American Eagle’s shares experienced a significant surge of 12% following the announcement of their collaboration with actress Sydney Sweeney for a new advertising campaign. This spike added approximately $US228 million (around $346 million) to the brand’s market capitalisation, with share prices closing over 4% higher. Analysts have described this leap as "untethered from reality," especially since the company’s stock had fallen nearly 50% earlier this year prior to this recent excitement.
As part of this initiative, Sweeney is set to launch her collection titled "The Sydney Jean" alongside a limited-edition denim jacket, aimed at the upcoming winter. Sweeney is widely known for her breakout roles in HBO’s Euphoria and Netflix’s The White Lotus, which have cemented her status as one of the most recognisable actresses in the US entertainment landscape.
Recent trends indicate that Sweeney has not only caught public attention through her acting but also via her ventures in merchandise. For instance, she gained considerable online buzz with the release of a soap that intriguingly included a small amount of her bathwater. This unique marketing approach further exemplifies her knack for creating hype.
To date, Sweeney has collaborated with several other brands, including Ford, Baskin-Robbins, and the high-end fashion label Miu Miu, showcasing her versatility as a brand ambassador. Her influence in the digital realm also cannot be overlooked, as she boasts a considerable following of over 25.5 million on Instagram, effectively amplifying her impact on brand visibility.
Overall, the collaboration between American Eagle and Sydney Sweeney appears to be a strategic move that may rejuvenate the brand’s image and financial standing amidst a challenging market context.