American Eagle Stock Soars Following Trump’s Support for Sydney Sweeney Jeans Ad

American Eagle’s ad featuring actress Sydney Sweeney has drawn backlash for language and imagery, with a tagline referencing “great genes” alongside visuals of Sweeney in blue jeans. (Michael M. Santiago/Getty Images))

American Eagle Outfitters stock soared on Monday after President Donald Trump declared his support for the retailer’s jeans campaign featuring actress Sydney Sweeney.

Shares were up nearly 18% in afternoon trading, putting shares on pace for their highest close since May 13. Between the ad’s July 23 release and July 28, the stock climbed about 18%.

Trump told NBC News that he supported the ad campaign after a reporter informed him that Sweeney is a registered Republican.

In a Monday morning post on Truth Social, the president called the ad the “hottest” one out there.

“It’s for American Eagle, and the jeans are ‘flying off the shelves,’” he wrote. “Go get ‘em Sidney!”

The campaign sparked a backlash on social media. Users have said the catchphrase “Sydney Has Great Jeans” promotes “white supremacy” and “eugenics” because American Eagle presented only Sweeney, who has blond hair and blue eyes.

About a week after the ad’s release, the stock tumbled nearly 11% for four straight trading days.

What added more fuel to the fire was the ad’s YouTube teaser video, which features Sweeney—dressed in head-to-toe blue denim—saying: “Genes are passed down from parents to offspring, often determining traits like hair color, personality and even eye color. My jeans are blue.”

American Eagle has said the campaign is solely about jeans.

“We’ll continue to celebrate how everyone wears their AE jeans with confidence, their way,” the denim maker said in a Friday post on Instagram. “Great jeans look good on everyone.”

The controversy has bled into both online sales and Web traffic. Sales fell year over year from 17.5% the week of July 20 to nearly 11% the week of July 27, according to data from Bloomberg Second Measure. Web visits rose 19% the week the ad was released, but climbed just 7% the following week.

As part of the campaign, which mainly targets for Gen Zers, American Eagle will roll out new designs, including a limited edition denim jacket and jeans inspired by Sweeney and over 800 new fall styles, the retailer said.

Before the backlash, the ad sparked questions over whether American Eagle would morph into a meme stock.

As of late, the retailer has struggled with slipping sales and weaker profitability. This year will be the most challenging for American Eagle, but Wall Street analysts expect both sales and earnings to increase over the next 24 months.

Trump’s endorsement has triggered a stock surge. But how long will it last?

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