Shares of American Eagle Outfitters surged by 34% on Thursday after the teen clothing brand revealed that its summer ad campaign featuring actress Sydney Sweeney led to a significant boost in customer acquisition and brand awareness. The campaign, which sparked conversations around beauty standards and reactions to “woke” culture, has proven to be a game-changer for the company.
What Happened
The campaign, which cleverly used the word “genes” in place of “jeans” and featured the blonde-haired, blue-eyed Sweeney, known for her roles in Euphoria and White Lotus, garnered mixed reactions. Some critics questioned its messaging, but despite the controversy, American Eagle reported a record-breaking increase in new customers across various demographics during the past quarter.
CEO Jay Schottenstein shared during the company’s recent earnings call that the campaign significantly boosted brand awareness. “We saw record-breaking new customer acquisition across different ages and demographics,” Schottenstein stated, highlighting the success of the campaign in attracting a broad audience.
Who Is Sydney Sweeney
Sydney Sweeney, a rising star in Hollywood, is best known for her roles in Euphoria and White Lotus. As a highly popular and versatile actress, she became the face of American Eagle’s latest campaign, helping the brand reach a new generation of customers. Her widespread fame and appeal have helped amplify the campaign’s reach, despite some criticism regarding its messaging.
Background or Timeline
American Eagle’s decision to feature Sweeney in their ad campaign has paid off, with a significant increase in traffic and customer acquisitions throughout the second quarter and into August. As a result, the company revised its earlier projections for the upcoming quarters, now expecting comparable-store sales to rise slightly. This is a stark contrast to earlier concerns about global economic uncertainties, with the campaign providing a much-needed boost.
The brand also benefited from another high-profile campaign featuring NFL star Travis Kelce, whose recent engagement garnered significant attention. These high-profile partnerships have allowed American Eagle to stay relevant and attract younger customers, keeping momentum strong despite challenges faced earlier in the year.
Public or Social Media Reaction
While some critics expressed discontent with the use of the wordplay in the ad and questioned the representation of beauty standards, others praised the campaign for its boldness. American Eagle maintained that the primary focus of the campaign was to showcase their clothing and not make any statements about race or culture. The overall reaction was mixed, but the sales and increased customer traffic indicated that the controversy did not significantly harm the brand’s performance.
Official Statement or What Happens Next
Despite the mixed reactions, analysts suggest that the Sweeney campaign helped boost American Eagle’s visibility and customer base, fueling the company’s positive momentum. With a slight revenue decline of 1% in the last quarter, American Eagle plans to build on this success by continuing their partnership with Sydney Sweeney and introducing new elements to the campaign as they move into the later part of the year.
American Eagle’s shares have increased by 10% this year, and the recent 34% surge following the success of the campaign indicates a promising outlook for the company in the coming months.
This story may be updated with more information as it becomes available.
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