**American Eagle Defends Sydney Sweeney Ad Amid Controversy**
American Eagle Outfitters Inc. has come to the defense of its advertising campaign featuring actress Sydney Sweeney, which has faced backlash for allegedly having racist undertones. The company emphasized in an Instagram post that the campaign “is and always was about the jeans,” reaffirming its commitment to celebrating individual styles and confidence in wearing AE jeans.
Launched last week, the campaign includes the tagline “Sydney Sweeney Has Great Jeans.” One of the videos cleverly plays on the word “genes,” as Sweeney zips up her jeans while discussing how traits like hair color and personality are inherited. She concludes the video by stating, “My jeans are blue,” while showcasing her blue eyes. This particular focus has ignited discussions online, with some critics suggesting it evokes the controversial eugenics theory, while others argue that the criticism is overblown.
When the campaign was first revealed on July 23, American Eagle’s stock saw an increase. Chief Marketing Officer Craig Brommers expressed optimism about the collaboration, calling Sweeney the “It” girl of the moment and highlighting the campaign’s potential impact.
Despite the initial positive reception, analysts are monitoring the retailer’s performance closely, especially during the crucial back-to-school shopping season. Some consumers may be deterred by the controversy surrounding the ads, potentially opting for competitors like Levi Strauss & Co., Abercrombie & Fitch Co., or Gap Inc. Jessica Ramírez, managing director at the Consumer Collective, noted that shoppers have various alternatives available.
In light of the situation, JPMorgan analyst Matthew Boss has downgraded his recommendation for American Eagle from neutral to underweight, citing overly optimistic market expectations for the company’s earnings. The retailer is working to recover after retracting its 2025 outlook and incurring a $75 million charge related to merchandise writedowns.
As the situation unfolds, American Eagle’s ability to navigate consumer sentiment and maintain sales during this pivotal season will be crucial.
**FAQ**
**What is the controversy surrounding American Eagle’s ad campaign with Sydney Sweeney?**
The controversy stems from accusations that the campaign’s focus on the word “genes” in relation to a White, blond woman evokes racist eugenics theories. Critics argue that this association is problematic, while others believe the criticism is exaggerated.

