American Eagle Outfitters’ shares soared more than 10 percent after the opening of the stock market after it announced a partnership with Sydney Sweeney, an actress who will front their Fall 2025 Denim Campaign.
According to the company, the new campaign will be titled, “Sydney Sweeney Has Great Jeans”, and feature denim styles that are tailored specifically for Gen Z consumers, the most important consumer group of the brand.
Stock opened up 10% higher, but has since pared gains. It was currently trading at around 7%.
This marketing blitz includes 3D Billboards, a Snapchat lens, AI-powered Virtual Try-On Tech, and a prominent placement at Sphere’s Exosphere in Las Vegas. It is the most expensive promotion to date.
American Eagle’s CMO Craig Brommers said to Marketing Dive that “this is our Super Bowl”, referring the denim boom which usually comes along with this season.
He added, “To partner with Sweeney is saying something. And it’s saying something that American Eagle, in a retail market which has become more difficult this year, is still making big bets.”
American Eagle is struggling with consumer confidence, and this push for denim comes at the same time.
This campaign comes at a difficult time for US retailers, as many are struggling with lower consumer spending.
American Eagle, too, is experiencing a slowdown in the apparel market.
The company retracted its guidance for the year in May citing uncertainty related to tariffs, especially with regards to China sourcing.
The renewed emphasis on celebrity denim partnerships and the newly-established focus is an attempt to revitalize demand.
Sweeney’s roles in “Euphoria”, “The White Lotus” and other films have a great appeal to Gen Z, which is increasingly turning towards celebrities and influencers when it comes to fashion.
This campaign features a limited edition “Sydney Jean”, as well as a denim jacket co-designed by the two parties. It taps into fast fashion’s growing popularity for capsule collections and exclusivity.
Analysts believe that the move is both offensive and defensive, as it serves to gain lost ground in an overcrowded market.
Wall Street responds to short-term interest as it draws attention
The interest of investors also seems to be increasing.
Before Thursday’s rally the American Eagle share price had fallen about 35% in year to date, with the closing value on Wednesday being $10.82.
Stocks jumped sharply to $12.
The analysts noted a large short interest, which was roughly 12.2% of the float according to LSEG. This may have been a factor in the rapid upward movement, especially as the attention surrounding the stock grew, especially on Reddit Forums like WallStreetBets.
Social media posts echoed previous events, like Crocs 2020’s stock rise after Justin Bieber collaborated with the company.
American Eagle previously worked with stars like Coco Gauff, a tennis player and Jenna Ortega. But the Sweeney Campaign is its most ambitious.
Corey Tarlowe told his clients that, after a meeting with the management of Jefferies on 18 June, “they expect ongoing headwinds to the consumer will impact the top-line and margin performance in the coming 6-12 months.”
Tarlowe has given American Eagle a Hold rating. He noted the company’s plans to reduce costs and diversify their supply chains. This will bring China sourcing down to less than 10% in this year.
Visible Alpha tracks six brokerages that track American Eagle. Four rate the stock as a “hold”, one as a “sell” and only one as a buyer.
The post American Eagle stocks surge 10% as Sydney Sweeney leads Fall Campaign may be updated as new information becomes available
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