Trump bump boosts American Eagle

Shares of American Eagle (NYSE:AEO) are up by double-digits on Monday and erasing four days of losses after President Trump threw his support behind the company’s polarizing ad campaign featuring actress Sydney Sweeney.

When told Sweeney registered as a Republican in Florida, Trump called the ad “fantastic.”

“She’s a registered Republican? Now I love her ad,” the president said to reporters in Allentown, Pennsylvania.

Trump doubled down on Truth Social, hailing the ad as “the HOTTEST out there…the jeans are flying off the shelves.” He later deleted the post, but not before adding, “Being WOKE is for losers.”

The “Sydney Sweeney has Great Genes Jeans,” ad has generated controversy on both sides of the political aisle, with some accusing the company of endorsing eugenics and white supremacy, while others consider the public outcry “cancel culture run amok.”

To defuse any confusion to the intention of the ad, American Eagle (NYSE:AEO) issued a statement on Instagram (META) saying the campaign “is and always was about the jeans. Her jeans. Her story.”

Regardless of supporters or detractors, the controversy has weighed on shares, overshadowing what should otherwise be a very successful ad campaign. Last week, American Eagle (NYSE:AEO) shares fell as much as 16% over four days.

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