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American Eagle is counting its controversial Sydney Sweeney ad as a win.
CEO Jay Schottenstein said he considered the campaign a “success” as the company beat analyst expectations for the second quarter on Wednesday.
The apparel brand said the “great jeans” marketing campaign starring Sweeney, launched in late July, has helped drive an “uptick in customer awareness, engagement, and comparable sales.”
“The iconic fall denim campaign with Sydney Sweeney confirms we are the American jeans brand,” Schottenstein said during Wednesday’s earnings call.
American Eagle’s earnings rose 15% year over year to 45 cents per share during its second quarter that ended August 2, while net revenue fell 1% to $1.28 billion. Comparable sales across the company, which also owns Aerie, fell 1%.
The stock soared 24% in after-hours trading as the company reported earnings.
The “great jeans” ad campaign sparked conversations that expanded past denim, but the company said it ultimately helped attract new customers. Sweeney’s signature jeans sold out within a week, and some products sold out in one day.
“Sydney Sweeney sells great jeans. She is a winner, and in just six weeks, the campaign has generated unprecedented new customer acquisition,” chief marketing officer Craig Brommers said during the call.
The ad wasn’t well-received by everyone, however. When the campaign dropped, it was met with criticism for promoting “regressive” beauty standards and eugenics. American Eagle stuck by the ad in a statement earlier this month.
“‘Sydney Sweeney has Great Jeans’ is and always was about the jeans,” the company said August 1, in a statement on Instagram.
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It looks like the bet on Sweeney paid off. The company boasted the best Labor Day in its history and results beyond its “wildest dreams.”
American Eagle followed Sweeney’s campaign in August with another celebrity partnership aimed at boosting its men’s business.
On August 27, American Eagle released a clothing line in collaboration with NFL star Travis Kelce and his Tru Kolors brand. The collection came out one day after Kelce announced his engagement to global pop star Taylor Swift.
American Eagle shouted out Kelce and Sweeney’s star power on the earnings call.
“These two signature collaborations have generated a strong response driven by limited edition merchandise, demonstrating the power of celebrity style and great product,” chief financial officer Jen Foyle said.
Despite the recent wins, some analysts have questioned whether American Eagle can keep up the momentum. American Eagle wrote in late August that there wasn’t a “high likelihood” the Sweeney campaign could “inflect the business over the long run.”
Nevertheless, Brommers said the Sweeney campaign “is not going anywhere” and that new elements of the campaign are coming.
Kelce’s line is also “just getting going,” with a second drop planned for the NFL season, Brommers said.
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