American Eagle denim brand rallies again after launching second Sydney Sweeney campaign

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American actress Sydney Sweeney in a new ad campaign for denim retailer American Eagle.

American actress Sydney Sweeney in a new advertising campaign for denim retailer American Eagle.

PHOTO: AMERICANEAGLE/INSTAGRAM

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American Eagle Outfitters shares jumped on April 15 after the denim retailer unveiled a second campaign with Euphoria (2019 to present) star Sydney Sweeney, a year after a viral and controversial advertisement featuring her fuelled a stock rally.

American Eagle’s shares rose nearly 6 per cent to US$18.80 (S$23.90) in early trading after it launched a new ad with Sweeney for its summer season denim shorts collection, which includes low-rise shorts and super low-rise micro “skorts”.

The company’s first ad with the American actress, called Great Jeans, faced social media criticism over perceived racial undertones, but has helped its shares rise 77 per cent since it was launched in July 2025.

Revenue also jumped 37 per cent in the six months through January, compared with a 24 per cent rise in the same period a year earlier.

Cast member Sydney Sweeney attends a premiere for the television series Euphoria in Los Angeles on April 7.

PHOTO: REUTERS

Credit and debit card data suggests last summer’s Sweeney campaign was more than just a short-term boost for American Eagle, according to Mr Michael Gunther, senior vice-president of research and market intelligence at Consumer Edge.

Apparel and accessories companies such as American Eagle and Tabby handbag maker Tapestry have leaned on celebrity collaborations to appeal to affluent Gen Z customers willing to spend on pricier nice-to-have items, even as lower- and middle-income consumers struggle to afford essentials.

The new campaign, called Syd for Short: American Eagle Jean Shorts, is the company’s latest effort to boost demand as it navigates lingering pressure from tariff-linked costs.

The company sources most of its products from vendors in Asia, according to its latest annual filing, and as at last close, its shares were down about 28 per cent in 2026.

However, American Eagle forecast annual sales above estimates and reported a blowout holiday quarter in March as marketing and campaigns with celebrities such as Sweeney drove demand.

The Great Jeans campaign was rolled out just a couple of months after the company pulled its annual targets in 2025, citing pressure from tariff-related costs. REUTERS

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