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American Eagle Credits Sweeney Ads for a Big ‘Reset’; How Macy’s Is Turning the Retailer Around; Newsmax Files Antitrust Suit Against Fox News
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Good morning. Today, American Eagle says its celebrity ad campaigns are helping awareness and sales; Macy’s snaps its sales decline with reduced clutter and more staff; and Newsmax accuses Fox News of freezing competitors out of cable deals.
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The retailer’s denim ad campaign, themed “Sydney Sweeney Has Great Jeans,” sparked controversy this summer. Photo: David ‘Dee’ Delgado/Reuters
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American Eagle said its “Sydney Sweeney Has Great Jeans” ad campaign has given its brand and business a “reset,” Kelly Cloonan and Megan Graham reports.
The push sparked significant attention and controversy since its introduction on July 23, including questions about its intended audience and praise by President Trump.
“In just six weeks, the campaign has generated unprecedented new customer acquisition,” CMO Craig Brommers said on an earnings call Wednesday. “To be clear, that consumer acquisition is coming from every single county in the U.S. This momentum is national, and it is pervasive.”
American Eagle said it now expects comparable sales to increase by low single-digit percentages in the third and fourth quarters, resulting in the metric finishing the year about flat.
It had withdrawn its full-year outlook in May, citing difficulties predicting consumer spending because of macroeconomic volatility.
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Content from our sponsor: Deloitte
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To Win Parents Over, Retailers Can Make School Lunches Easier
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Retailers that can make lunch planning easier and more affordable can stand out by helping families feel a little less stressed. Read More
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Macy’s same-store sales grew in the latest quarter for the first time since 2022. Photo: David Dee Delgado/Getty Images
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Macy’s is crediting changes large and small with the chain’s first quarterly same-store sales growth in three years.
“We are seeing some green shoots,” CEO Tony Spring told Suzanne Kapner. “We are celebrating the progress but our ambition is to do much better.”
Since taking the helm in 2024, Spring has closed a chunk of Macy’s stores, added more staff to fitting rooms, culled styles from the shoe department to make them less cluttered and easier to shop, and added new brands like DKNY and Good American.
On a conference call with analysts to discuss Macy’s latest results, Spring described a note he had received from a customer who was pleasantly surprised that the store she visited was clean and its employees helpful.
“I read every customer note that I receive,” Spring said. “Listening to feedback is one of the most important ways we can improve and grow our business.”
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“I know part of why they are so popular is consumerism. But they’re so cute.”
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— John, a law student attending a Labubu-themed rave in Los Angeles, on the appeal of the ugly-adorable collectibles
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Newsmax CEO Christopher Ruddy accused Fox News of pressuring cable distributors to stiff-arm or disfavor potential competitors. Photo: Michael Nagle/Bloomberg News
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Newsmax accused bigger rival Fox News of anti-competitive behavior in an antitrust lawsuit, Joe Flint writes.
The suit alleges that Fox News has used the strength of its high-rated lineup to “coerce distributors into unfair terms that either prevent those distributors from carrying competitors of Fox News,” or to impose financial penalties on distributors that do.
“Fox may have profited from exclusionary contracts and intimidation tactics for years, but those days are over,” Newsmax CEO Christopher Ruddy said in a statement.
A Fox News spokeswoman said, “Newsmax cannot sue their way out of their own competitive failures in the marketplace to chase headlines simply because they can’t attract viewers.”
Fox News and Wall Street Journal parent News Corp share common ownership.
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$200 million
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Valuation of Garage Beer, the brewer backed by Jason and Travis Kelce, in its first institutional round of fundraising. The company, which sells a classic light beer and a lime beer, has earmarked the money for marketing and further expanding the brands.
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Figma offers a platform for creating, sharing and testing designs for apps and other products. Photo: Michael Nagle/Bloomberg News
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Figma posted a double-digit increase in revenue in its latest quarter as customers continue to spend more money on its design and product-development software. [WSJ]
Shein pulled the listing for a shirt that appeared to be modeled by alleged murderer Luigi Mangione, blaming an outside vendor and promising stronger monitoring. [TMZ]
Success brings sometimes surprising overhead costs for creators. [Digiday]
Haircare brand Vegamour named its first “chief LinkedIn officer” in a bid to reach consumers on the platform. [Glossy]
Trendy California grocery chain Erewhon will open its first New York City location inside Kith Ivy, a new West Village members club. [Snaxshot]
Lululemon is pinning hopes for reinvigorated sales on a growing roster of star athletes including Frances Tiafoe, Max Homa and Lewis Hamilton. [Bloomberg]
Meet the woman who controls which celebrities and influencers get free tickets to the U.S. Open and the media exposure that comes with it. [NYT]
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