Shares of American Eagle surge after Trump calls Sydney Sweeney campaign 'hottest ad out there'
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Shares of American Eagle surged after President Donald Trump called its campaign with Sydney Sweeney the "hottest ad out there."
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August 4, 2025
03:30 PM
CNBC
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In this articleAEO your favorite stocksCREATE FREE ACCOUNTA window display of actress Sydney Sweeney is seen on a window of an American Eagle store on August 01, 2025 in New York City
Santiago | Getty Imagess of American Eagle surged more than 15% on Monday after President Donald Trump complimented the retailer's marketing campaign with actress Sydney Sweeney."Sydney Sweeney, a registered Republican, has the 'HOTTEST' ad out there
It's for American Eagle, and the jeans are 'flying off the shelves.' Go get 'em Sydney!" Trump wrote on his social media site Truth Social not long after opened
Shortly after Trump's post, s of American Eagle surged, and just before 11 a.m
ET, were still trading more than 15% higher
Monday's gains come a little over a week after American Eagle first announced that the "Euphoria" star would headline its fall marketing campaign with the slogan: "Sydney Sweeney has great jeans."Initially, the stock surged in an apparent bout of meme stock mania, but over the past week, s of the company have been down as American Eagle has faced criticism that the campaign was sexist and out of touch
That slump rebounded on Monday when Trump weighed in on the discourse.As of Friday's close, s of American Eagle were down more than 27% so far this year as the company grapples with larger macroeconomic concerns related to tariffs, consumer spending and its own merchandising missteps
Earlier this year, the company said it would take a $75 million write-down in spring and summer merchandise after it pulled its full-year guidance due to slow sales, steep discounting and a volatile macroeconomic environment.For its current quarter, American Eagle said in May that it expects revenue to fall 5%, comparable sales to be down 3% and gross margin to be lower compared with the prior year
Its operating income for the second quarter is expected to be between $40 million and $45 million.The impact the Sweeney campaign is having on its sales, for better or worse, remains to be seen.
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