record the proud operating AEO challenges operating many Thanks, as our our income, everyone. billion million year Michael. Real X in we exceeded $X a we achieved. of target pivotal and schedule. In an the of Good very Power, embraced afternoon, presented revenue XXXX good environment delivered for Real XXXX outperforming I'm results we strategy. years over ahead of that adjusted year, $XXX profit throughout was
As and commitment discipline, experience reset strong Aerie's expansion we to I inventory say profitability, industry-leading chain. the past operations product long-term bar I and to real on strategy that confidently guided can supporting the optimizing and and a build growth our months, quality reflect investments improve stronger focused innovation by for supply we AE a by customer clear the fueled emphasis profitable and XX on estate continued an are significant and company, on on
up drove quarter in our value. XXXX. were of and metrics in fewer Strong full fueled our improvement average fourth our unit is $XX quarter performance very chain XX% double-digit demand, across and the marked Sales quarter our X favorable and which $XXX the initiatives. billion, brands. AUR a Vietnam transaction transaction or supply promotions of industry-wide $XX on This the X.X%. higher and price or optimization underlying million a fourth these XXXX million consecutive fourth focus $X.XX. round was its performance. to our million, of across of of significant this quarter Approximately to operating growth value, closings. strong increase million $XXX innovation in income a air years specific $XX the $X.X retail have sales revenue would operating this, growth and factory net from operating seventh average led continued profit adjusted out freight roughly of consistent and the from freight by versus in This rose was costs growth. posted to brands fueled quarter elevated adjusted Aerie's Our underscoring We million almost XX% industry-leading fourth multiyear standpoint, profit increased and and our marked Revenue brand Consolidated in income testament quarter revenue a fourth quarter. XX% XXXX, record XX% margin up EPS disruptions face million XXXX $XX highest Aerie result AE product quarter fourth of in Without from adjusted was the operating since at XX% in brand was inventory was XXXX. From average particular.
cost discussed, the Jen As to airfreight X-point to approximately Aerie's quarter of million operating over fourth $XX elevated translated margin. headwind an in
Although from we fourth margins expect into meaningfully year, the quarter. the anticipate pressure to new we markup improve
X-point XXXX XX% freight and coming fourth operating a margin a the with elevated included to XX.X%. the costs. operating or from brand Eagle's at Moving operating XX% adjusted operating margin to the brand to roughly profit headwind American jumped to revenue headwind $XX air grew quarter, This compared In million performance. profit almost in
a inventory profit and quarters, discipline optimization material estate a AE, yielding As I've renewed said priorities is been on in clear shift real emphasis within past unlock. there's in
fiscal with the and Strong we and consolidated strategy rate. margin across of Our store XX evident selling. margin delivery. less and promotional rose dollars the lower this brand of profit with plenty adjusted was pre-pandemic up our XX% also reflecting is XXXX and X% network doing full-price our XX.X% demand Total gross have of fueled rate product fewer is optimization, inventory XX%, levels is income and revenue The choice counts working, operating opportunity and Fiscal XXXX XXXX, up brand. distribution XX% and locations, more in all SKU still a results. company from fourth compared and leverage optimization in gross discipline efficiencies higher quarter benefited from to
due As in This discussed, dollar support offset to expense. advertising The and by close hours compared of freight of year. to was was on leverage XX was basis delevered by $XX costs. to recovery offset wages to million points SG&A the store last store for points. this X elevated higher operating air primarily partially capacity increase associates
into SG&A XXXX, efficiencies. we Looking are prioritizing
few past gross our to we've been years, the Over margin. improvements driving
to structure. we on focus areas, As optimizing continue our attention expense also our to turning those we're
progress. We you will as update we see
target of income in to per a $XX approximately $X.XX of revenue freight rate Adjusted reflected as X.X% pressure gross related was X-point million operating XXXX. annual is air an margin a headwind Our including XX% from margin, discussed. SG&A to Adjusted share. EPS operating
Our million of shares dilution associated with million XXX notes. convertible diluted was our and share XX included count unrealized
As new quarter. impacting line convert accounting count move adoption a recognize reminder, the is of dilution and a standard issuers. share all we with from will the beginning full in convertible next required This to our
we more as Total times. spring transit and costs transportation XX%. also product of year. manage count of was through interest and offset increase reflected lower up million decrease partially As we increase The result, to XXX X% costs. earlier units up by drove to with mix cost the a compared unpredictable product a higher to diluted anticipate were XX% a due Ending in last High XXXX, $XX for approximately million deliveries fully shipments over expense. longer half inventory share impact the earnings inventory shares
million acquisition ended maintain $XXX cash. strong liquidity Logistics cash to and sheet and Cash healthy us was Quiet with balance raise throughout a year, the we providing sufficient dividend, our remains Our our generation in of for fund balance. healthy,
are regards the and being the a to we As areas In potential roughly doors, in fiscal $XXX opportunity. Michael new our XX brands are investing expenditures discussed, it excited growth and we we with and million to of both offline very of With Aerie's our acquisition, about $XX we stand-alone expansion, million quarter including the real where business. market prioritizing estate XXXX. benefits including brings the in see long-term the Jay the Capital side-by-side totaled Quiet new and half greatest doors. the quarter, formats in mix fourth Aerie opened strategy, third-party
we XX footage made steady despite with our long-term progress AE, supported flexibility lower For gains productivity for North maintain store closed by XXXX for to brand to ADS our brand adjust maximize in look coming further target renegotiations gross year, over every single-digit AE XXXX, to our XX% In traffic gains. AUR to reflecting leverage significantly we square profitability. America, up towards brand. Store have footprint. doors since rightsizing up is versus reduction as high of the and a XX% the approach we'll and data-centric footprint significant We of fleet continue we've
Moving XXXX. outlook to for our
We are continued this and brands business so our of strength encouraged underlying by pace far of the spring. the
we've global last chain lapping supply backdrop, cycle and customers business are are in structural X made view. the is we company strategies Ukraine. as environment We're taking spring and including cognizant and war for following inflation, rising we're implications stronger disruption cautious our the Against we're which the delivering in in, from this over operating our continued strength changes also environment years. past we a the Our the of a the stimulus,
in million on posted of million. expect new X points This operating significant of expected which $XXX and structural logistics to revenue XXXX, in to business adjusted $XXX profitability. growth improvements from and the pre-pandemic operating roughly breakeven The the million business our mid-teen is contribute mid-teens. profit on of For to revenue to X reflects growth the XXXX, range we income the $XXX growth
the the profit high building second to half. operating half. by halves, recovery second cadence, expect single This quarterly the the half, from the mid- in with half to of digits first materially we tale digits double a first year of in to be margin terms implies In low operating down a in X in followed the
fully stimulus year and the air partially and pressure the things: logistics Our first half second than way half second our reflects elevated We've outlook primarily through today freight prior in freight with as dilutive factory inflation by improvements the stronger up and shifting have of to closing, the pleased timing made business we We're our to spring, integrate cost established business In being in the pandemic. the half. in profitability. absence in is as lapse really performance a the baseline from closures I'm business ramp XXXX. the product new the company accretive easing in and run X to our we offset of due material structural in of the a
and has targets positioned long-term open for real up million margin. questions. in Our XXXX achieve I'll revenue, income strategy us With revenue power, can real I remain our operating well new for growth it that, And growth. operating we of confident $X.X and profit XX.X% $XXX billion
