American Eagle rallies again after launching second Sydney Sweeney campaign

American Eagle Outfitters

15/04/2026 14:10

April 15 (Reuters) - American Eagle Outfitters AEO.N 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.

Shares of the company rose 5% in premarket trading after the announcement.

American Eagle is partnering with Sweeney for its summer season denim shorts collection that includes low-rise shorts and super low-rise micro "skorts".

The first ad with the actress, called "Great Jeans", faced social media criticism, but has helped the company's shares rise 77% since it was launched in July 2025.

Revenue also jumped 37% in the six months through January after the first campaign was launched, compared with a 24% rise in the same period a year earlier.

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.

The new campaign, called "Syd for Short: American Eagle Jean Shorts," is the denim retailer's latest effort to boost demand as it navigates lingering pressure from tariff-linked costs.

American Eagle in March forecast annual sales above estimates, helped by marketing-driven demand for its apparel and accessories from affluent shoppers.

The "Great Jeans" campaign was rolled out just a couple of months after American Eagle pulled its annual targets citing pressure from tariff-related costs.

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

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

((Sanskriti.Shekhar@thomsonreuters.com))