Culture is expensive: American Eagle bets on buzz as tariffs and rivals close in

This story was first published by Digiday sibling Glossy

American Eagle has become the loudest voice in the denim wars. The brand’s high-profile campaigns with Sydney Sweeney and Travis Kelce have drawn 40 billion impressions, sold out products and brought in just under 800,000 new customers since late July. But as supply chain costs surge and pricing pressure builds, investors are asking whether American Eagle’s focus on cultural heat is coming at the cost of sustainable growth.

“In Q2, we were the No. 1 brand for 15‑ to 25‑year‑olds and the No. 2 jeans brand for 15‑ to 29‑year‑olds,” said Jennifer Foyle, president and executive creative director of American Eagle and Aerie, during the company’s September 3 earnings call. “We experienced a positive response in denim and were chasing back into key fits, like Dreamy Drape and Athletic.”

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