American Eagle Outfitters’ stock price surged 25% on September 3, 2025, following stronger-than-expected quarterly earnings, largely driven by the viral marketing campaign featuring actress Sydney Sweeney, which significantly boosted brand awareness and sales. CEO Jay Schottenstein credited the success to recent initiatives with Sweeney and NFL star Travis Kelce, highlighting improved customer engagement and comparable sales.
The earnings release came after a challenging period for the retailer, which had withdrawn its full-year outlook in May due to market difficulties and reported a $75 million merchandise write-off. However, the second-quarter results showed a positive turn, with total revenue at $1.28 billion, though down 1% year-over-year, indicating resilience fueled by marketing efforts. Schottenstein emphasized that the fall season is off to a strong start, attributing it to enhanced product offerings and the impactful campaigns.
Sydney Sweeney’s advertisement, launched in late July with the tagline “Sydney has great jeans,” quickly became a cultural phenomenon. The ad, which playfully connects genes and jeans, sold out all associated products within a week, with many items disappearing within a day. Chief Marketing Officer Craig Brommers reported that the campaign generated unprecedented new customer acquisition in just six weeks, contributing to a staggering 40 billion impressions across various platforms.
The campaign also sparked widespread discourse, drawing praise from former President Donald Trump, who called it “fantastic,” while some critics raised concerns about potential political undertones. The New York Times noted amplification by right-leaning accounts, escalating online debates. Despite the controversy, the attention significantly benefited brand visibility and engagement.
In addition to Sweeney’s campaign, the partnership with Travis Kelce, unveiled in August shortly after his engagement to Taylor Swift, added further momentum. American Eagle executives are now focused on converting this buzz into lasting customer loyalty and repeat business, with plans to introduce new elements to the campaigns later this year to maintain engagement.
Looking ahead, the company faces challenges from tariffs, with impacts expected to be $20 million in the third quarter and $40-50 million in the fourth quarter. Price increases are planned to mitigate these effects, but leadership remains optimistic about future growth, viewing the current marketing success as a solid foundation.
This case illustrates the powerful role of celebrity-driven marketing in the retail sector, demonstrating how viral campaigns can drive significant business outcomes even in uncertain economic times. The ability to generate massive impressions and quick sales highlights the evolving nature of modern advertising and its impact on consumer behavior.