American Eagle is hoping a two-week takeover of the Las Vegas Sphere can help turn around a difficult year.
On July 23, the retailer is launching its largest fall campaign to date, led by actress Sydney Sweeney and displayed on the 580,000-square-foot Exosphere, the LED-covered exterior of the Sphere, which has quickly become a high-profile platform for brands looking to drive cultural relevance. The campaign includes the launch of a new hero product, the Sydney Jean, with all net proceeds supporting the Crisis Text Line.
The company did not disclose how much it paid for the Sphere activation. However, based on figures reported by News 3 Las Vegas in 2023, a one-week campaign costs $650,000, and a single-day activation runs $450,000. That would put American Eagle’s two-week campaign at approximately $1.3 million, including the cost of a 90-second custom-produced spot and more than seven hours of screen time over the two weeks.
This media investment comes on the heels of a rough financial first quarter of 2025. On May 29, American Eagle Outfitters, Inc. reported a $75 million write-down in unsold spring and summer merchandise, along with an adjusted operating loss of $68 million. Comparable sales fell 3%, led by a 4% drop at Aerie and a 2% drop at the namesake brand. Total revenue for the quarter declined to $1.09 billion, down from $1.14 billion a year earlier.
“The first quarter was a challenging period for our business,” said AEO CEO Jay Schottenstein on the earnings call. “While we are disappointed with the results, we are taking actions to better position the company and drive stronger performance in the upcoming quarters.”
With margins hit by steep discounting and macroeconomic volatility, according to analysts, AEO also pulled its full-year guidance. Executives said on the earnings call that they were focused on regaining momentum in time for the critical back-to-school season.
The Sphere campaign appears to be part of that strategy. “When the [Sphere] content comes to life, whether you’re there physically or if you see it on social media, you’ll see that the team developed [the creative] around that 360-degree physical space, and that will really create some noise,” Craig Brommers, AEO’s CMO, told Glossy.
The campaign’s creative is rooted in stylized minimalism and is built around the tagline “Sydney Sweeney Has Great Jeans.” The videos feature puns around “genes and jeans,” and clips of Sydney doing doughnuts in a light blue 1965 Ford Mustang convertible or buttoning up her jeans while explaining what her “genes” are. It marks the first time AE has partnered with an A-list celebrity at this scale and the first time the brand has built custom creative for the Sphere’s curved format.
In addition to the Exosphere, the campaign includes a 3D billboard in Times Square, bus wraps in multiple cities, AR try-ons via Snapchat and an Instagram broadcast channel where Sweeney will speak directly to consumers. It marks the brand’s first use of a Broadcast channel. “It really will feel like she’s talking with you and to you. That content was shot very specifically with the [Broadcast channel] end use in mind,” said Brommers. The brand has 3.7 million Instagram followers.
American Eagle collaborated with Sweeney’s stylist, Molly Dickson, to create the denim-based looks used throughout the campaign.
“Sydney reflects our brand values and reflects what we’re trying to do with the jeans category right now,” Brommers said. “She really is that accessible girl next door, … and at the same time, there’s not a premiere or cultural event where she doesn’t show up and look stunning.”
For American Eagle, that relatability is the point. In contrast to traditional high-gloss celebrity campaigns, brands like AE are betting on personalities who feel approachable. Ashley Shapiro, vp of marketing at AEO, said Sweeney “evokes this feeling of not taking herself too seriously and having … a little bit of mischief, a little wink to her.”
That tone is increasingly resonant for Gen Z, who tend to favor authenticity and humor over polish. AE is also extending the campaign to male consumers by featuring Sweeney in men’s denim and running targeted ads on Reddit and sports media platforms.
“She’s aspirational for females. She’s aspirational for guys as well,” Brommers said. “That’s not normal. That’s not something we do ever.”
The activation also positions American Eagle alongside global brands experimenting with the Sphere as a new kind of billboard. In June, Chanel ran a campaign for its No. 5 L’Eau fragrance, becoming the first luxury beauty brand to appear on the Sphere’s exterior. Xbox, Google Cloud and the power tool company DeWalt have since followed.
Whether AE’s campaign will lift sales is unclear. Executives acknowledged during the May earnings call that its earlier merchandising strategies missed the mark. “Some of our big fashion ideas for the season simply did not resonate with our customer,” said Jennifer Foyle, president and creative director for AE and Aerie. Shorts, she noted, were a particular miss.
That makes the upcoming fall season even more critical. CFO Michael Mathias said the company remains focused on back-to-school timing and expects second quarter revenue to decline 5% year-over-year. In the meantime, AE is finalizing its $200 million accelerated share repurchase program and working to reduce exposure to China-based sourcing to under 10% for the year.
“In an uncertain retail environment, you have to cut through,” Brommers said. “You have to make noise. Sydney does that. The activation does that.”
