In a recent interview with The Wall Street Journal, Schottenstein explained how the company weathered the backlash that erupted following the July launch of American Eagle’s fall denim campaign starring Sweeney, a Hollywood actress known for her leading roles in “Euphoria” and “The White Lotus.” What seemed like a playful wordplay—”Sydney Sweeney has great jeans”—quickly turned contentious, with critics accusing the ad of covertly promoting eugenics and racist beauty standards due to references to heredity and Sweeney’s blonde-haired, blue-eyed appearance.

Rather than responding with public statements or pulling the ads, Schottenstein instructed executives and employees to “remain calm and not comment.” The company monitored social media reaction and surveyed its customers, seeing nearly a million new customers between July and September.

Although comparable store sales fell 1% in the second quarter for 2025, ended August 2, its earnings beat Wall Street expectations overall and the company reaffirmed its full-year guidance, suggesting the full impact of the Sweeney ads will be visible in the third quarter.

“Sydney Sweeney is worth every single dollar that we invested,” American Eagle chief marketing officer Craig Brommers told Marketing Brew in early September. “Every single marketing metric that I look at is flashing a green light, and we’re only six weeks in.” Brommers said the campaign had generated 40 billion impressions to that point.

American Eagle stock is up more than 60% over the last six months.

The CEO made his position clear to the Journal: “You can’t run from fear. We stand behind what we did.”

Anatomy of a viral campaign

The campaign centered around a series of ads featuring Sweeney discussing the genetic inheritance of traits, culminating with the tagline: “My jeans are blue.” The pun—playing on “genes” vs. “jeans”—was intended to highlight American Eagle’s denim, but quickly ignited debate over whether the spot subtly advanced exclusionary ideals tied to genetics. The controversy became further embroiled in political commentary, with President Donald Trump publicly defending the ad on social media, positioning it as “anti-woke”—and praising Sweeney as a registered Republican.

Despite these criticisms, American Eagle experienced a surge in sales. The signature Sydney Sweeney jean and cinched denim jacket sold out within days, and Schottenstein said the campaign led to a noticeable spike in brand awareness and shareholder value.

The CEO’s personal perspective

Schottenstein, an Orthodox Jew, expressed confusion at accusations that the campaign contained eugenic overtones. He pointed out his personal connection to the subject: His mother-in-law lived through Nazi Germany and witnessed the devastation of Jewish communities, making him “very conscious” of what such terms mean. If the company thought the campaign could be misinterpreted like that, he insisted, “we never would’ve done it.”

The Sydney Sweeney episode underscores the complexities facing brands in an environment where culture wars can shape, or sink, advertising campaigns. Consumer-goods companies, especially those targeting youth markets, must navigate fraught debates on identity, inclusion, and representation. While Sweeney herself has declined to comment publicly on the debate, American Eagle has confirmed she will remain a brand ambassador through the rest of the year, with more campaign elements still to be released.

On the earnings call for the second-quarter results, Brommers said “Sweeney is a winner, and in just six weeks, the campaign has generated unprecedented new customer acquisition.”

American Eagle did not immediately respond to a request for comment.

For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.