Travis Kelce Sends American Eagle Stocks Up After Proposing to Taylor Swift Despite Sydney Sweeney Controversy

Fashion Meets Football: American Eagle’s Bold Marketing Moves in 2025

American Eagle Outfitters Inc. is making headlines again, but this time it’s not just about jeans. Following a wave of controversy linked to its recent campaign featuring actress Sydney Sweeney, the retail brand has announced a high-profile collaboration with NFL superstar Travis Kelce, sending its stock price up by more than 6% in a single day.

The move signals American Eagle’s intention to reposition its brand and recover from a turbulent summer that included both viral attention and public criticism.

Travis Kelce x Tru Kolors: A New Direction for American Eagle

The brand’s latest partnership, titled AE x Tru Kolors, features Travis Kelce’s personal brand and includes a new line of t-shirts, sweatshirts, sweatpants, and casual trousers. According to American Eagle, the collaboration has been in development for more than a year, long before the recent headlines involving Sweeney and former President Donald Trump.

By teaming up with Kelce—tight end for the Kansas City Chiefs and now global pop culture figure due to his engagement to Taylor Swift—American Eagle is attempting to tap into a broader cultural audience. The retailer is also aligning this campaign with other young athletes including quarterback Drew Allar, Olympic gold medalist Suni Lee, and basketball standout Azzi Fudd, indicating a push toward sportswear and youth-driven branding.

The strategy seems to be working—American Eagle stock rose 6.1% in New York trading on Wednesday, offering a much-needed boost after several challenging quarters.

Sydney Sweeney Campaign Fallout: Controversy Meets Virality

The timing of the Travis Kelce launch is no coincidence. Earlier this year, American Eagle came under fire for its “Great Jeans” campaign starring Sydney Sweeney, best known for her roles in Euphoria and The White Lotus.

The ad, which featured the tagline “Sydney Sweeney Has Great Jeans,” was meant to be a cheeky nod to her fashion sense. But critics on social media interpreted it as a coded reference to eugenics and white supremacy, due to the emphasis on Sweeney’s blonde hair and blue eyes. These accusations snowballed quickly and attracted national attention.

Surprisingly, the controversy caught the eye of Donald Trump, who publicly praised the ad on his social media platform Truth Social, calling it “the hottest ad out there.” He also offered words of encouragement to Sweeney, which added political heat to an already tense marketing moment.

This unexpected political crossover briefly pushed American Eagle’s stock up 23% on August 4, but that surge proved short-lived.

American Eagle Stock Performance in 2025: Highs and Lows

Despite recent buzz, American Eagle stock is still down 25% year-to-date and has fallen nearly 44% compared to this time in 2024. The stock’s performance has reflected deeper struggles within the company, including year-over-year sales declines in the past three quarters.

The retailer is set to release its Q2 earnings report on September 3, and analysts are watching closely to see whether the brand’s recent marketing efforts—including both the Sydney Sweeney and Travis Kelce campaigns—will help reverse its negative trend.

Investment bank UBS has maintained a Buy rating on the stock, with a $19.00 price target. In a recent research note, UBS analysts stated that their market checks suggest Q2 performance was in line with expectations, and that early third-quarter data indicates improved consumer engagement, especially as a result of viral campaign attention.

UBS also cited American Eagle’s solid fundamentals, including a 36.9% gross profit margin and an impressive streak of 22 consecutive years of dividend payments.

Travis Kelce: A Game-Changer for American Eagle’s Image?

The decision to bring in Travis Kelce as a partner is more than a celebrity endorsement—it’s a strategic rebranding move. Kelce isn’t just an NFL star; he’s also known for his unique style, vibrant personality, and rising influence in pop culture, particularly due to his high-profile relationship with Taylor Swift.

With this campaign, American Eagle is hoping to diversify its audience appeal and shift focus away from the divisive Sydney Sweeney campaign. The timing of Kelce’s engagement to Swift has also resulted in major media coverage, boosting public interest in anything he’s associated with.

Launching AE x Tru Kolors now is smart marketing. It positions the brand to leverage Kelce’s mainstream popularity and tap into sports, music, and fashion audiences all at once.

Marketing in the Age of Controversy and Virality

American Eagle’s recent experiences highlight a new era of marketing—one where controversy and virality often overlap. Brands are walking a fine line between attention-grabbing creativity and potential backlash.

The Sydney Sweeney controversy showed how quickly a well-intentioned campaign can spiral into something unintended, especially in a hyper-sensitive online environment. However, it also demonstrated the power of visibility. Despite the backlash, the campaign increased brand awareness dramatically and even temporarily boosted the stock.

Now, the Travis Kelce campaign offers a chance to reset the narrative—to move from political commentary back to product-focused promotion, supported by a globally admired figure who’s less likely to polarize consumers.

Earnings Expectations and Brand Recovery

All eyes are now on the upcoming Q2 earnings report. According to UBS, while the Sweeney campaign created temporary buzz, the Kelce collaboration may have more sustainable influence on customer sentiment and store traffic.

Still, analysts remain cautious. American Eagle has a strong retail presence and a loyal customer base, but turning viral fame into long-term profit isn’t always easy. It will come down to whether the brand can maintain momentum, adapt quickly, and continue delivering value.

UBS also noted that even with solid fundamentals, there’s no guarantee that these marketing wins will translate into lasting market gains. The forthcoming earnings report will offer the first real indicator.

Final Thoughts: A Turning Point for American Eagle

In just a few months, American Eagle has gone from a fashion underdog to the most talked-about brand in the denim space—thanks largely to Sydney Sweeney and Travis Kelce.

Both campaigns couldn’t be more different: one was edgy and risky, sparking debate across political and cultural lines; the other is fun, sporty, and safe, appealing to a wide demographic. But they share one thing in common: they got people talking.

Now, with the AE x Tru Kolors campaign live and a crucial earnings report on the horizon, American Eagle has a chance to reshape its public image, recover stock value, and reconnect with core shoppers.

If the Kelce collaboration lands the way American Eagle hopes, it could mark a significant turning point for the brand—one that transforms viral fame into real, measurable business success.