What happened

Shares of American Eagle Outfitters (AEO 4.89%) took flight on Thursday. Following the clothier's release of its latest set of quarterly and annual earnings, investors bid the stock up by 1.2% on the day. That modestly beat the S&P 500 index, which inched up by 0.8%.

So what

For its fiscal 2022 fourth quarter, which ended Jan. 28, American Eagle posted total net revenue of $1.5 billion. Although this exceeded both the company's own and analysts' expectations, it was down 1% on a year-over-year basis. Non-GAAP (adjusted) net income came in at $73.3 million, or $0.37 per share. That was up, if not spectacularly, from the year-ago figure of $71.6 million.

On average, prognosticators covering the clothing retailer were modeling for $1.48 billion on the top line and adjusted net income of $0.30 per share.

Management expressed a guardedly optimistic view of the company's immediate future.  "Our inventory levels are healthy. The global supply chain has stabilized, restoring agility to our operations with a more normalized cost environment," said CEO Jay Schottenstein in the press release. "Our brands are poised to deliver innovation and quality to our customers and to benefit from emerging fashion trends."

"Yet, our visibility into the macro remains limited and we are taking a cautious view on 2023," he added.

Now what

Reflecting this, American Eagle reiterated its previous guidance for both the current quarter and the entirety of its fiscal 2023. For the year, it expects flat to low-single-digit percentage revenue growth. Operating income should land in the $270 million to $310 million range, bettering the $269 million of 2022.