Financial Data and Key Metrics Changes - The company achieved record revenue of $5.3 billion, reflecting a 4% comparable sales growth [6][9] - Adjusted operating profit reached $445 million, marking a 19% increase from the previous year [27][28] - Fourth quarter operating income was $142 million, the highest in over a decade [8][28] - Full year cash flow from operations exceeded $470 million, with over $280 million returned to shareholders through buybacks and dividends [9][31] Business Line Data and Key Metrics Changes - American Eagle's comparable sales rose 1%, while Aerie's comparable sales increased by 6% [7][10] - Aerie crossed $1.7 billion in revenue, with strong performance in soft apparel and activewear [10][20] - Women's apparel saw high single-digit comps, while men's apparel showed sequential improvement [17][19] Market Data and Key Metrics Changes - The company noted that warmer markets performed better than colder ones, with specific categories like sweaters outperforming in colder climates [25][107] - The first quarter of 2025 is expected to see a mid-single-digit revenue decline due to a less robust consumer environment and cold weather [12][33] Company Strategy and Development Direction - The company launched the "Powering Profitable Growth" strategy, focusing on amplifying brands, optimizing operations, and executing with financial discipline [6][9] - There is a heightened emphasis on improving operating capabilities and building speed in the supply chain [11][32] - The company plans to increase share repurchase authorization, reflecting confidence in long-term growth prospects [14][31] Management's Comments on Operating Environment and Future Outlook - Management indicated that 2025 has started off softer than anticipated, with ongoing consumer uncertainty and external factors like tariffs impacting operations [12][33] - The management remains optimistic about long-term growth opportunities despite current challenges [26][37] - The company is taking proactive actions to drive additional expense savings and improve top-line growth [13][32] Other Important Information - The company reported a strong balance sheet with approximately $359 million in cash and investments [31] - Capital expenditures for the year are expected to be around $300 million, including investments in digital platforms and automation [37] Q&A Session Summary Question: Differences in performance between warmer and colder markets - Management noted that warmer markets have seen better comps, but specific figures were not disclosed [40][42] Question: Control over SG&A expenses moving forward - Management expressed confidence in maintaining expense controls and leveraging SG&A for future growth [41][43][46] Question: Early spring selling trends and revenue outlook - Management acknowledged headwinds in early spring but emphasized readiness to adjust inventory and respond to market demands [49][51] Question: Gross margin outlook and assumptions - Management indicated that gross margin is expected to be down in the first quarter due to markdowns and product costs, with improvements anticipated in the second half [52][70] Question: Tariff exposure and mitigation strategies - Management reported a reduction in tariff exposure from China and Vietnam, with plans to further mitigate impacts [76][82] Question: Performance of digital and store channels - Digital channels outperformed stores in the fourth quarter, with plans for continued investment in both areas [102][104]