Trump’s praise for Sweeney ad sends American Eagle stock surging

American Eagle Outfitters saw its stock price surge more than 20% on Monday, after President Trump praised the retailer’s controversial marketing campaign featuring actress Sydney Sweeney on his Truth Social platform.

“Sydney Sweeney, a registered Republican, has the ‘HOTTEST’ ad out there. It’s for American Eagle, and the jeans are ‘flying off the shelves.’ Go get ‘em Sydney!” Trump wrote Monday morning, sparking the rally in shares that began after markets opened.

The president’s endorsement comes amid a firestorm of criticism over the campaign. The controversy centers on a promotional video featuring Sweeney that was posted to American Eagle’s social media channels. The video has since been removed.

In the teaser, the “Euphoria” actress discusses hereditary traits in a sultry voice, stating: “Genes are passed down from parents to offspring, often determining traits like hair color, personality and even eye color. My jeans are blue.” As she speaks, the video shows Sweeney zipping up her jeans before the camera pans up her body and focuses on her face and blue eyes, framed by blonde hair.

The visual emphasis on Sweeney’s features prompted backlash from critics on the internet who were quick to accuse the ad of promoting eugenics and aligning with white nationalist messaging. Pittsburgh-based American Eagle defended the campaign in a statement it posted to Instagram last Friday, saying it “is and always was about the jeans.”

Trump used the opportunity to criticize what he called “woke” advertising, citing examples like Jaguar’s recent rebrand and Bud Light’s partnership with transgender influencer Dylan Mulvaney in 2023.

“The market cap destruction has been unprecedented, with BILLIONS OF DOLLARS SO FOOLISHLY LOST,” he wrote, contrasting those campaigns with American Eagle’s approach.

The stock surge represents the latest chapter in what has become a meme-driven rally for American Eagle, which initially jumped last month when retail traders piled into the stock following the campaign’s debut.

American Eagle has faced significant financial challenges in recent months. In May, the retailer withdrew its full-year guidance and announced a $75-million write-off of spring and summer merchandise due to slow sales, steep discounting and difficult market conditions. The company reported a first-quarter net revenue of $1.1 billion, down 5% from the prior year, with comparable sales falling 3%.

Several prominent Republicans, including Vice President JD Vance and Sen. Ted Cruz, have also defended Sweeney and the campaign against criticism. The actress herself has not publicly addressed the controversy surrounding the advertisements.

American Eagle shares closed at $13.28 on Monday, up 24%. Some of those gains were reversed on Tuesday when shares fell about 10% to close at $12.02.