Quick Read
- American Eagle’s stock has soared 136% in six months, driven by a viral Sydney Sweeney jeans campaign that exceeded initial expectations.
- The retailer projects an 8-9% holiday sales surge, significantly surpassing analysts’ 2.2% growth predictions.
- CEO Jay Schottenstein defended the campaign against accusations of promoting eugenics, stating, “We stand behind what we did.”
- A New Yorker writer critical of the ad faced public backlash and deleted social media after past racist tweets resurfaced, intensifying the advertising controversy.
The American Eagle stock surge of 136% over the past six months has largely been attributed to its “Great Jeans” ad campaign, featuring actress Sydney Sweeney, launched in July 2025. This significant rise has prompted the apparel retailer to substantially increase its holiday sales forecast, surprising market analysts and resetting investor expectations.
The company’s financial turnaround began with the strategic launch of its new denim campaign. CEO Jay Schottenstein highlighted decisive improvements across merchandising, marketing, and operations as primary drivers for this positive change, noting these shifts early in September 2025. Third-quarter revenue increased 6%, accompanied by a 4% rise in total comparable sales. Official statements detailing their financial performance are available on American Eagle’s investor relations page.
The American Eagle stock has shown a particularly sharp ascent, gaining approximately 50% in the past month and an additional 19% in the last five days. On December 5, 2025, the company raised its holiday sales forecast, now projecting comparable sales growth between 8% and 9% for the critical holiday quarter. This projection significantly exceeds analysts’ earlier estimates of a modest 2.2% increase, underscoring the notable impact of the new jeans campaign.
“I’m extremely pleased with the significant trend change across our business reflecting decisive steps taken from merchandising to marketing to operations – all having a positive impact.”
— Jay Schottenstein, American Eagle Outfitters CEO
The high-profile campaign, however, faced criticism. Accusations emerged that the ad, by highlighting Sydney Sweeney’s perceived physical features, promoted eugenics and exclusionary ideals of whiteness. Despite the advertising controversy, CEO Schottenstein firmly defended the campaign, affirming the company’s commitment to its marketing choices.
“You can’t run from fear. We stand behind what we did.”
— Jay Schottenstein, American Eagle Outfitters CEO
Public discourse intensified after an August 2025 article in the New Yorker by writer Doreen St. Félix critiqued the campaign. Mid-August 2025 saw several of St. Félix’s older tweets resurface, containing racist remarks. These revelations ignited substantial public backlash, leading St. Félix to delete her social media accounts and shifting focus from her initial critique of the ad. This incident highlights the volatile nature of online discourse.
The success of the Sydney Sweeney jeans campaign demonstrates the significant influence of celebrity endorsements on consumer behavior and American Eagle stock surge performance. This ongoing narrative also emphasizes the growing complexities for brands as they navigate public perception, especially concerning representation and social commentary in advertising. For American Eagle, the immediate challenge involves sustaining this momentum and managing the continuing dialogue surrounding its marketing decisions.
“The ads have undeniably gotten the actress, and the company, more attention and publicity than they have ever had…People are talking about her, and in entertainment, that’s almost always a win.”
— Steve Honig, PR Expert