American Eagle is flying high on celebrity hype. Shares jumped after the retailer revealed that collabs with Sydney Sweeney and Travis Kelce are expected to boost sales.
Shares of the company jumped 25% in after-hours trading Wednesday after CEO Jay Schottenstein said the second-quarter results “exceeded expectations” and predicted continued growth driven by the buzz from its viral marketing campaigns. “This is a moment to take big swings,” noting that brand awareness, consumer engagement, and purchase intent are up. “We’ll be looking to convert this buzz into business all through the back half of the year,” said CMO Craig Brommers.
American Eagle grabbed attention with its controversial “Great Jeans” ad for its denim collection featuring Sweeney, igniting discussions around race and beauty standards. The company launched a campaign on July 23 featuring “Euphoria” star Sydney Sweeney with the copy “Sydney Sweeney has great jeans,” appearing on TV, social media, and storefronts where she said, “Genes are passed down from parents to offspring, often determining traits like hair color, personality and even eye color. My jeans are blue.”
The ad, which aimed to celebrate authenticity and confidence, drew criticism for promoting certain beauty standards and appearing to capitalize on Sweeney’s image rather than the denim. In response, American Eagle clarified that the campaign was focused on the jeans and Sweeney’s story, emphasizing that “great jeans look good on everyone.”
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The campaign generated around 40 billion impressions and saw Sweeney’s signature jeans sell out within just a week of its debut. Reflecting on this, CEO Schottenstein said, “The iconic fall denim campaign with Sydney Sweeney affirms we are the American jeans brand. We saw record-breaking new customer acquisition and brand awareness, cutting across age demographics and genders,” as quoted by Forbes.
Brand president Foyle noted that the Sweeney Signature jeans collection sold out within a week, with strong demand also for her online “Syd’s Picks” shop. Customer counts rose by 700,000 during the quarter.
“Consumer acquisition is coming from every single county in the U.S. This momentum is national, and it is pervasive. We are off to a start beyond our wildest dreams,” added CMO Brommers.
Recently, the company also revealed a partnership with athlete Travis Kelce shortly after reports of his engagement to pop star Taylor Swift surfaced. During the company’s second-quarter earnings call, an American Eagle executive said there’s more planned with Sweeney and Kelce, responding to questions about sustaining the brand’s momentum.
“Travis is at the intersection of fandom and fashion. Sports is driving culture in a way that it has never done before. And Travis is driving interest in fashion like never before,” Brommers said, Forbes quoted.
“This collaboration is off to an incredible start, just dominating our men’s business over the course of the Labor Day weekend, building on the men’s momentum that started in July. We could not be more excited about these back-to-back campaigns,” Brommers further added.
American Eagle reported a 1% decline in sales for the May-July period, following a 5% drop in the previous quarter, officials said Wednesday. However, executives, who had earlier withdrawn the annual sales forecast in May due to economic uncertainty, now anticipate sales growth in the coming months in the “low single digits,” driven by rising purchases across categories from denim to underwear.
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The company told analysts it expects tariffs to add about $70 million in costs during the second half of the financial year, a figure significantly lower than initially projected thanks to supplier negotiations and changes in sourcing. While some prices are being raised, executives emphasized that this was not the main strategy for offsetting tariff impacts.
Celebrity collaborations are proving to be a major revenue driver, with social media trends fueled by their influence translating into billions for brands. Figures like Sweeney and Kelce can turn posts and campaigns into instant cultural moments, driving sales, boosting customer engagement, and creating a halo effect that extends far beyond traditional advertising. In today’s market, the power of celebrity-driven content is reshaping how companies connect with consumers and generate significant financial returns.