Celebrity Campaigns Ignite a New Denim Battle Among Major Retailers

Levi Strauss chief executive Michelle Gass was running in San Francisco last March when she first heard the track “Levii’s Jeans” on Beyoncé’s album “Cowboy Carter.” Gass told CNBC the reference gave her “chills” and represented a rare marketing moment she could not ignore, describing Beyoncé as “one of the most celebrated and influential artists of our time” and prompting Levi to explore whether the mention could be leveraged more broadly.

Six months later Levi confirmed Beyoncé would headline a global advertising campaign, and rival brands quickly responded. Gap and American Eagle rolled out star-driven campaigns the following summer to boost denim sales; Gap collaborated with girl group Katseye on a viral, TikTok-oriented “Milkshake” spot, while American Eagle tapped actress Sydney Sweeney for its provocative “good jeans” campaign and later enlisted Martha Stewart for an additional celebrity-led push ahead of Thanksgiving.

Smaller labels have also benefited from celebrity exposure without paying for formal endorsements. True Religion experienced a sales surge after Kylie Jenner posted a photo wearing the brand’s jeans in late August, a lift CEO Michael Buckley described to CNBC as the “ultimate compliment.”

Across the industry, advertisers increased denim-focused television activity by nearly 70% year over year, as the global jeans market expanded to $101 billion, a 28% rise since 2020, according to data from TV outcomes firm EDO and market researcher Euromonitor International. Those campaigns reveal distinct strategic priorities: American Eagle is targeting more male shoppers, Levi is intensifying efforts to attract women, and Gap is attempting to regain cultural relevance with younger consumers.

Collectively, the marketing push illustrates how aggressively retailers are competing for share in a resurgent denim category. With many consumers exercising greater caution on discretionary spending, brands are intensifying efforts to capture every available dollar. “There definitely is a denim war. There’s a war for people’s attention. There’s a war for people’s spend,” said Neil Saunders, retail analyst and managing director at GlobalData, noting that fit, comfort and fabric have become central to purchase decisions and heighten competition among retailers.

Denim’s renewed prominence follows cyclical patterns in fashion: it dominated in the 2000s with labels such as True Religion and Joe’s Jeans before athleisure reshaped casual wear. Retail analysts say the post-Covid shift toward dressing for social occasions helped reignite demand. Janine Stichter, managing director and retail analyst at BTIG, observed that consumers began seeking garments that signaled they were leaving home again, a trend that helped catalyze the current denim cycle.

Unlike prior booms that favored a single silhouette, the current market accommodates a wide range of cuts—from wide leg to barrel leg to bootcut—broadening the category and creating more opportunities for brands to differentiate. That variety, combined with a sluggish overall apparel market, has made denim a rare bright spot, though competition has intensified as legacy players contend with emerging labels, fast-fashion chains and thrift outlets that appeal to Gen Z shoppers.

To break through the noise, companies have pursued bold creative strategies. Saunders said brands needed edgier campaigns to generate attention rather than playing it safe. For Gap and American Eagle, both of which have seen their mall-era relevance wane, the denim initiatives serve a dual purpose: driving sales and reintroducing the brands to a younger audience as part of broader reinvention efforts. “Leaning into denim and having these big campaigns around denim is part of a wider push to reinvigorate the brands,” Saunders said, adding that denim can act as a halo product to elevate other categories.

Gap CEO Richard Dickson told CNBC that the Katseye campaign has resonated with Gen Z while reinforcing loyalty among Gap’s core customers, describing the effort as a bridge between generations. Data from EDO indicate that the creative content of denim ads matters: measured by consumer engagement such as searches and site visits, jeans advertising effectiveness improved 9% year over year from January through August, suggesting message quality can outweigh sheer frequency. EDO also reported that Levi’s denim spots were 304% more effective than the average clothing ad, even after the company reduced airings by nearly one-third.

Advertising investments are reflected in corporate expense lines. In Levi’s fiscal year ending Dec. 1, 2024—the period that included the launch of the Beyoncé campaign—selling, general and administrative expenses rose by nearly $200 million versus the prior year, with more than half of that increase occurring in the quarter the campaign debuted; the company has acknowledged the ads contributed to higher costs. Gass defended the outlay, saying the campaign delivered strong returns and supported both sales and profit growth.

Attracting more female customers has been a central objective under Gass’s leadership, and Levi’s Beyoncé campaign appears to be advancing that goal. The company reported that women accounted for roughly 35% of revenue shortly after the campaign’s debut last October, rising to about 38% a year later. “It’s driving a lot of our growth. That should be half of our business,” Gass said, expressing confidence that the momentum could continue.

True Religion, which does not disclose financials publicly, reported a 38% increase in denim sales between Aug. 20 and Aug. 22, a period when influencer Alix Earle and Kylie Jenner posted organically about the brand. Kristen D’Arcy, True Religion’s chief marketing officer and head of digital growth, noted the outsized impact of such posts and estimated the market value of a Kylie Jenner placement in the high six figures.

The long-term effects of American Eagle’s and Gap’s newer campaigns remain to be seen, but both have already generated cultural buzz and market attention. American Eagle’s Sweeney spot briefly turned the retailer into a meme-stock phenomenon before criticism of the ad’s tone tempered gains; a subsequent endorsement from President Donald Trump, who called it the “hottest ad out there,” sent the stock higher again. Jennifer Foyle, president and executive creative director for AE & Aerie, said the campaign generated billions of impressions and sparked a new conversation, exceeding expectations for cultural impact.