Engagement Ring and Fashion Brands See Stock Surge
Ralph Lauren and American Eagle Shares Rise
Swift’s Influence Extends Beyond Culture to the Economy
Following the news of pop star Taylor Swift's (35) engagement, the stock prices of several companies on the New York Stock Exchange reacted immediately.
On the 26th (local time), Swift and National Football League (NFL) player Travis Kelce (35) announced their engagement by posting photos on Instagram. The post generated explosive interest among fans, and related brands saw their stock prices rise in succession.
Pop star Taylor Swift and football player Travis Kelce announced their engagement on the 26th. Photo captured from Taylor Swift's Instagram.
First, the ring worn by Swift drew attention, causing the stock price of jewelry retailer Signet Jewelers to surge. According to CNBC, Signet Jewelers’ stock price rose by about 3% on the 26th, when Swift’s engagement news broke, and continued to climb by over 6% the following day, the 27th.
The stock price of Ralph Lauren, the clothing brand worn by both in the engagement photos, also rose for two consecutive days, increasing by 2% on the 26th and 0.5% on the 27th.
The clothing brand American Eagle saw its stock price jump by more than 8% in a single day on the 27th, following reports of a collaboration with Kelce’s sportswear brand True Colors. Considering the company had recently suffered from a backlash over a racially insensitive advertisement, this can be seen as a benefit from the so-called “Swift effect.”
The clothing brand America Eagle, which has been reported to collaborate with Kelsey’s sportswear brand True Colors. Screenshot from the True Colors website
CNBC evaluated that this engagement announcement once again proves Swift’s influence not only as a cultural icon but also across American businesses and the broader economy. With a single concert or social media activity, Swift drives massive consumer spending and attention, impacting not only the sales of specific companies but also local economies, and has even given rise to new terms such as “Swiftonomics” and “Swiftflation.”
Some companies responded quickly with marketing campaigns. Domino’s Pizza and the food delivery platform Grubhub sent notifications to app users featuring Swift’s songs and ring emojis, aiming to appeal to her fanbase.
CNBC reported, “Since the pandemic, Swift has been regarded as an economic force,” noting that the increase in consumer spending associated with her global ‘Eras Tour’ performances has drawn attention from Wall Street and the U.S. Federal Reserve.
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