American Eagle Outfitters shares jumped about 6.5% on Wednesday after the retailer launched a new campaign featuring "Euphoria" star Sydney Sweeney, building on the momentum of a previous viral ad.
The stock rose to around $18.80 in early trading following the release of the summer campaign, which promotes the company’s denim shorts collection, including low-rise and micro “skort” styles.
The new campaign, titled “Syd for Short: American Eagle Jean Shorts,” marks the company’s second major collaboration with Sweeney. Its earlier campaign, “Great Jeans,” sparked controversy over perceived racial undertones but drove strong results.
Since that campaign launched in July 2025, American Eagle’s shares have climbed about 77%. Revenue rose 37% in the six months through January, compared with a 24% increase in the same period a year earlier.
Credit and debit card data suggests the campaign had a lasting impact, with spending rising more among Republican consumers, according to Michael Gunther, senior vice president of research and market intelligence at Consumer Edge.
Last year, U.S. President Donald Trump weighed in on the ad, telling reporters, “If Sydney Sweeney is a registered Republican, I think her ad is fantastic.”
Retailers including American Eagle and handbag maker Tapestry have increasingly relied on celebrity partnerships to attract higher-spending Gen Z consumers, even as lower- and middle-income shoppers face pressure from rising costs.
The company is also navigating ongoing tariff-related challenges. American Eagle sources much of its merchandise from Asia, and its shares remain down about 28% this year despite recent gains.
Still, the retailer has pointed to strong demand driven by marketing campaigns and celebrity collaborations, forecasting annual sales above expectations after a strong holiday quarter reported in March.
The earlier “Great Jeans” campaign was launched shortly after the company withdrew its annual targets, citing pressure from tariffs.