American Eagle is enjoying a surge of momentum after its bold partnership with actress Sydney Sweeney proved to be a gamechanger. The “Great Jeans” campaign, both praised and criticized, has not only fueled record-breaking sales but also sent the company’s stock soaring.
Controversial campaign creates major buzz
Launched in late July, Sydney Sweeney’s “Great Jeans” ad caught attention immediately. The play on words between “genes” and “jeans” sparked heated debates online, with critics arguing it touched on sensitive issues tied to race and beauty standards. American Eagle however insisted the message was strictly about denim.
What began as backlash soon turned into national recognition. Former President Donald Trump weighed in on Truth Social, calling the ad fantastic and dubbing it the hottest ad out there. Social media platforms, TikTok trends, late-night shows, and even the White House joined the conversation, amplifying the campaign’s reach far beyond traditional retail advertising.
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Despite the controversy, American Eagle executives viewed the results as a triumph. Chief Marketing Officer Craig Brommers credited the campaign for delivering unprecedented new customer acquisition in just six weeks. From a branding perspective the gamble paid off.
Financial impact exceeds expectations
The retailer’s second-quarter results reflected the campaign’s power. Diluted earnings per share rose 15 percent year over year to 45 cents, beating Wall Street forecasts. While net revenue slipped 1 percent to 1.28 billion dollars and comparable sales also dipped by 1 percent, the denim line carried enough momentum to offset broader declines.
CEO Jay Schottenstein praised the results, highlighting the fall denim campaign with Sweeney as proof of American Eagle’s standing as the American jeans brand. The company reported record awareness across age groups and genders, showing the ad struck a chord far beyond its core Gen Z audience.
Strengthened by this momentum, the retailer reinstated its full-year guidance after previously withdrawing it due to market uncertainty. Comparable sales are now expected to remain steady, better than the slight decline analysts predicted. However, operating income projections were trimmed to 255 to 265 million dollars from earlier estimates of up to 375 million dollars, citing continued tariff impacts.
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Celebrity power drives business growth
American Eagle also embraced another cultural moment by teaming up with Kansas City Chiefs star Travis Kelce through his lifestyle brand Tru Kolors. The collaboration launched just one day after his engagement to singer Taylor Swift became public and racked up three times more sales in a single day than previous partnerships managed over entire weeks.
Together, the Sweeney and Kelce campaigns generated an estimated 40 billion impressions and attracted more than 700000 new customers since July. Among the standout products was the Sydney Jean, which sold out within days, with part of the proceeds supporting mental health services through Crisis Text Line.
Schottenstein expressed confidence heading into the fall season, pointing to rising engagement and stronger comparable sales. More collaborations with Sweeney are already planned, signaling that American Eagle sees celebrity-driven marketing as central to its growth strategy.
While many retailers continue to struggle with cautious Gen Z spending and a tough economic environment, American Eagle’s calculated risk on pop culture partnerships has set it apart. For now denim is not only back in fashion, it is driving the company’s best numbers in years.
