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.

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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.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.