By: Jerome Brookshire

American Eagle Outfitters is suddenly the talk of Wall Street — and not because of its sweaters or back-to-school discounts. The century-old mall staple stunned analysts on Thursday when its stock surged nearly 40% in a single trading session, propelled by what executives described as the brand’s boldest and most lucrative marketing gamble in years: a risqué campaign featuring Hollywood star Sydney Sweeney.

According to a report that appeared on Thursday in The New York Post, the ads — cheekily marketed as “Sydney Sweeney has great jeans” — have done more than just boost denim sales. In just six weeks, they’ve set off a storm of cultural debate, drawn partisan fire in Washington, and redefined the company’s public image, transforming a struggling retailer into one of the most closely watched comeback stories of the year.

American Eagle’s chief marketing officer Craig Brommers didn’t mince words during the company’s earnings call Wednesday night. “Sweeney is a winner,” he said. “In just six weeks, the campaign has generated unprecedented new customer acquisition.”

Investors took note. Shares skyrocketed 38% on Thursday, closing at $18.79. As The New York Post reported, that jump marked one of the steepest climbs in retail this earnings season, a remarkable reversal for a brand that has struggled to maintain relevance with Gen Z shoppers.

The Sweeney collection reportedly sold out in under a week, with some items gone in just 24 hours. Her ads have racked up more than 150 million social media views, according to company data, instantly turning her into the public face of the brand’s revival.

The spots themselves are a blend of tongue-in-cheek humor and unmistakable provocation. One shows Sweeney posing in front of a billboard reading “Sydney Sweeney has great genes,” with the word “genes” crossed out and replaced by “jeans.” Another features her deadpanning: “Genes are passed down from parents to offspring. My jeans are blue.”

While marketing executives hailed the wordplay as clever and attention-grabbing, critics on social media accused the brand of crossing a line. Some argued the ads were racially coded, celebrating Sweeney’s white heritage under the guise of selling denim. The uproar quickly morphed into a culture-war flashpoint, with the internet dividing sharply over whether the ads were edgy or offensive.

What began as a clothing campaign soon spilled into Washington. The New York Post reported that President Donald Trump leapt to Sweeney’s defense in early August, praising her as a Republican and calling her American Eagle spots the “HOTTEST ad out there.”

“Sydney Sweeney, a registered Republican, has the HOTTEST ad out there,” Trump wrote on Truth Social. “It’s for American Eagle, and the jeans are ‘flying [off] the shelves.’ Go get ’em Sydney. Being WOKE is for losers, being Republican is what you want to be.”

The White House followed with its own critique of the backlash. Communications director Steven Cheung called the controversy “cancel culture run amok.” Vice President JD Vance went further on the conservative “Ruthless” podcast, mocking Democrats for what he characterized as demonizing Sweeney’s popularity.

“My political advice to the Democrats is continue to tell everybody who thinks Sydney Sweeney is attractive is a Nazi,” Vance quipped. “That appears to be their actual strategy.”

Notably, no prominent Democrats have weighed in on the controversy — though that silence has done little to mute the online brawl. Social media platforms, particularly X and TikTok, have been awash with arguments over the campaign throughout August, effectively keeping American Eagle front and center in the cultural conversation.

While critics debated the symbolism, the bottom line told its own story. American Eagle reported second-quarter earnings of 45 cents per share, up 15% year-over-year. Operating profit also rose 2% to $103 million.

Total revenue dipped slightly, down 1% to $1.28 billion, but executives insisted the Sweeney campaign had more than offset sluggish store traffic. “The fall season is off to a positive start,” CEO Jay Schottenstein told investors. “Fueled by stronger product offerings and the success of recent marketing campaigns with Sydney Sweeney and Travis Kelce, we have seen an uptick in customer awareness, engagement and comparable sales.”

Indeed, the company credited Sweeney and Kelce’s partnerships with generating a staggering 40 billion impressions to date. While Kelce’s collaboration — announced the day after his engagement to pop superstar Taylor Swift — earned attention, analysts and traders alike told The New York Post that Sweeney was the clear breakout star.

For a company long seen as fading from the forefront of youth culture, American Eagle’s gamble on Sweeney reflects an industry-wide shift toward celebrity-powered marketing. The brand is leaning heavily into personality-driven campaigns in hopes of staying relevant in an era when traditional retail advertising struggles to capture attention.

The Sweeney campaign, executives said, was designed not merely to sell jeans but to reposition American Eagle as bold, playful, and culturally plugged-in. For now, it appears to be working.

Investors, too, see a winning formula. The double-digit stock surge was hailed as evidence that celebrity-driven campaigns, when paired with solid execution, can deliver outsized returns. One trader told The New York Post the campaign “put American Eagle back on the map overnight.”

Still, the strategy carries risks. Critics warn that controversy-driven campaigns can alienate potential customers as easily as they attract them. The accusations of racial insensitivity, though dismissed by many as overblown, highlight the precarious balance companies must strike between edginess and offense.

Moreover, with Mamdani-style populist politics gaining traction nationally — as The New York Post has covered in the mayoral race — companies that wade into cultural flashpoints often find themselves pulled into partisan firefights they did not anticipate.

Yet American Eagle executives appear undeterred. Brommers confirmed that more collaborations with Sweeney are already in the pipeline for later this year, including campaigns aimed at keeping denim sales hot into the holiday season.

For Sweeney, the campaign cements her status not only as one of Hollywood’s fastest-rising stars but also as a bankable commercial powerhouse. For American Eagle, the campaign may mark the beginning of a new chapter — one where bold gambits, not safe bets, define its strategy in a hyper-competitive retail landscape.

As The New York Post report observed, the company’s resurgence now hinges on whether Sweeney’s star power can sustain momentum beyond the initial shock and buzz. With the holiday shopping season looming and investors newly energized, all eyes will remain on the 26-year-old actress — and on the jeans that made her the unlikely face of American Eagle’s revival.