American Eagle rallies again after launching second Sydney Sweeney campaign

People walk past a campaign poster starring Sydney Sweeney which is displayed at the American Eagle Outfitters store. (AP Photo/Yuki Iwamura, File)

American Eagle Outfitters shares jumped on Wednesday after the denim retailer unveiled a second campaign with “Euphoria” star Sydney Sweeney, a year after a viral and controversial ad featuring the actress fueled a stock rally.

Shares of the company rose five per cent in premarket trading after the announcement.

American Eagle is partnering with Sweeney for its summer season denim shorts collection that includes low-rise shorts and super low-rise micro “skorts.”

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

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

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.

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

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American Eagle in March forecast annual sales above estimates, helped by marketing-driven demand for its apparel and accessories from affluent shoppers.

The “Great Jeans” campaign was rolled out just a couple of months after American Eagle pulled its annual targets citing pressure from tariff-related costs.

U.S. President Donald Trump told reporters last year, “If Sydney Sweeney is a registered Republican, I think her ad is fantastic.”

(Reporting by Sanskriti Shekhar and Juveria Tabassum in Bengaluru; Editing by Jonathan Ananda)