Shares in American Eagle Outfitters climbed on Wednesday after the clothing retailer revealed a brand-new promotional campaign featuring Euphoria actress Sydney Sweeney, Reuters reports.
The move comes a year after their initial highly debated advert generated massive online attention, sparked a significant stock rally and cemented Sweeney’s status as a key brand ambassador.
Early trading saw the denim brand’s shares surge by almost 6% to reach $18.80. This latest bump followed the unveiling of a summer collection focused on denim shorts which prominently features ultra-low-rise micro «skorts» alongside traditional low-rise options.
A controversial partnership
The retailer’s inaugural collaboration with the actress in July 2025 was titled «Great Jeans» and drew criticism on social media for alleged racial undertones. However, the controversy proved financially lucrative.
Since that first advert aired the firm’s stock has rocketed by 77%. Furthermore, revenue leapt by 37% in the six months leading up to January compared to a 24% increase during the corresponding period the previous year.
The campaign even drew commentary from U.S. President Donald Trump last year who told journalists, «If Sydney Sweeney is a registered Republican, I think her ad is fantastic.»
Data from credit and debit card transactions indicates that this initial marketing push provided sustained momentum rather than a fleeting bump. According to Michael Gunther, Senior Vice President of Research and Market Intelligence at Consumer Edge, spending experienced a notably sharper increase among Republican shoppers.
Targeting Gen Z amidst economic hurdles
To attract wealthier Gen Z buyers who are still willing to splash out on luxury accessories, high-end footwear and apparel, brands like American Eagle and Tapestry are increasingly relying on celebrity partnerships. This strategy is paying dividends even as consumers from lower and middle-income brackets cut back on non-essential spending.
Dubbed «Syd for Short: American Eagle Jean Shorts», this latest marketing push is designed to stimulate consumer demand while the business battles persistent financial pressures from trade tariffs.
Because the company relies heavily on Asian suppliers for the majority of its goods, these tariff-related costs have taken a heavy toll. According to its latest annual filing, its stock had plummeted by approximately 28% this year prior to Wednesday’s market close.
Despite these supply chain hurdles, American Eagle recently projected annual sales that surpassed market expectations. In March the retailer reported an exceptionally strong festive quarter and attributed the robust demand directly to its successful celebrity-driven advertising strategies.
Notably, the original «Great Jeans» campaign was rolled out merely months after the brand was forced to abandon its annual financial targets due to those very same tariff burdens.
