Sydney Sweeney helped send American Eagle shares soaring and generated millions of social media views with her headline-grabbing denim campaigns.
But despite the Hollywood star’s viral appeal, the retailer has now revealed a troubling reality: sales in one of its most important categories are falling.
The clothing giant disclosed this week that comparable sales at its flagship American Eagle brand dropped 2 percent during the latest quarter, driven largely by weakness in women’s bottoms – the very category Sweeney was hired to promote.
The disappointing update marks a sharp reversal from the excitement that surrounded the actress’s partnership with the retailer.
Just months ago, Wall Street was celebrating after American Eagle unveiled a fresh campaign starring the Euphoria beauty. Shares surged as investors bet Sweeney’s star power could reignite growth at the teen apparel chain.
The company had good reason for its optimism.
American Eagle’s first blockbuster collaboration with Sweeney, dubbed the ‘Great Jeans’ campaign, became one of the retailer’s biggest marketing successes in years.
Executives previously said the partnership attracted around one million new customers, while some featured products reportedly sold out within days. The campaign generated more than 150 million social media views and helped propel the retailer’s stock higher during the second half of last year.
Sydney Sweeney helped send American Eagle shares soaring and generated millions of social media views with her headline-grabbing denim campaigns
Despite the Hollywood star’s viral appeal, the retailer has now revealed a troubling reality: sales in one of its most important categories are falling (Pitured: Sydney Sweeney and American Eagle CEO Jay L. Schottenstein at the New York Stock Exchange)
A follow-up campaign released earlier this year, called ‘Syd for Short,’ once again featured the actress modeling denim cutoffs in a series of beachside advertisements.
Investors initially loved it.
American Eagle shares jumped nearly 9 percent after the campaign’s launch as hopes grew that Sweeney could once again work her marketing magic.
Yet the latest earnings suggest translating viral buzz into sustained sales growth may be proving more difficult.
‘We are not satisfied with where the business performed this quarter, especially in women’s,’ American Eagle President and Chief Creative Officer Jen Foyle told analysts during the company’s earnings call.
‘We know what needs to be corrected, and the teams are aligned and activated to return AE to growth.’
According to the company, sales weakness was concentrated in women’s bottoms, while the men’s business performed considerably better.
Foyle said the retailer is now refining its product assortment and preparing fresh inventory ahead of the crucial back-to-school shopping season.
The clothing giant disclosed this week that comparable sales at its flagship American Eagle brand dropped 2 percent during the latest quarter, driven largely by weakness in women’s bottoms – the very category Sweeney was hired to promote
Analysts at TD Cowen said the problems went beyond consumer demand.
They argued American Eagle misjudged which styles shoppers wanted, leaving the retailer without enough inventory in its most popular fits and silhouettes.
The firm also pointed to weaker in-store conversion rates, markdown pressure and even unfavorable weather as factors weighing on performance.
The disappointing results come after months of controversy surrounding Sweeney’s advertising campaigns.
Last year’s ‘Great Jeans’ promotion generated significant backlash online after critics seized on a marketing message referencing genetics. Some social media users went so far as to accuse the campaign of promoting problematic themes, sparking a viral debate that quickly spread beyond the fashion industry.
Even President Donald Trump weighed in on the controversy at the time, joking: ‘If Sydney Sweeney is a registered Republican, I think her ad is fantastic.’
Despite the criticism, the campaign appeared to succeed commercially, helping restore relevance to a retailer that had struggled to stand out in an increasingly crowded apparel market.
The latest figures suggest the challenge now lies less in grabbing attention and more in converting that attention into consistent sales growth.
Scooter Braun posted a video of Sydney Sweeney on May 31, 2026, with the caption, ‘When you’re in bed at 11pm and your girl says “I’ve never been to Times Square”‘
The retail giant first teamed up with Sweeney last July for its headline-grabbing ‘Great Jeans’ campaign – a viral smash that helped send shares more than doubling by the holiday season
There was at least one bright spot in the earnings report.
American Eagle’s intimates and activewear brand Aerie delivered a standout performance, posting a 25 percent jump in comparable sales.
The division has increasingly become one of the company’s strongest growth engines, aided by its activewear offshoot, Offline.
Analysts at UBS said investors may still be underestimating the potential of the brand, noting that Offline currently operates 117 locations and could eventually expand significantly further.
Overall, American Eagle Outfitters reported first-quarter revenue of $1.2 billion, up 10 percent from a year earlier.
But for a retailer that has leaned heavily on one of Hollywood’s hottest stars to sell denim, the headline number investors are likely to focus on is far less flattering.
After all the hype, all the viral videos and all the social media buzz, sales of women’s bottoms – the category Sydney Sweeney was brought in to help revive – are moving in the wrong direction.
