American Eagle’s stock jumped over 20% after President Donald Trump praised the retailer’s latest ad campaign. The surge followed Trump’s endorsement of actress Sydney Sweeney, who stars in the company’s fall marketing push. Trump called the ad the “hottest” campaign running, which quickly caught investor and shopper attention. The American Eagle surge reflects how political endorsements can drive sharp market movements. Shares had been down recently, but this comment changed momentum instantly.
Just a week ago, American Eagle announced the campaign with Sweeney using the slogan, “Sydney Sweeney has great jeans.” Some critics argued the slogan had a double meaning. They claimed the phrase referred more to her genetics than the denim. Others criticized the campaign for being too sexualized and out of touch. Despite backlash, American Eagle only issued a short response defending its message.
The company emphasized that the slogan refers to jeans only. It added that confidence and personal style are key themes of the campaign. American Eagle confirmed it would continue celebrating individual expression through fashion. This simple message resonated with shoppers and likely contributed to the American Eagle surge. Additionally, the ad’s attention made the brand go viral.
Search data shows American Eagle has reached its highest popularity in over two decades. The buzz may boost foot traffic and online visits for the brand. However, analysts still question if this visibility will lead to stronger sales. The company has recently struggled with falling revenue and mounting inventory issues. It hopes this campaign will help recover some of that lost momentum.
Earlier this year, American Eagle faced a $75 million write-down due to unsold spring and summer products. The company also pulled its yearly guidance because of slow sales and deep discounting. Additionally, rising tariffs and reduced consumer spending have pressured earnings. Its latest quarter saw falling revenue and shrinking margins. That’s why the American Eagle surge provides a temporary but important win.
Operating income for the current quarter is expected to be between $40 million and $45 million. The company also projected a 5% revenue decline and lower gross margins. Investors are eager to see whether the attention will translate into stronger performance. The American Eagle surge shows the impact of culture, politics, and marketing in retail. Future earnings will reveal the lasting effect of the Sydney Sweeney campaign.
For more business updates, visit DC Brief.
