New Sydney Sweeney Ads Lift American Eagle 6%

American Eagle Outfitters shares jumped Wednesday after the denim retailer unveiled a second campaign with "Euphoria" star Sydney Sweeney, a year after the first campaign featuring the actress fueled a stock rally.

American Eagle's shares (AEO) rose 6.53% to $18.93 in midday trading at 11:45 a.m. EST after the ‌denim maker launched a new ad with Sweeney for its summer ​season denim shorts collection, which includes low-rise shorts and super low-rise micro "skorts."

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

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

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

Credit and debit card data suggests last summer's ​Sweeney campaign was more ‌than just a short-term boost for American Eagle, with spending rising more among Republican consumers, according to Michael Gunther, ‌SVP, research & market intelligence at Consumer Edge.

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, ⁠even as lower- and middle-income consumers struggle to afford essentials.

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

The company ‌sources most of its products from vendors in Asia, according to its latest annual filing, and as of last close, its shares were down about 28% this year.

However, American ‌Eagle forecast ​annual sales above estimates and ‌reported a blowout holiday quarter in March as marketing and campaigns with celebrities such as Sweeney drove demand.

The "Great Jeans" campaign was rolled out ​just a couple of months after the company pulled its annual targets last year citing pressure from tariff-related costs.