Shares of American Eagle Outfitters spiked 34% Thursday after the teenager clothes retailer stated the frenzy surrounding its Sydney Sweeney advert marketing campaign drew new prospects throughout its most up-to-date quarter.
American Eagle rolled out its new new advert marketing campaign starring 27-year-old actor over the summer time. The autumn denim marketing campaign sparked a debate about race, Western magnificence requirements, and the backlash to “woke” American politics and tradition.
Unfavorable reactions centered on adverts that used the phrase “genes” as an alternative of “jeans” that includes the blonde-haired, blue-eyed actor recognized for the HBO sequence “Euphoria” and “White Lotus.”
However American Eagle did get seen, executives stated late Wednesday in a name after the Pittsburgh retailer posted second quarter earnings.
“We saw a record-breaking new customer acquisition and brand awareness cutting across age, demographics and genders,” stated CEO Jay Schottenstein.
Visitors constructed up all through the second quarter and continued into August, he stated.
The corporate now expects comparable-store gross sales to rise by low single-digit percentages within the third and fourth quarters. The corporate withdrew its outlook for the yr this spring citing volatility from the chaotic international financial scenario. But it surely stated Wednesday that same-store gross sales ought to be flat this yr with the bump.
American Eagle did say that its model additionally benefitted from a brand new advert marketing campaign that includes newly engaged NFL star Travis Kelce.
American Eagle stated the marketing campaign was all the time about its clothes and never race when responding to criticism. A month later retail rival The Hole put out its personal advert that includes lady group KATSEYE. That advert obtained some reward for its inclusivity.
Hole CEO Richard Dickson, talking Thursday at a Goldman Sachs international retail convention in New York Metropolis, stated its “Better in Denim” marketing campaign obtained 400 million whole views and in three days had extra views than the model’s 4 prior adverts mixed.
“I think when the industry creates campaigns that are talked about, it generates interest in the industry, ” Dickson stated in an interview with The Related Press. “Our current campaign, Better in Denim, is a great example of that.”
Neil Saunders, managing director of GlobalData, wrote that the frenzy across the Sweeney marketing campaign is one thing of a “tempest in a teacup.”
“While it generated strong reactions, it ultimately had no serious detrimental impact on sales,” he stated. “Indeed, guidance for the second half points to improved momentum, supported by both the denim marketing and the ongoing Travis Kelce partnership.”
And a spotlight from the Sweeney marketing campaign does not appear to have harm the model.
“Whatever the deserves of the collaborations, making extra noise is precisely what American Eagle must do to chop via and regain floor amongst customers for whom it has slipped off the radar, Saunders defined.
For the second quarter, American Eagle’s income dipped 1% to $1.28 billion.
Chief Advertising Officer Craig Brommers stated Wednesday that the Sweeney advert marketing campaign will proceed.
“Sydney will be part of our team as we get into the back half of the year and we’ll be introducing new elements of the campaign as we continue forward,” he stated.
Shares of American Eagle Outfitters Inc. are up 10% this yr with the most recent surge.
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—-AP Retail Author Anne D’Innocenzio in New York contributed to this report.
