The clothing company raised its outlook for comparable sales growing in a range of 8 to 9 percent.
American Eagle expects fourth-quarter sales to grow at an even higher rate after its controversial Sydney Sweeney jeans ad captured national attention. The clothing company raised its outlook for comparable sales growing in a range of 8 percent to 9 percent, up from the low single digits originally anticipated.
Why It Matters Sweeney’s jeans ad with the brand sparked backlash over its content, including a voice-over saying, “Sydney Sweeney has great jeans”—as some felt “jeans” as a play on the “genes” discussed by the Euphoria actress earlier in the spot—promoted white supremacy viewpoints. “Genes are passed down from parents to offspring, often determining traits like hair color, personality and even eye color. My jeans are blue,” Sweeney said in the ad. While many Americans supported the ad, others fell out of favor with the brand. But the attention the ad garnered appears to have helped boost sales in the meantime, based on statements from the company. A display of actress Sydney Sweeney is seen on an American Eagle storefront in New York City on August 1. What To Know American Eagle’s guidance for operating income increased to a range of $155 million to $160 million, up from $125 million to $130 million in the previous prediction. Over the last six months, the company’s stock has skyrocketed 136 percent. “I’m extremely pleased with the significant trend change across our business reflecting decisive steps taken from merchandising to marketing to operations – all having a positive impact,” American Eagle Outfitters CEO Jay Schottenstein said. Revenue for the brand was up 6 percent in the third quarter, with total comparable sales increasing by 4 percent. Beyond the Sweeney jeans campaign, the outlook boost also came as a result of an uptick in lingerie sales from its brand Aerie, which saw comparable sales grow 11 percent. Aerie’s commitment to not using artificial intelligence also garnered tens of thousands of likes in a pledge posted to Instagram. Schottenstein previously defended the Sweeney ad, telling The Wall Street Journal, “You can’t run from fear. We stand behind what we did.” He added that “we never would’ve done it” if the team felt it was offensive. “The iconic fall denim campaign with Sydney Sweeney affirms we are the American jeans brand,” Schottenstein said in his new earnings forecast. “We saw record-breaking new customer acquisition and brand awareness cutting across age demographics and genders.” What People Are Saying Schottenstein also said: “We delivered a record-breaking Thanksgiving weekend, led by an acceleration in demand across brands and channels and underscored by outstanding growth at Aerie and Offline. We are focused on finishing the season strong and sustaining our success into 2026 and beyond.” Alex Beene, financial literacy instructor for the University of Tennessee at Martin, to Newsweek: “At a time when many brands are struggling with consumer demand due to inflationary pressures, American Eagle has bucked the trend. Their forecast of an increase of nearly 9 percent in sales year-over-year is impressive, especially in the current economic environment for many retailers. As to how much Sydney Sweeney’s ad campaign contributed to that rise, it’s always difficult to say.” What Happens Next While it’s unclear exactly how the Sweeney ad affected consumer sentiment and sales volumes, American Eagle is forging ahead with its expectation of comparable sales growing in a range of 8 percent to 9 percent. “Clearly the campaign generated more attention to the brand, but without any firm data on customer reasoning for their purchases, it’s hard to say whether her involvement led to the full 9 percent jump, 4 percent of it, or had little to no part at all,” Beene said.
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