The American Eagle actions shot out when operations opened this Thursday, after the retailer boasted the success of his controversial ads with Sydney Sweeney while reporting profits from the second quarter that exceeded the expectations of Wall Street.
Key data
American Eagle shares rose approximately 30% shortly after the opening of the market, reaching approximately $ 17.70, marking the pace of what would be the company’s greatest daily gain in its history.
On Wednesday, American Eagle reported revenues in the second quarter of $ 1,280 million and profits per share of $ 0.45, exceeding the estimates of economists of $ 1,230 million and $ 0.20, according to Factset.
The executive director, Jay Schottenstein, said in a statement that the company felt “promoted” by the success of recent marketing campaigns with Sweeney, including an “increase in customer knowledge, interaction and comparable sales” when American Eagle enters into its third financial quarter.
Jennifer Foyle, president and executive creative director of American Eagle, informed investors on Wednesday that the company obtained 700,000 new customers in its last quarter and that traffic has been “consistently positive” during August.
The advertising campaign “Sydney Sweeney Has Great Jeans” by American Eagle “is not going to disappear,” said Marketing Director Craig Brommers in the presentation of retailer results, and added: “Sydney will be part of our team as we enter the second half of the year, and we will present new elements of the campaign as we move forward.”
Do not miss: American Eagle shares win 23% after Trump praise to actress Sydney Sweeney
Large number
20.4%. That is the fall that American Eagle actions experienced so far this year, despite the recent increases caused by the company’s advertising campaign with Sweeney and the fury of the meme actions around the retail.
Key context
American Eagle launched its advertising campaign “Sydney Sweeney has great jeans” at the end of July, almost at the end of the second quarter of the company. In a marketing video, Sweeney carries some jeans and a Cowboy jacket by American Eagle while playing words with the words “jeans” and “genes”, saying: “genes are transmitted from parents to children, they often determine features such as hair color, personality and even the color of the eyes. My jeans are blue.” The advertising campaign caused a negative reaction of social networks users, which argued that advertising almost promoted eugenics, suggesting that American Eagle hinted that Sweey’s blond hair and blue eyes were more desirable than other traits. President Donald Trump praised Sweeney’s marketing strategy and said the American Eagle jeans “flew from the shelves.” The company defended its advertising campaign, affirming in a statement that advertising is “and was always about jeans.”
This article was originally published in Forbes US
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