American Eagle, a giant in youth fashion retail, saw its shares surge 25% in after-hours trading on Wednesday, September 3, 2025, after announcing that advertising campaigns featuring Sydney Sweeney and Travis Kelce are expected to boost sales. The Pittsburgh-based company exceeded second-quarter expectations, as revealed by CEO Jay Schottenstein. The “Great Jeans” campaign, starring Sweeney, sparked controversy for allegedly promoting divisive beauty standards, while the collaboration with Kelce, recently engaged to Taylor Swift, capitalized on the athlete’s fame. Despite a 1% sales drop from May to July, the brand projects growth in the coming months, even with tariffs potentially costing $70 million in the second half. The success of the campaigns reflects a bold marketing strategy, but criticism and economic challenges keep the company in the spotlight.
The Sweeney campaign, launched in July, garnered 40 billion social media impressions, selling out its exclusive jeans within a week. The ad, which played on the words “genes” and “jeans,” divided opinions, with some critics pointing to eugenics undertones, while others, including President Donald Trump, praised its “anti-woke” approach. The new partnership with Kelce, announced on August 27, leverages the NFL player’s popularity and his recent media exposure.
- Key highlights of American Eagle’s campaign:
- 40 billion social media impressions with Sweeney’s ad.
- Sweeney’s jeans sold out within a week of launch.
- Kelce collaboration includes 90 pieces, from t-shirts to jackets.
- Company shares rose 25% in after-hours trading.
American Eagle’s focus on viral campaigns reflects an attempt to reverse a sales slump, which had fallen 5% in the prior quarter. The company now projects low single-digit sales growth for the coming months, driven by increased consumer engagement.
Bold marketing strategy
The “Great Jeans” campaign with Sydney Sweeney was designed as a brand reinvention, targeting young consumers in a competitive market. The choice of the actress, known for roles in “Euphoria” and “The White Lotus,” brought immediate appeal but also criticism. The promotional video, in which Sweeney says, “My jeans are blue” after discussing genetics, was interpreted by some as referencing Eurocentric beauty standards. American Eagle defended the campaign, stating it was solely about jeans and the actress’s personal story.
The company chose not to back down amid criticism, a decision analysts say reflects a shift in corporate behavior. Instead of issuing an apology, American Eagle reinforced the original message, gaining support from conservative sectors, including public figures like President Trump, who praised the campaign on his Truth Social platform.
- Core elements of the “Great Jeans” campaign:
- Use of “genes” and “jeans” wordplay to attract attention.
- Focus on Sweeney as a modern youth style icon.
- Donation of part of the profits to Crisis Text Line, supporting victims of domestic violence.
- “Planned provocation” strategy, per chief marketing officer Craig Brommers.
The campaign’s success, despite the controversy, brought American Eagle back into the consumer spotlight, with Google searches for the brand hitting a 20-year high.
Travis Kelce partnership and the Swift effect
The collaboration with Travis Kelce, launched shortly after his engagement to Taylor Swift was announced, was strategically timed to capitalize on the couple’s popularity. The AE x Tru Kolors line, featuring 90 pieces from t-shirts to cargo pants, reflects the NFL player’s laid-back style. The campaign, which also includes athletes like gymnast Suni Lee, was well-received, with items like varsity jackets selling out quickly on the retailer’s website.
Kelce’s selection came at an opportune moment, following an Instagram post announcing his engagement to Swift, which garnered nearly 30 million likes in under 24 hours. American Eagle, which planned the partnership for over a year, saw the couple’s media exposure as a chance to boost its cultural relevance.
- Details of the AE x Tru Kolors line:
- Includes items priced from $14.95 to $179.95, focusing on casual style.
- Features athletes like Anna Frey and Kiyan Anthony in the campaign.
- Items like cargo pants and sweaters already low in stock at launch.
- Collaborative project with Kelce, who was involved in all design decisions.
The Kelce campaign marks a shift from the controversy surrounding Sweeney but maintains the focus on high-profile celebrities to drive sales.
Tariff impacts on financial performance
Despite the campaign successes, American Eagle faces economic challenges, particularly with U.S. government-imposed tariffs. The company estimates these tariffs will add about $70 million in costs in the second half of 2025, though the figure was halved through supplier negotiations. The retailer’s strategy includes supply chain adjustments and selective price increases, but not relying solely on price hikes to mitigate costs.
The tariff impact reflects a broader scenario in U.S. retail, where global brands face trade policy pressures. American Eagle, however, has managed to minimize negative effects, maintaining affordable prices for its young audience.
- Measures against tariff impacts:
- Supplier negotiations to reduce costs.
- Shifts in raw material sourcing to avoid high tariffs.
- Selective price increases without directly impacting consumers.
- Projection of low single-digit sales growth.
The company’s ability to navigate these economic challenges while maintaining successful marketing campaigns demonstrates a balanced approach between innovation and cost management.
Public and market reactions
The public response to the campaigns was mixed but undeniably impactful. Sweeney’s campaign sparked heated debates on social media, with critics calling the “genes/jeans” wordplay problematic, while supporters, including political figures, celebrated its rejection of what they called “woke culture.” American Eagle capitalized on the controversy, keeping the campaign live and attracting significant attention.
The financial market responded positively, with the company’s shares reaching their highest value in two months after Trump’s endorsement. However, analysts warn that growth may not be sustainable, as physical store foot traffic dropped 4% in 2025, according to PassBy data.
- Main reactions to Sweeney’s campaign:
- Social media criticism for alleged promotion of exclusionary beauty standards.
- Support from conservative sectors for its “anti-woke” stance.
- 23% share price increase following Trump’s August comments.
- 4% drop in physical store foot traffic, signaling offline challenges.
American Eagle continues to bet on bold campaigns to maintain relevance but must balance media attention with long-term financial stability.
Future of American Eagle’s campaigns
The company plans to keep Sweeney and Kelce as faces of future campaigns, with executives hinting at more collaborations in 2025. The strategy of leveraging high-profile celebrities appears effective, but American Eagle must navigate the polarization caused by its creative choices. The donation of profits to Crisis Text Line also reinforces the brand’s social commitment, though it’s been underemphasized in campaigns.
The combination of viral marketing, celebrity partnerships, and adaptation to economic challenges positions American Eagle as a resilient brand in a volatile market. Its ability to turn controversies into positive attention will be crucial for its performance in the coming months.
