In the past few months there has been controversy within the denim universe. On July 23, 2025, American Eagle released an ad campaign with actress Sydney Sweeney. This sparked some controversy on social media due to its message, “Sydney Sweeney has Great Jeans.” The commercial then went on to talk about “genes,” and with Sydney Sweeney being a blonde, blue-eyed, white woman, this proved to be a bit problematic.
Many believe that this commercial was promoting “eugenics” which by definition is, “the study of or belief in the possibility of improving the qualities of the human species or a human population, especially by such means as discouraging reproduction by people presumed to have inheritable undesirable traits negative eugenics or encouraging reproduction by people presumed to have inheritable desirable traits positive eugenics,” according to Dictionary.com
In the political climate of today, this advertisement did not do American Eagle any favors. According to the AEO Inc, American Eagle’s stockholder website, “Total net revenue of $1.28 billion was down 1% to last year. Total comparable sales decreased 1%.” As of July 21, 2025 American Eagle’s stocks were at their lowest value in the entirety of the 2025 fiscal year, and are continuing a constant drop compared to recent years. InstaStatistics, a website that monitors “realtime follower counts,” indicates that they also received an overall decrease in the rate of followers gained on their social media platform, Instagram.
Another large denim company, GAP, chose to capitalize on American Eagles’ marketing nightmare, and use it for their own benefit.
GAP chose to create an ad campaign partnering with global girl group KATSEYE. This campaign received 27 million views on YouTube in just four weeks. This campaign was focused on inclusivity and individuality, with its motto stating: “This is denim as you define it. Your individuality. Your self-expression. Your style. Powerful on your own. Even better together.”
This was a refreshing perspective on denim, including everyone no matter their skin color, size, or eye color. It was also a smart move on GAP’s part, as it earned them popularity points from viewers, and it introduced a new demographic of KATSEYE fans to their product. GAP stocks saw a rise in July 2025 when American Eagle’s commercial with Sydney Sweeney was released, and then saw another rise once the KATSEYE commercial was released in August. But why is that?
This ad campaign was so successful because it included everyone. KATSEYE was the perfect choice because of how diverse the group is. “Our group name, Katseye, is actually inspired by the gemstone Cat’s Eye. And depending on the viewer’s perspective, you can see a different view of the gemstone. You see different colours, and that basically represents each and every one of our talents and our different backgrounds. We are all very different girls with our own charms, personalities, where we come from, and what we represent.” said Sophia Lafortez, a member of KATSEYE in an interview with L’OFFICIEL Singapore.
American Eagle made a mistake attempting to cater towards a certain audience, and in return lost a large percent of customers and money. GAP made the correct decision to collaborate with KATSEYE due to their young audience and the diversity within the group. Evidently, inclusivity creates a better brand following, more revenue, and a better overall business model.
