American Eagle Outfitters shares surged as much as 25% in after-hours trading on 23 July and were still up about 20% in pre-market dealings the next morning after the retailer unveiled a fall 2025 denim campaign fronted by actress Sydney Sweeney. The move briefly added almost $400 million to the company’s market value and lifted the stock to roughly $12, erasing part of its year-to-date decline. Titled “Sydney Sweeney Has Great (American Eagle) Jeans,” the promotion features more than 200 denim styles and a limited-edition “Sydney Jean,” with all proceeds from that item earmarked for Crisis Text Line. American Eagle said the initiative, its costliest marketing push to date, will appear on digital channels including the Las Vegas Sphere as it seeks to reconnect with Gen Z shoppers. The announcement triggered heavy retail-trader activity: 32,273 call-option contracts changed hands on 23 July, far above the 20-day average of 2,431, while short interest sits at about 12% of the public float, according to LSEG data. Analysts likened the reaction to recent meme-stock rallies in names such as Krispy Kreme and GoPro and cautioned that the gains could prove volatile. Management is betting that Sweeney’s star power will reignite demand after a difficult start to the year. American Eagle, which sources much of its merchandise from China, withdrew its full-year outlook in May amid uncertainty over the newly imposed 145% U.S. tariff and muted discretionary spending. The company reported an adjusted net loss of $51.8 million in its fiscal first quarter and is guiding for operating income of $40 million to $45 million in the current period. Industry observers say a denim-centric strategy is well-timed as the category cycles back into favor, but note that translating social-media buzz into sustained sales growth remains the key test for the Pittsburgh-based retailer.