The Sydney Sweeney Effect on American Eagle Outfitters (AEO) Stock

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This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.

American Eagle Outfitters (AEO) recently ran an ad campaign featuring Sydney Sweeney, known for her heart-throb appeal and “great jeans” slogan. The campaign aimed to tap into a broad trend of sexualized marketing but faced controversy and criticism from those who saw it as a regression away from body positivity narratives.

Following the campaign, AEO’s stock price surged, recovering some losses driven by tariffs this year. However, the spike in interest is now fading according to Google Search Trends data over the past 90 days.

Bank of America analysts predict that momentum from this campaign will not significantly impact business performance long-term. AEO has doubled down on its buzz-creating strategy with another recent collaboration between Taylor Swift and NFL star Travis Kelce, but search trends have not shown a noticeable bump.

In a unique start to his ruling against President Donald Trump’s administration on September 30, U.S. District Court Judge William Young included a scanned handwritten note sent to his office. The note read: “Trump has pardons and tanks – what do you have?” At the top of Young’s opinion in AAUP v. Rubio, which ruled that Trump’s effort to deport foreign-born student protesters was unconstitutional.

October 8, 2025

AEO is set to announce its latest quarterly earnings on September 3rd. The narrative around the stock will likely focus on import tariffs and their effect on margins, as management has already acknowledged a $40 million reduction in gross margin for 2025, or about 150 basis points, despite efforts to mitigate impacts.