American Eagle shares jump 25% after retailer touts 'success' of Sydney Sweeney's denim campaign

 American Eagle shares spiked 25% in after-hours trading on Wednesday, shortly following the retailer's release of its second quarter earnings report in which it touted the success of its ad campaign with actress Sydney Sweeney.

In the earnings report, the Pittsburgh-based clothing company credited Sweeney's controversial "Great Jeans" campaign — which launched in July and also included a fall denim collection — in part for a rise in engagement, comparable sales and customer awareness.

"The iconic fall denim campaign with Sydney Sweeney affirms we are the American jeans brand," Jay Schottenstein, CEO of American Eagle Outfitters, said during the Wednesday earnings call. "We saw record-breaking new customer acquisition and brand awareness cutting across age demographics and genders."

American Eagle also acknowledged the success of its recently-launched marketing partnership with professional football player Travis Kelce, who is engaged to singer Taylor Swift. The company announced last week that it was launching a limited-edition design collaboration with Kelce's lifestyle brand Tru Kolors.

"Fueled by stronger product offerings and the success of recent marketing campaigns with Sydney Sweeney and Travis Kelce, we have seen an uptick in customer awareness, engagement and comparable sales," Schottenstein said in a statement. "We look forward to building on our progress and the continued strength of our iconic brands to drive higher profitability, long-term growth and shareholder value."

American Eagle, which is focused on Gen Z shoppers, has previously partnered with actress Jenna Ortega and tennis player Coco Gauff, Reuters reported.

TESLA MOCKS AMERICAN EAGLE WITH CHEEKY JEANS JOKE AFTER SYDNEY SWEENEY AD CONTROVERSY ERUPTS

Earlier this summer, the retail giant released its campaign with Sydney Sweeney, titled "Sydney Sweeney Has Great Jeans." Following the launch, there was a mix of reactions on social media.

Some dubbed the American Eagle campaign "tone-deaf" due to the alleged racial undertones. Others praised the actress for killing "woke" advertising. President Trump even chimed in, calling the ad campaign "fantastic." 

In a promo video posted to the brand's Instagram, the 27-year-old walked toward an American Eagle billboard featuring her and the tagline "Sydney Sweeney Has Great Genes." Sweeney crossed out "Genes" and replaced it with "Jeans" before walking away.