American Eagle doubles down on controversial ad campaign

Catch up quick: "Genes are passed down from parents to offspring, often determining traits like hair color, personality and even eye color," Sweeney says in the ad. "My jeans are blue."

• The ad ignited online debate, with some praising it for being "anti-woke" and others raising concerns about it approaching a positive portrayal of the discredited belief of eugenics.
• Critics — and former employees — were quick to point out this ad felt like a departure from the company's commitments to inclusive advertising and sizing.

Meanwhile, the ad became even more politicized after President Trump praised Sweeney in a social media post for being a registered Republican and the company for being "anti-woke."

• "The tide has seriously turned," the post said. "Being WOKE is for losers, being Republican is what you want to be."
• Soon after, figures on the right — such as Defense Secretary Pete Hegseth and Rep. Nancy Mace (R-S.C.), who is running for governor — appeared in memes showing their "great" jeans.

By the numbers: While the campaign first went viral on social media, it also garnered coverage in roughly 3,000 news articles. Those generated more than 50 million readers, according to Memo readership data shared with Axios.

• The overwhelming majority of readers — roughly 29 million — came from left-leaning news outlets, per Memo.
• American Eagle's mention volume jumped 18x following the campaign launch, according to Signal AI data, but sentiment toward the brand plummeted from +50 to -31.

What it's saying: In response to the backlash, American Eagle said on Instagram the ad campaign "is and always was about the jeans. Her jeans. Her story."

• "We'll continue to celebrate how everyone wears their AE jeans with confidence, their way. Great jeans look good on everyone."

Between the lines: American Eagle's statement was not the apology some consumers expected, and indicates a major shift in the way corporate America reacts to controversial moments, says Nathan Miller, founder and CEO of crisis management firm Miller Ink.

• "The corporate comms script is that you apologize when you offend people. ... Now, they do the cost-benefit analysis and realize if you apologize, it's not going to placate the critics and it will also promote further ire" from those that initially applauded the campaign, he said.

The big picture: Brands are taking what experts call "calculated risks" by abandoning diversity, equity and inclusion commitments.

• "You're seeing a lot of brands trying to distance themselves from what was previously described as 'woke culture,' and they believe there's a market for those who don't abide by the cultural norms that were previously enforced," Miller says.

The other side: A brand should at the very least acknowledge when it offends its consumer base, says Lola Bakare, marketing strategist and author of "Responsible Marketing."

• "What I saw [in American Eagle's response] was hostility. ... It was shocking and there was really no acknowledgement of the feedback they got from the people who they want to buy their stuff," she said.
• American Eagle "blamed the people who were offended for being offended," which likely decreased its market share, she added.

State of play: American Eagle shares rose more than 23% on Monday after Trump called it "the 'HOTTEST' ad out there" and said "the jeans are 'flying off the shelves.'"

Yes, but: Shares still remain higher than they did prior to the Sweeney campaign, but stock is down roughly 30% year-to-date.

• There is no indication the jeans are selling in high quantities, and foot traffic in American Eagle stores is down roughly 4%, according to data provided by geospatial insights company PassBy.

The intrigue: Consumer PR firm Shadow was running point on the ad launch, according to a press release.

• However, after the continued backlash, strategic communications firm Actum was brought in to handle the crisis response, according to Modern Retail.
• American Eagle and Actum did not reply to Axios' request for comment.

The bottom line: The Sweeney ad shows "how quickly brand campaigns can take on political weight," says Kara Hauck, senior vice president at Sable Strategy.

• "It's not uncommon for cultural moments to catch the attention of this administration. ... All it takes is a single offhand comment at a press conference and suddenly your marketing campaign is propelled into the political realm," she said.
• "It's a reminder to communicators and marketers alike that the line between pop culture, consumer marketing and politics is thinner than ever."

More on Axios:

• American Eagle stock soars after Trump hails Sydney Sweeney ad