Decline in American Eagle Sales Following Sydney Sweney Endorsement Ad Campaign

American Eagle's latest advertising campaign, which debuted on July 23 and featured actress Sydney Sweeney, has been credited with boosting brand awareness across all ages and genders. However, the impact on sales has been less clear, with the company still assessing the full effects, particularly during the back-to-school shopping period.

The campaign, known as the "Great Jeans" campaign, was a part of American Eagle's efforts to boost sales and brand awareness. According to Jay Schottenstein, American Eagle's CEO, the campaign successfully increased brand awareness, but its impact on sales is not definitively known due to the timing of the campaign.

The earnings period ending on Aug. 2 preceded the campaign's debut, and the sales data for the 13-week period ending Aug. 2 showed a slight drop of 1 percent compared to the same period the previous year. However, it's worth noting that American Eagle's sales drop was less than expected, as demand grew over the quarter.

The strong brand awareness generated by the campaign is evident in the company's financial performance. American Eagle's operating profit increased 2 percent, and the company's stock price has risen about 13 percent this year. The shares surged 38 percent to $18.79 on Thursday following an earnings call.

Meanwhile, competitor Abercrombie & Fitch Co.'s shares were trading at $95 on Friday.

The "Great Jeans" campaign was not without controversy, with critics accusing it of promoting white beauty standards. However, the impact of these criticisms on the campaign's success is unclear.

MarketScreener reported that the campaign significantly boosted American Eagle's sales. The source states that the campaign resulted in a 10 percent stock increase soon after its start and further gains in early August, driven by strong new customer acquisition and heightened brand appeal during the back-to-school shopping period.

As American Eagle continues to assess the full impact of the Sweeney campaign on sales, particularly during the back-to-school shopping period, it's clear that the campaign has played a significant role in boosting brand awareness and financial performance. The company will undoubtedly continue to monitor the campaign's effects and adjust its strategies accordingly.