Gap is riding a wave of momentum after its viral summer denim campaign ignited a cultural moment and a sales surge. Much like American Eagle’s breakout success featuring Sydney Sweeney, the buzz around Gap’s ad helped turn social media views into real revenue, showing how a clever blend of nostalgia, star power, and virality can translate into billions for fashion brands.
“With more than 8 billion impressions and 500 million views, Better in Denim culminated in a global cultural takeover and has become one of the brand’s most successful campaigns to date, generating significant traffic and double-digit growth in denim,” Richard Dickson, CEO of Gap Inc., said Thursday on the company’s third-quarter earnings call.
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Following the campaign’s success, Gap Inc., which owns brands such as Old Navy and Banana Republic, reported stronger-than-expected quarterly results and increased its full-year outlook. Investors responded positively, sending the company’s shares up around 5% in after-hours trading.
Gap’s “Better in Denim” campaign, released over the summer, quickly struck a chord with audiences. Featuring global girl group Katseye dancing to Kelis’ “Milkshake,” the ad dominated feeds and helped spark a broader denim moment across the industry. It also landed during an unofficial “denim ad showdown,” as brands like American Eagle and Lucky Brand launched their own buzzy, attention-grabbing campaigns, each vying for cultural relevance and consumer dollars.
“Influencer content is among the most common product discovery methods amongst Gen Z and millennials, which we’ve been performing incredibly well with,” he said.
He added that “collaborations are continuing to drive relevance and revenue,” pointing to the recent tie-up with Sandy Liang, which drew a wave of younger shoppers to the brand. Beyond boosting youth appeal, he said Gap is also resonating with higher-income customers by positioning itself “between premium and value,” helping it connect across demographics while strengthening its competitive edge.
Gap Inc. reported a 5% increase in comparable sales from the previous year, with the Gap brand itself posting a 7% jump, according to Chief Financial Officer Katrina O’Connell. Dickson attributed the strong quarterly performance to “broad-based strength in denim,” repeatedly highlighting the impact of the Katseye campaign in driving momentum across the portfolio.
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The resurgence of denim isn’t just about fabric, rather it’s about faces, culture, and timing. Fashion brands are increasingly tapping into the power of viral collaborations, enlisting rising stars, viral sensations, and culturally relevant personalities who speak directly to Gen Z’s tastes.
These campaigns are not traditional ads as they are shareable moments engineered for Instagram reels, video content and hype. When a video hits the right emotional and cultural beats like nostalgic music, authentic dance moments, or a fan-favorite influencer, it becomes a social currency. That momentum quickly translates into sales. Brands like Gap, American Eagle, and others have proven that when the right talent frontlines a campaign, it doesn’t just build awareness it builds community among Gen Z.