American Eagle Outfitters Inc. AEO shares have climbed 16.26% since launching its Sydney Sweeney advertising campaign on July 23, despite new data showing accelerating declines in foot traffic to physical stores.
Stock Performance Defies Retail Fundamentals
The apparel retailer's stock rose from $10.82 to $12.58, marking a 23.94% gain over the past month. Trading volume averaged 13.85 million shares with a current market cap of $2.18 billion and to price-to-earnings ratio of 12.78.
President Donald Trump amplified the campaign's reach, calling Sweeney's ad the "HOTTEST out there" on Truth Social, triggering additional buying interest from retail investors.
See Also: WOW! Stock Rockets Nearly 48% After-Hours As DigitalBridge, Crestview Strike $1.5 Billion Deal To Take Broadband Provider Private
Foot Traffic Data Reveals Concerning Trend
New data from pass_by shows American Eagle store visits dropped 8.96% year-over-year for the week of August 3-9, following a 3.90% decline the previous week. This represents the largest two-week drop in over a year.
"The size and speed of the decline points to more than just seasonal or economic trends," said James Ewen, VP of Marketing at pass_by. "When a brand sees momentum stall so sharply, it often reflects a reputational or cultural factor cutting through to consumers."
Campaign Strategy and Market Impact
The "Sydney Sweeney Has Great Jeans" Fall 2025 campaign features 3D billboards and Las Vegas Sphere advertising. A limited-edition denim jacket retails for $79.95, while "The Sydney Jean" donates 100% of proceeds to Crisis Text Line.
Despite social media buzz driving meme stock speculation, fundamental retail metrics show mixed signals. The stock remains down 24% year-to-date amid broader retail sector pressures and margin compression.
Read Next:
Peter Thiel-Backed Crypto Company Upsizes IPO, Targets Nearly $5 Billion Valuation
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Shutterstock
AEOAmerican Eagle Outfitters Inc$12.57-0.08%Stock Score Locked: Edge Members Only
Benzinga Rankings give you vital metrics on any stock - anytime.
Unlock RankingsEdge RankingsMomentum12.48Growth84.84Quality60.86Value87.95Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs