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From Outrage to Opportunity: American Eagle turns backlash into sales boom
American Eagle’s controversial Sydney Sweeney campaign and Travis Kelce collaboration sparked 7,00,000 new customers, 40 billion impressions, and a 33% stock surge. Despite backlash, celebrity-driven marketing is boosting Gen Z demand, with momentum expected to fuel holiday season sales.
The Sweeney campaign, titled “Sydney Sweeney Has Great Jeans,” drew social media backlash over perceived racial undertones. Yet the controversy appears to have worked in the brand’s favor
American Eagle Outfitters is proving that controversy sells and sells big. The U.S. retailer’s shares soared 33% on Thursday after a storm of attention around its bold marketing bets, headlined by a campaign with Euphoria star Sydney Sweeney and a high-profile collaboration with NFL player Travis Kelce.
The Sweeney campaign, titled “Sydney Sweeney Has Great Jeans” drew social media backlash over perceived racial undertones. Yet the controversy appears to have worked in the brand’s favor, with American Eagle Chief Marketing Officer Craig Brommers saying the campaign delivered “unprecedented new customer acquisition”, Reuters reported.
“Sydney will be part of our team as we get into the back half of the year, and we’ll be introducing new elements of the campaign,” Brommers said during the company’s post-earnings call.
The retailer also capitalized on cultural buzz around Kelce, who has drawn global attention for his relationship with Taylor Swift by launching a collaboration with his lifestyle brand Tru Kolors. Together, the celebrity partnerships have added more than 7,00,000 new customers and generated 40 billion ad impressions, according to the company.
Reuters reported, market analysts say the campaigns helped boost confidence in American Eagle’s execution at a time when shoppers are pulling back amid economic uncertainty. Looking ahead, analysts expect American Eagle to lean even harder on star power during the crucial holiday season.
SPOTLIGHT
The leaders highlighted how AI is emerging as a critical enabler in this shift from marketing’s traditional focus on new customers to a more sustainable model of driving growth from existing accounts.
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