Shares of American Eagle surged 20% after President Donald Trump praised the retailer’s marketing campaign with actress Sydney Sweeney. The stock initially rose due to meme stock mania but dropped amid campaign criticism. Trump’s endorsement led to a rebound in shares. The campaign faced backlash for being sexualized and out of touch. American Eagle defended the slogan as being about jeans. The marketing saga highlights the challenges companies face in targeting audiences effectively. American Eagle’s campaign aims to boost sales amid a negative slump. The impact of the campaign on sales remains unclear, but search interest in the brand has surged. The company has faced challenges this year due to macroeconomic concerns and merchandising missteps. American Eagle previously withdrew its 2025 guidance and expects a decline in revenue for the current quarter.

Read more at CNBC: American Eagle Sydney Sweeney campaign ‘hottest ad’: Trump