Stock prices of American Eagle significantly increase by approximately 40% following advertisement campaigns featuring Sydney Sweeney, leading to uproar due to perceived inappropriateness.

American Eagle Outfitters, the popular clothing retailer, has experienced a significant surge in its stock price, with a 39.8% increase on September 4, 2025. This surge was not attributed to the company's September 3 earnings report, which had only caused a 1% increase.

The surge came after management confirmed strong sales momentum tied to recent celebrity campaigns. The well-known personality who led to significant sales growth was actress Sydney Sweeney from the TV series "The White Lotus". Sweeney fronted a denim campaign alongside Kansas City Chiefs tight end Travis Kelce, which generated over 40 billion impressions.

Some items from Sweeney's curated collection sold out within a day, contributing to the surge. The combined campaigns added more than 700,000 customers to American Eagle within six weeks.

Quarterly revenue was $1.28 billion, $40 million above consensus estimates. Gross margin rose slightly to 38.9%, and diluted earnings per share increased 15% to $0.45.

However, analysts remain cautious due to American Eagle's high valuation (trading at nearly 17x forward earnings) compared to peers like Abercrombie & Fitch (8x) and Urban Outfitters (12x). One analyst, Running Point Capital's Michael Ashley Schulman, reiterated an "Underperform" rating, citing potential margin pressures from tariffs despite near-term strength.

Short interest is above 18%, indicating ongoing bearish sentiment. Despite this, the campaign is ongoing and will expand with new elements.

Craig Brommers, from American Eagle, highlighted the campaign's effectiveness, noting significant new customer acquisitions and brand engagement. Pre-market trading on September 5 suggested continued buying interest.

As of now, American Eagle's market capitalization stands near $3.26 billion. The stock opened at $13.62 and closed at $18.79 on the New York Stock Exchange.

Reports have resurfaced about the Republican voter registration of the campaign's celebrity face, Sydney Sweeney, in Florida. However, she has not publicly addressed this matter.

In conclusion, American Eagle's successful celebrity-led campaign has driven a significant surge in its stock price, despite ongoing bearish sentiment and high valuation concerns. The company continues to expand its campaign and looks forward to future successes.