The strategy: American Eagle Outfitters’ bet on star power is helping the company recover from its sales slump.

The retailer’s controversial campaign with Sydney Sweeney has been hugely successful, the company said, helping to boost brand awareness and drive shoppers to stores. Its recently announced collaboration with Travis Kelce also delivered an immediate sales bump.

Reversal of fortunes: American Eagle badly needed a win after a poor Q1, in which it had to write off $75 million of inventory after badly misjudging spring and summer apparel trends. While the full impact of the Sweeney and Kelce campaigns won’t be evident until the company reports Q3 results, American Eagle’s solid Q2 performance showed that it is quickly getting back on track.

• While net revenues fell 1% YoY in Q2, that was a substantial improvement from the 5% decrease of the previous quarter and much better than the 4.4% drop analysts expected.
• Comparable sales also improved sequentially, helped by recovery at Aerie, which somewhat offset ongoing softness at American Eagle.
• So far this quarter, comparable sales are up by mid-single-digits, which the company credited in large part to its celebrity-led campaigns and improved product assortments.

All publicity is good publicity: While brands usually try to avoid controversy at all costs, American Eagle’s polarizing campaign ended up working in its favor. The endless stream of social media takes and news coverage provided plenty of earned media—and plenty of opportunity to raise awareness and acquire customers.

• American Eagle gained nearly 800,000 customers in the quarter to date, while its brand demand is at a 20-year high, CMO Craig Brommers told Ad Age.
• The Sweeney campaign has done precisely what the company intended: grow jeans sales and boost awareness. The campaign delivered 40 billion impressions, “beyond any marketer’s wildest dreams,” Brommers said, and resulted in product sellouts.

Our take: American Eagle’s celebrity-led marketing strategy is driving its recovery after a poor start to the year. By turning controversy into buzz, the brand’s campaigns have revived interest in its core products and expanded its appeal to a broader audience.

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