Sydney Sweeney Ad Draws Fire and Fans
American Eagle’s recent marketing campaign featuring Sydney Sweeney has been described by the company as its “best” advertising effort to date. While the campaign stirred controversy, including backlash from both political ends over its slogan “Sydney Sweeney has great jeans,” it delivered substantial results. The campaign drove denim sellouts and double-digit traffic growth. The company also reported the rapid sellout of both the Sydney Jacket and the Sydney Jean, the latter of which donated proceeds to the Crisis Text Line.
Despite criticism over sexualized advertising, the campaign launched at the tail end of Q2 has led to a mid-single-digit rise in comparable sales. American Eagle gained 700,000 new customers, with August traffic remaining strong across channels. The marketing bet, though polarizing, brought attention and results during a crucial sales season.
Partnership With Travis Kelce Boosts Sales
The momentum continued with a high-profile partnership with Travis Kelce, launched right after the NFL star announced his engagement to Taylor Swift. According to American Eagle, the Kelce campaign generated triple the sales of past partnerships in a single day. Items worn by Kelce and fellow athletes sold out rapidly, showing that American Eagle’s celebrity-driven marketing strategy is resonating.
CEO Jay Schottenstein confirmed that the company is seeing increased brand engagement and customer awareness thanks to these bold campaigns. He stated, “The fall season is off to a positive start,” driven by stronger products and high-impact marketing.
Q2 Financial Results Exceed Expectations
American Eagle reported earnings of 45 cents per share, far surpassing the 21 cents expected by analysts. Revenue hit $1.28 billion, just ahead of the $1.24 billion forecast, though slightly below last year’s $1.29 billion. Net income was reported at $77.6 million.
The company reissued its full-year guidance after previously withdrawing it. Comparable sales are now expected to be roughly flat, outperforming analyst expectations of a small decline. However, gross margins will remain under pressure, and full-year operating income was revised downward to a range of $255 million to $265 million due to tariff headwinds, compared to the earlier estimate of up to $375 million.
Competition and Tariff Concerns Remain
American Eagle continues to face stiff competition from retailers like Abercrombie & Fitch, Gap, and Levi’s. Gap recently launched its “Better in Denim” campaign with Katseye, while Levi’s features Beyoncé and Abercrombie has leaned into sports via NFL collaborations. These competitive pressures make strong marketing essential.
Meanwhile, the company is working to reduce its reliance on Chinese manufacturing to under 10%. However, with operations in Vietnam and India, reciprocal tariffs remain a concern, further straining profitability. Still, American Eagle’s aggressive push for cultural relevance through celebrity-led campaigns may help it weather the economic headwinds.
