American Eagle's Shares Soar as Sydney Sweeney Ads Boost Sales
Shares of US fashion retailer American Eagle Outfitter jumped 25% in late trading on Wednesday, following the company's announcement that its tie-ups with celebrities Sydney Sweeney and Travis Kelce are expected to drive strong sales between July and September. According to Osmond Chia, a business reporter for BBC News, the surge in shares was driven by American Eagle's second-quarter performance exceeding expectations.
The company's boss, Jay Schottenstein, attributed the success to stronger product offerings and the success of recent marketing campaigns with Sweeney and Kelce. "Fuelled by stronger product offerings and the success of recent marketing campaigns with Sydney Sweeney and Travis Kelce, we have seen an uptick in customer awareness, engagement and comparable sales," Schottenstein said.
American Eagle made headlines earlier this year with a divisive "Great Jeans" ad for its denim line featuring Sweeney. The commercial sparked a debate over race and beauty standards, but it appears to have had the opposite effect on sales. According to Natalie Sherman, a business reporter for BBC News, the ad campaign was seen as driving sales, with American Eagle's stocks surging in after-hours trading.
The company also announced a collaboration with athlete Kelce, just days after news broke of his engagement to pop star Taylor Swift. The fall season is off to a positive start, according to Schottenstein, who said that the company is "fuelled by stronger product offerings and the success of recent marketing campaigns."
Sweeney's appearance in the jeans advertisement drew intrigue and offense, with some critics accusing the company of cultural insensitivity. However, it appears that the ad campaign has had a positive impact on sales, with American Eagle reporting an uptick in customer awareness and engagement.
American Eagle's success is not isolated to its marketing campaigns. The company has been investing heavily in e-commerce and digital marketing, which has paid off in recent quarters. According to Chia, the company's second-quarter performance exceeded expectations, driven by strong sales growth and a successful ad campaign.
As American Eagle continues to ride the wave of success, industry experts are taking note. "American Eagle's ability to adapt to changing consumer trends and preferences is paying off," said one analyst. "Their focus on digital marketing and e-commerce has allowed them to reach a wider audience and drive sales growth."
In conclusion, American Eagle's shares soar as Sydney Sweeney ads boost sales, driven by the company's successful marketing campaigns and strong product offerings. With the fall season off to a positive start, it remains to be seen whether the company can maintain its momentum in the coming quarters.
Attribution:
Osmond Chia, business reporter for BBC News
Natalie Sherman, business reporter for BBC News
Jay Schottenstein, boss of American Eagle Outfitter
This story was compiled from reports by BBC Business and BBC Business.
