A controversial American Eagle ad featuring actress Sydney Sweeney has sent the retailer’s stock soaring after a viral moment—and an unexpected endorsement from US President Donald Trump. The denim campaign, which launched in July, triggered a 10% bump in stocks. But on August 4, Trump’s public praise supercharged the buzz, sending American Eagle shares up 23% in a single day. The ad’s focus on “genes”—paired with Sweeney’s blonde hair and blue eyes—has sparked backlash online for alleged eugenics and white supremacist imagery.
Still, Trump’s support and retail hype added nearly $200 million to the company’s value in just one session. American Eagle, which posted an $85 million loss in Q1 and forecasted a 5% revenue dip, suddenly found new life through denim, drama, and the President’s megaphone.
The Ad With “Great Jeans”—And Greater Controversy
The ad shows Sydney Sweeney in American Eagle jeans and a denim jacket, stating: “Genes are passed down from parents to offspring, often determining traits like hair colour, personality and even eye colour. My jeans are blue.” The camera then zooms into her blue eyes.
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Reactions to the wordplay were immediate. While many viewed it as a harmless pun, others charged that the advertisement promoted damaging beauty standards and exalted eugenics. Online outrage followed the choice of a blonde, blue-eyed actress, with some claiming that the messaging was problematic and reminiscent of Nazi-era terminology.
From Loss to Lift—Ad Sends American Eagle Stock Soaring
Before the campaign, American Eagle’s future looked uncertain. In May, the company withdrew financial guidance and warned of a 5% revenue drop. Its Q1 results showed an $85 million operating loss and a steep decline in gross margins, from 40.6% to 29.6%.
But after the Sweeney campaign launched in July, shares jumped 10%. When Trump endorsed the ad on Truth Social on August 4, the stock soared another 23%, fueled by retail traders and political buzz. Vanity Fair reported that the company’s market value shot up by nearly $200 million in one session.
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From Politics to Denim Cheerleader
On Truth Social, Trump posted:
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!”
He added a jab at pop star Taylor Swift, calling her the “woke singer” who is “NO LONGER HOT.”
Later, speaking from Air Force One, Trump doubled down:
“She’s a registered Republican? Oh, now I love her ad. If Sydney Sweeney is a registered Republican, I think her ad is fantastic.”
The remarks instantly mobilised his base, boosting online support and market interest in American Eagle.
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Brand Response and Public Defense
American Eagle stood by the ad. In a statement, the company said:
“‘Sydney Sweeney Has Great Jeans’ is and always was about the jeans. Her jeans. Her story. We’ll continue to celebrate how everyone wears their AE jeans with confidence, their way. Great jeans look good on everyone.”
When Politics and Pop Culture Drive Retail Valuations
The real story may lie beyond the stock spike. Trump’s praise highlights how culture wars and political endorsements now directly impact retail performance. A single post from the President—driven by identity politics and partisan loyalty—can create a near-instant trading frenzy.
Sweeney’s registered Republican status turned a cheeky ad into a partisan win. As brands compete in polarized times, viral moments and political affiliations are becoming tools for economic revival.
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From Viral Ad to Wall Street Buzz
American Eagle, founded in 1977 and long a mall staple, found itself fading from the retail spotlight. Yet, in just weeks, a denim ad, a backlash, and a Trump thumbs-up brought it roaring back into relevance—and profitability. The fashion may be classic, but the strategy is anything but.
