American Eagle rallies again after launching second Sydney Sweeney campaign

April 15 (Reuters) - 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.

American Eagle's shares rose nearly 6% to $18.80 in early ⁠trading after the denim maker 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 actress, called "Great Jeans", faced social media criticism over perceived racial undertones, but has helped its shares rise ​77% since it was launched in July 2025. Revenue also jumped 37% in the six months through January, compared with a 24% rise in the ⁠same period a year earlier.

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

Credit and debit card data suggests last summer's Sweeney campaign was more than just a short-term boost ​for American Eagle, with spending rising more among ‌Republican consumers, according to Michael Gunther, SVP, Research & 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 American Eagle'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 of last ‌close, its shares were down about 28% this year.

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 last year citing pressure from tariff-related costs.

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

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