From Hollywood starlet to meme stock queen, Sydney Sweeney is having quite the year, and she may have just saved American Eagle Outfitters’ (AEO) bacon.The American clothing maker is riding a wave of retail investor enthusiasm, with its stock jumping over 4% on Thursday, hitting a high of $11.98 on Friday before closing at $11.68.The surge follows the launch of the company’s boldest marketing move yet — a sexy denim campaign featuring Hollywood sensation Sydney Sweeney.The Euphoria and The White Lotus star’s partnership with the retailer has ignited a wave of enthusiasm, propelling American Eagle into the latest round of the meme stock craze driven by retail investors on platforms like Stocktwits and Reddit’s WallStreetBets — the online forum behind the infamous 2021 GameStop controversy..The campaign, dubbed “Sydney Sweeney Has Great (American Eagle) Jeans,” is its most expensive marketing effort to date and was launched on Wednesday with an aim to reconnect with Gen Z shoppers amid the current challenging retail market.“With Sydney Sweeney front and centre, she brings the allure,” Jennifer Foyle, the company’s president and executive creative director, said in a statement.“We add the flawless wardrobe for the winning combo of ease, attitude, and a little mischief.”American Eagle’s high short interest and inherent brand recognition made it a prime candidate for meme-obsessed individual investors who have been sending specific stocks on highly volatile rides this past week.The excitement spilled over into online forums, where one WallStreetBets user posted, “Who doesn’t like Sydney Sweeney? That’s my DD,” alongside a screenshot of a 20,000-share position in $AEO opened Thursday..This mirrors recent meme-driven, volatile surges in stocks like Opendoor Technologies.On Wednesday, GoPro (up 12.4% after peaking at 73%) and Krispy Kreme (up 4.6% after hitting 39%) saw wild trading as well, with traders on WallStreetBets heavily citing both of them.According to FactSet, roughly 13% of American Eagle shares are currently sold short, meaning traders betting against the stock were forced to buy shares to cover losses — a classic short squeeze that further inflated prices.Neil Saunders, managing director of GlobalData told Reuters the campaign comes at a perfect time.“Denim is popular right now, so putting money behind marketing it makes sense,” he said, pointing to Western wear trends currently dominating youth fashion.American Eagle’s strategic pivot comes at a crucial time.Facing a tough retail market and tariff uncertainties due to its reliance on Chinese sourcing, the company withdrew its annual forecasts in May, as per Reuters..The Sweeney campaign, prominently being displayed on Las Vegas’s 3D Sphere exosphere, aims to reconnect with Gen Z shoppers and capitalize on denim’s current popularity boom driven by current style trends.“Denim is popular right now, so putting money behind marketing it makes sense,” Saunders said. BMO Capital Markets analyst Simeon Siegel told Reuters the growing trend of brands leveraging celebrity collaborations to quickly tell a compelling brand story.“Well-known personalities are always an easier way to tell a story quickly,” he said, drawing parallels to Justin Bieber’s 2020 campaign with Crocs, which also sparked a jump in stock value.As consumers hold onto their wallets and the retail industry grapples with uncertainties, American Eagle’s bold bet on Sweeney could be exactly the shot in the arm the brand needs.
