American Eagle counts new customers after Sydney Sweeney ad frenzy and
shares soar
[September 05, 2025] By
MICHELLE CHAPMAN
Shares of American Eagle Outfitters spiked 34% Thursday after the teen
clothing retailer said the frenzy surrounding its Sydney Sweeney ad
campaign drew new customers during its most recent quarter.
American Eagle rolled out its new new ad campaign starring 27-year-old
actor over the summer. The fall denim campaign sparked a debate about
race, Western beauty standards, and the backlash to “woke” American
politics and culture.
Negative reactions centered on ads that used the word “genes” instead of
“jeans” featuring the blonde-haired, blue-eyed actor known for the HBO
series “Euphoria” and “White Lotus.”
But American Eagle did get noticed, executives said late Wednesday in a
call after the Pittsburgh retailer posted second quarter earnings.
“We saw a record-breaking new customer acquisition and brand awareness
cutting across age, demographics and genders,” said CEO Jay
Schottenstein.
Traffic built up throughout the second quarter and continued into
August, he said.
The company now expects comparable-store sales to rise by low
single-digit percentages in the third and fourth quarters. The company
withdrew its outlook for the year this spring citing volatility from the
chaotic global economic situation. But it said Wednesday that same-store
sales should be flat this year with the bump.
American Eagle did say that its brand also benefitted from a new ad
campaign featuring newly engaged NFL star Travis Kelce.
American Eagle said the campaign was always about its clothing and not
race when responding to criticism. A month later retail rival The Gap
put out its own ad featuring girl group KATSEYE. That ad received some
praise for its inclusivity.
Gap CEO Richard Dickson, speaking Thursday at a Goldman Sachs global
retail conference in New York City, said its “Better in Denim” campaign
received 400 million total views and in three days had more views than
the brand’s four prior ads combined.
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People walk past a campaign poster starring Sydney Sweeney which is
displayed at the American Eagle Outfitters store, Friday, Aug. 1,
2025, in New York. (AP Photo/Yuki Iwamura, File)
 “I think when the industry creates
campaigns that are talked about, it generates interest in the
industry, ” Dickson said in an interview with The Associated Press.
“Our current campaign, Better in Denim, is a great example of that.”
Neil Saunders, managing director of GlobalData, wrote that the
frenzy around the Sweeney campaign is something of a "tempest in a
teacup.”
“While it generated strong reactions, it ultimately had no serious
detrimental impact on sales,” he said. “Indeed, guidance for the
second half points to improved momentum, supported by both the denim
marketing and the ongoing Travis Kelce partnership.”
And attention from the Sweeney campaign doesn't seem to have hurt
the brand.
“Regardless of the merits of the collaborations, making more noise
is exactly what American Eagle needs to do to cut through and regain
ground among consumers for whom it has slipped off the radar,
Saunders explained.
For the second quarter, American Eagle's revenue dipped 1% to $1.28
billion.
Chief Marketing Officer Craig Brommers said Wednesday that the
Sweeney ad campaign will continue.
“Sydney will be part of our team as we get into the back half of the
year and we’ll be introducing new elements of the campaign as we
continue forward,” he said.
Shares of American Eagle Outfitters Inc. are up 10% this year with
the latest surge.
——
AP Retail Writer Anne D'Innocenzio in New York contributed to this
report.
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