Yahoo Finance UK’s Pedro Goncalves writes:
Shares in American Eagle Outfitters (AEO) were higher in pre-market trading and closed 23% higher on Monday after US president Donald Trump complimented the retailer’s marketing campaign with actress Sydney Sweeney.
“Sydney Sweeney, a registered Republican, has the ‘HOTTEST’ ad out there,” Trump wrote in a post on Truth Social, the social media platform he owns. “It’s for American Eagle, and the jeans are ‘flying off the shelves.’ Go get ’em Sydney!”
The campaign, which features the slogan “Sydney Sweeney has great jeans,” has drawn criticism from some commentators, who have accused the company of using a double entendre. Critics argue the slogan refers not to denim but to Sweeney’s appearance — particularly her blonde hair and blue eyes — suggesting a coded message about genetic traits.
American Eagle responded to the accusations on Sunday in a post on its Instagram page: “‘Sydney Sweeney has great jeans’ is and always was about the jeans. Her jeans. Her story.”
The marketing boost comes at a critical time for the US apparel retailer, which has faced sluggish performance amid a challenging retail environment. Earlier this year, American Eagle announced a $75m write-down in spring and summer merchandise and withdrew its full-year guidance, citing slow sales, aggressive discounting and macroeconomic uncertainty.
In its May earnings update, the company said it expected second-quarter revenue to decline 5%, with comparable sales down 3% and gross margins under pressure. Operating income for the quarter was forecast to fall between $40m and $45m.