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- American Eagle's viral campaigns with Sydney Sweeney and Aerie drove revenue growth.
- Aerie's anti-AI advertising pledge and celebrity partnerships boosted brand engagement online.
- Its campaigns generated 44 billion impressions and record new customer acquisition.
American Eagle's marketing campaigns are giving the company a meaningful boost.
The retailer has launched a number of campaigns this year that have been at the center of viral moments online.
It looks like they're paying off financially. Its stock has been up this year, and its total revenue was $1.4 billion for the third quarter that ended November 1, roughly 6% higher year-over-year.
American Eagle raised forward-looking guidance for the fourth quarter, and its stock rose at least 10% after hours on Tuesday.
The boost was driven by its intimates and loungewear brand, Aerie, which saw comparable sales rise by 11%. While other retailers are spending big on AI products for consumers, Aerie is making a promise not to use the technology.
Its pledge not to use AI in its ads, shared in an Instagram post, garnered tens of thousands of likes, making it the brand's most popular post in the past year as of October, Metricool, which tracks social media engagement, told Business Insider in October.
Its success is also due in part to the star power it tapped into with Sydney Sweeney and Travis Kelce being featured in campaigns that gained traction on social media.
Sweeney's "Great Jeans" partnership in July drew criticism online from some who said the campaign had a negative message that promoted "regressive" beauty standards. American Eagle tripled down on the campaign.
"Sydney Sweeney sells great jeans. She is a winner, and in just six weeks, the campaign has generated unprecedented new customer acquisition," chief marketing officer Craig Brommers said in September.
In August, American Eagle released a clothing line in collaboration with NFL star Travis Kelce and his Tru Kolors brand, one day after he announced his engagement to Taylor Swift.
The two campaigns combined made up 44 billion impressions, as it attracted more customers "than ever before."
"American Eagle launched its largest, most impactful advertising campaigns ever, which are delivering results by collaborating with high-profile partners who are defining culture," president and executive creative director Jen Foyle said on the Tuesday call.
The brand is not done forming an all-star cast of celerity partners. The most recent campaign is with Martha Stewart, and American Eagle is betting it'll be a hit with Gen Z customers.
"Martha Stewart resonates with Gen Z. That's a perfect example of what we're up to," Foyle said.
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