American Eagle shares jumped by a third as the fashion retailer cashed in on its controversial ‘great jeans’ campaign featuring actress Sydney Sweeney.
The advertising blitz faced backlash on social media over perceived racial undertones – but also resulted in a flurry of interest in the retailer.
Chief marketing officer Craig Brommers hailed ‘unprecedented new customer’ numbers and said the ‘Sydney Sweeny Has Great Jeans’ campaign ‘is not going anywhere’.
He added: ‘Sydney will be part of our team as we get into the back half of the year, and we’ll be introducing new elements of the campaign as we continue forward.’
The company is also benefiting from its collaboration with National Football League (NFL) star Travis Kelce, who is engaged to be married to singer Taylor Swift.
Partnering with Kelce’s clothing brand Tru Kolors has helped American Eagle amplify its reach among young shoppers.
American Eagle says the ‘Sydney Sweeny Has Great Jeans’ campaign ‘is not going anywhere’.
American Eagle said its customer count was up more than 700,000 since the launch of the campaigns with Sweeney and Kelce, and the ads have generated 40 billion social media impressions.
The company is relying on celebrity-led campaigns to attract Gen Z and boost demand among shoppers who are pulling back on spending amid economic uncertainty.
‘Marketing momentum is translating into sales,’ said Lale Akoner, global market analyst at eToro.
Shares rose 33 per cent in early trading in New York.
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
InvestEngine
InvestEngine
Account and trading fee-free ETF investing
Trading 212
Trading 212
Free share dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
