American Eagle Stock Surges After Trump Praises Sydney Sweeney Ad
- The New York Editorial Desk - Arif
- Aug 4
- 2 min read
Tone & Political Bias: Moderately Right-Leaning
Why: The article centers on support from Donald Trump and conservative voices, while progressive criticism is mentioned but not explored in depth.
What Happened
American Eagle’s stock experienced a sharp rally on Monday after President Donald Trump praised the company’s new denim advertisement featuring actress Sydney Sweeney. The ad, which plays on the words “jeans” and “genes,” quickly went viral online, sparking both backlash and support across political and cultural lines.
The Ad Campaign
The campaign, titled “Sydney Sweeney Has Great Jeans,” uses a pun to link Sweeney’s fashion to genetics. In the ad, the actress explains, “Genes are passed down from parents to offspring... My jeans are blue.”
This wordplay attracted criticism from some social media users, particularly on TikTok and X (formerly Twitter), who claimed the ad implied eugenics-related themes. Despite the backlash, many conservative commentators defended the ad as a pushback against what they see as excessive political correctness in modern marketing.
Trump’s Involvement and Market Response
Donald Trump fueled the conversation by posting on Truth Social, calling the ad the “HOTTEST” on the market and praising it as a contrast to the “woke” campaigns of brands like Budweiser and Jaguar. He also commented that American Eagle’s jeans were “flying off the shelves,” a claim that coincided with a significant rise in the company’s stock.
By midday Monday, shares of American Eagle had jumped more than 20%, reflecting investor optimism driven by the cultural attention and Trump’s endorsement.
Company Struggles and Financial Outlook
While the stock’s sudden rally marked a rare win for American Eagle, the company has faced a difficult financial year. Its stock was down more than 20% before Monday’s gains. In its first-quarter results, American Eagle reported an $85 million loss and a 3% drop in sales.
In May, the company withdrew its full-year financial guidance, citing ongoing economic uncertainty, and warned that sales were expected to decline further in the current quarter.
Tariff Concerns and Political Impact
Despite the stock surge tied to Trump’s praise, the president’s trade policies may pose a threat to the retailer’s bottom line. American Eagle’s Chief Financial Officer Michael Mathias said during a May earnings call that tariffs could cost the company as much as $40 million. These costs add additional pressure on the company’s efforts to stabilize its operations and restore profitability.
Company and Celebrity Reactions
American Eagle has not issued a statement directly addressing the impact of Trump’s endorsement or the backlash surrounding the ad. However, in a previous comment last week, the company clarified that the campaign “is and always was about the jeans.” Sydney Sweeney’s team has not responded to requests for comment regarding the ad or the surrounding controversy.
Why It Matters
The viral success and political attention surrounding the ad show how commercial campaigns can quickly become cultural flashpoints. Trump’s endorsement helped American Eagle temporarily rebound in the stock market, but the company continues to face structural challenges.
The situation also highlights how political figures can influence corporate narratives and investor behavior, especially when marketing intersects with broader social and ideological divides.
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