Trump praise sends American Eagle stock soaring 20% amid Sydney Sweeney ad controversy

American Eagle's stock went up by 20% on Monday after former U.S. President Donald Trump praised the brand's new ad campaign featuring actress Sydney Sweeney. Trump posted on Truth Social, calling Sweeney "a registered Republican" and saying her ad is the "HOTTEST" out there. He also said American Eagle jeans are 'flying off the shelves' and encouraged people to "Go get ’em Sydney!"

Right after Trump’s post, American Eagle shares spiked sharply, and by early afternoon, the stock was still trading 20% higher. American Eagle had launched the Sydney Sweeney campaign just over a week earlier, promoting its fall collection with the line: “Sydney Sweeney has great jeans”, as reported by CNBC report.

Some critics say the ad was too much

At first, the campaign led to a short boost in the stock price, which looked like a meme stock moment, but then shares dropped as the ad received backlash. The controversy came from critics, especially on the far left, who claimed the “great jeans” slogan had a double meaning — suggesting it referred to Sweeney’s genetics, not just denim.


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Others also felt the ad was too sexualized and looked like outdated marketing, which they say no longer fits with today’s audience. American Eagle didn’t say much at first but responded on Instagram on Friday, saying the slogan “is and always was about the jeans”, according to the report by CNBC.

The company added that it will “continue to celebrate how everyone wears their AE jeans with confidence, their way” and that "great jeans look good on everyone." This whole issue shows the tough spot brands are in — choosing the right message for the right audience, especially when people are quick to react online.

Campaign gets attention while sales struggle

The situation has been compared to Bud Light’s past controversy with Dylan Mulvaney, which hurt its image with conservatives. In contrast, American Eagle’s campaign seems to appeal more to the cultural right, especially after Trump’s support. American Eagle has been struggling with low sales, and this campaign with Sweeney is part of their push to turn things around, as stated by a CNBC report.

It’s still unclear if the ad has helped sales, but it definitely brought attention — Google search interest for American Eagle is now the highest it’s been in over 20 years. We’ll know more once American Eagle releases its earnings in the next few weeks. That will show if the search buzz actually led to more jeans being sold.

As of last Friday’s market close, American Eagle shares were down over 27% this year, as the brand deals with big challenges like tariffs, weak consumer spending, and merchandising problems. Earlier this year, the company had to write down $75 million worth of spring and summer products, and even pulled its full-year forecast because of low sales and economic uncertainty, as mentioned by a CNBC report.

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In May, for the current quarter, American Eagle said it expects a 5% drop in revenue, 3% decline in comparable sales, and lower profit margins compared to last year. The company also said it expects its second-quarter operating income to be between $40 million and $45 million, as per the reports.

FAQs

Q1. What did Donald Trump say about Sydney Sweeney's American Eagle ad?
Trump called the ad the “HOTTEST” and said American Eagle jeans are “flying off the shelves” on Truth Social.

Q2. Is the American Eagle ad helping the company’s sales?
It’s too early to tell, but Google searches for American Eagle are at a 20-year high after the ad launched.