American Eagle stock up after 'success' from Sydney Sweeney, Travis Kelce ads
American Eagle Outfitters' stock jumped 29% on Thursday, Sept. 4, after the company announced it’s seen a significant increase in traffic following campaigns with Sydney Sweeney and Travis Kelce.
“The fall season is off to a positive start. 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,” said American Eagle CEO Jay Schottenstein as the company reported second-quarter earnings the day before.
The stock jumped 25% in the after market on Wednesday, Sept. 3, following the announcement.
American Eagle reported an operating income of $103 million, a 2% increase on revenue of $1.28 billion, exceeding market expectations. The company’s stock closed at $13.62 on Wednesday and was trading around $16.75 a share on Thursday morning.
American Eagle + Travis Kelce: Retailer drops collection after Taylor Swift engagement
Sydney Sweeney, Travis Kelce boost brand amid tariff woes
American Eagle released its ad campaign titled “Sydney Sweeney Has Great Jeans” on July 23 – leading to both uproar and support. On Aug. 27, a day after Kelce announced his engagement to Taylor Swift, the company released a collaboration with him and his Tru Kolors brand.
It's big news for the company, which had been struggling to attract customers. Before the earnings release, the stock was down 20% from two years ago. By midday on Thursday, it had recovered the losses.
In May, the company pulled guidance as many retailers braced for the potential impacts of President Donald Trump’s tariffs. Since then, the company has said price increases are ongoing. The company estimates tariffs will cost $20 million in the third quarter and $40 to $50 million in the fourth quarter.
Sweeney campaign sparks controversy
The Sweeney campaign faced backlash after consumers accused the company of promoting eugenics due to the tagline and the actress’s blonde hair, blue eyes and white complexion.
The actress begins the advertisement saying: “Genes are passed down from parents to offspring, often determining traits like hair color, personality and even eye color. My jeans are blue.”
Responding to the criticisms on Aug. 1, the company stated the ad “is and always was about the jeans.”
“Her jeans. Her story. We’ll continue to celebrate how everyone wears their AE jeans with confidence, their way. Great jeans look good on everyone.”
Sweeney-backed apparel sells out
Despite the scrutiny, the company stated that items from the campaign “sold out within a week,” with some selling out in a day. The Kelce campaign has only kept the momentum going. Both the campaigns had been over a year in the making, the company said.
Since their launch, the company’s said its customer count has increased by 700,000.
Michelle Del Rey is a trending news reporter at USA TODAY. Reach her at
Content Original Link:
" target="_blank">
