American Eagle Stock Sees a 25% Surge Following Sydney Sweeney's Controversial 'Great Jeans' Ad Campaign American Eagle saw its stock jump 25% after its earnings call on Wednesday.

By David James

Key Takeaways

  • American Eagle says it has seen increased sales since the launch of its controversial ad campaign.
  • The company's CEO cited the Sydney Sweeney and Travis Kelce campaigns for an uptick in customer awareness in an earnings call.
  • The jeans Sweeney promoted were said to have sold out in a week.
Michael M. Santiago | Getty Images

While many people were wringing their hands over the controversial ad in which Sydney Sweeney is said to have "great jeans," American Eagle Outfitters CEO Jay Schottenstein is applauding.

"The fall season is off to a positive start," he wrote in an earnings release statement. "Fueled by stronger product offerings and the success of recent marketing campaigns with Sydney Sweeney and Travis Kelce, we have seen an uptick in customer awareness, engagement and comparable sales."

Related: Taylor Swift-Travis Kelce Engagement Sends H&R Block Employees Home Early

Detractors of Sweeney's ad accuse it of promoting eugenics (the idea of breeding a "superior" human race) by playing on the word "genes," equating blonde hair and blue eyes with superiority.

The Travis Kelce ad, on the other hand, was a fairly straightforward introduction to a collection you can see here.

While the company's total net revenue $1.28 billion was down 1% from last year, Sweeney's jean collaborations "sold out within a week," CNN reports.

During the earnings call, Chief Marketing Officer Craig Brommers declared that the Sweeney campaign "is a winner, and in just six weeks, the campaign has generated unprecedented new customer acquisition."

American Eagle's Executive Creative Director, Jennifer Foyle, added that combined, the Sweeney and Kelce campaigns have "generated a staggering 40 billion impressions."

The retailer's stock spiked 25% in after-hours trading after the call.

In less rah-rah news, CNN reports that American Eagle expects tariff impacts to be $20 million in the third quarter and $40 million to $50 million in Q4. They said they utilize price increases to mitigate the impact on their bottom line.

Related: 'A Necessary Decision': Nestlé CEO Ousted After Revelation of Romantic Relationship With Subordinate

David James

Entrepreneur Staff

Staff writer

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