American Eagle Outfitters shares soared into “meme stock” territory — after the teenager retailer revealed Sydney Sweeney is main a steamy new advert marketing campaign for the autumn.
The corporate’s shares surged almost 10% on Thursday after it unveiled its new advertising and marketing blitz, which options the “Euphoria” star sporting a denim jacket over her in any other case naked torso.
In a sultry video spot, Sweeney leans below the open hood of a classic Mustang GT350 in a decent tank prime, then slams the hood shut — and wipes her palms on her butt earlier than hopping into the automotive and peeling off.
The edgy adverts appeared to defy the “wokism” these days embraced by some main manufacturers — generally with disastrous results, in response to commenters on social media.
“Based ad campaigns are back, and wokery is gasping for breath,” commented X person Zia Yusuf — utilizing the Gen Z time period “based” that usually signifies one thing which is controversial but true.
“Take note Jaguar,” Yusuf added, referring to the UK automotive maker’s flopped advert marketing campaign final fall that includes androgynous fashions.
“Sydney Sweeney drops a cheeky ad, American Eagle stock soars 22%,” one other X person gleefully noticed. “Woke’s dead, baby. Woke’s dead.”
American Eagle joins a unstable cohort of newly anointed meme shares, together with GoPro and Krispy Kreme, which noticed sharp worth swings in Wednesday’s session.
Earlier within the week, meme merchants centered on names like Opendoor Applied sciences and Kohl’s, creating temporary rallies pushed largely by social media buzz quite than earnings or firm information.
Analysts and merchants famous that the Sweeney marketing campaign had helped reframe sentiment across the firm, whose shares had fallen 35% this 12 months forward of Wednesday’s shut.
The retailer’s sturdy model recognition and greater than 13% brief curiosity, in response to FactSet information, made it a pure magnet for meme inventory merchants searching for brief squeezes and speculative good points.
Chatter about American Eagle gained momentum late Wednesday on the favored Reddit discussion board Wall Road Bets — finest recognized for its position within the 2021 GameStop and AMC rallies.
“We do not comment on trading activity or fluctuations in the stock price,” an American Eagle spokesperson mentioned. “We remain focused on executing our strategy and taking actions to position the company for long-term performance.”
Final 12 months, Sweeney partnered with males’s private care model Dr. Squatch for a multi-platform advertising and marketing blitz that helped propel the corporate to a $1.5 billion acquisition by Unilever lower than a 12 months later.
The marketing campaign — dubbed the “Body Wash Genie” — forged Sweeney in a playful, satirical position throughout TV, YouTube, podcasts and social media.
One limited-edition product, a “Bathwater Bliss” cleaning soap made with droplets from one in every of Sweeney’s baths, bought out immediately and triggered a frenzy of resale listings on eBay, the place particular person bars fetched as a lot as $2,000.
The marketing campaign overwhelmed Dr. Squatch’s web site and generated huge viral buzz.
The outcomes had been staggering: Dr. Squatch acquired over 800 media placements, 11.9 billion impressions and a spike in client engagement that accelerated its retail progress and model valuation.
The Sweeney marketing campaign was credited by trade observers as a key driver in Unilever’s determination to amass the corporate for $1.5 billion final month.
Unilever’s press launch cited “viral social-first marketing strategies, partnerships with celebrities and influencers, and culturally relevant collaborations” as central to Dr. Squatch’s speedy progress — a transparent nod to Sweeney’s position in elevating the model.
Final 12 months, Crocs’ inventory jumped greater than 4% after its Heydude model introduced Sweeney as world spokesperson, with analysts crediting the transfer for renewed investor optimism.
A spokesperson for Sweeney declined to remark. The Publish has sought remark from American Eagle.
