American Eagle Outfitters Soars as Star-Studded Campaigns Impress Gen Z
American Eagle Outfitters' shares soared by 26% after a controversial jeans ad campaign featuring Sydney Sweeney gained attention. Partnering with NFL star Travis Kelce's brand Tru Kolors, they've expanded their reach among young shoppers. Despite backlash, customer counts increased significantly, signaling strong marketing momentum translating into sales.
Shares of American Eagle Outfitters experienced a 26% surge in premarket trading this Thursday, as a result of increased consumer interest driven by an ad campaign starring actor Sydney Sweeney. Despite facing social media backlash for perceived racial undertones, the campaign has been highly successful, according to Chief Marketing Officer Craig Brommers, who highlighted "unprecedented new customer acquisition."
Further boosting its market presence, American Eagle has strategically partnered with NFL star Travis Kelce's clothing line Tru Kolors, drawing more young shoppers to the brand. The company announced a rise in customer numbers by over 700,000 since the launch of the campaigns, amassing 40 billion ad impressions.
Amid economic challenges, the retailer is focusing on celebrity-led campaigns to attract Gen Z consumers. Lale Akoner of eToro noted that the robust marketing momentum translated into strong sales, alleviating execution concerns. As holiday seasons approach, American Eagle plans to continue leveraging these campaigns, projecting stable annual sales.
(With inputs from agencies.)
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