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American Eagle Shares Plunge After Controversial Sydney Sweeney Campaign

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World Desk

In Short: American Eagle's shares have plummeted this year, following a campaign featuring actress Sydney Sweeney that faced backlash and delivered mixed results.

The campaign, which faced social media backlash over perceived racial undertones, managed to deliver "unprecedented new customer acquisition," according to Brommers. However, erratic demand across the clothing sector has led to a 36% decline in American Eagle's shares this year, with price-conscious shoppers prioritizing essentials over discretionary purchases.

Despite the challenges, American Eagle has continued to invest in high-profile celebrity marketing, including its "Great Jeans" campaign starring Sydney Sweeney. The campaign generated over 40 billion impressions and saw customer numbers grow by over 700,000 around its launch, according to The Independent.

In the midst of these developments, US President Donald Trump's campaign promise to offer every adult American a $5,000 payout if Republicans win both chambers of Congress in the upcoming midterm elections has sparked debate. The plan, which would cost more than a trillion dollars, has been described as a "dividend for American workers" by some, while others question the feasibility of such a large-scale financial commitment.

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