American Eagle Outfitters (AEO) has posted sales growth for the fourth quarter, mainly driven by the good performance of its Aerie brand.

The company’s comparable sales for the quarter ended February 1 rose 3 per cent, including a 6 per cent increase at Aerie and 1 per cent uplift at American Eagle.

Total net revenue fell 4 per cent to $1.6 billion due to this quarter having one fewer trading week compared to the year-ago period.

For the full year, comparable sales increased 4 per cent off the back of a 3 per cent growth in the prior year, with Aerie up 5 per cent and American Eagle up 3 per cent. 

Net revenue increased 1 per cent to $5.3 billion, including an approximately $60 million adverse impact from one less selling week.

Executive chairman and CEO Jay Schottenstein attributed the results to the company’s growth plan, which focused on delivering positive momentum across brands and channels, managing expenses, and boosting operating efficiencies.

“Entering 2025, the first quarter is off to a slower start than expected, reflecting less robust demand and colder weather. While we anticipate improvement as the Spring season gets underway, we are also taking proactive steps to strengthen the top-line, manage inventory and reduce expenses,” Schottenstein continued.

The company expects revenue to decrease by mid-single digit in the first quarter of FY25 and by low-single digit for the full year.