UPDATE 2-American Eagle tops estimates on robust demand, fewer discounts; shares jump

(Updates shares, adds background and details throughout)

March 7 (Reuters) - American Eagle Outfitters topped Wall Street expectations for the fourth quarter on Thursday, as consumers snapped up the apparel retailer's full-price items during the crucial holiday shopping season in the United States.

Shares of the company jumped about 11% in premarket trading, after it also forecast full-year and first-quarter revenue growth largely in line with analysts' expectations.

Like peers, the Aerie parent has worked towards trimming inventory levels and introducing fresh styles to appeal to budget-conscious consumers, who are wary of non-essential purchases in a choppy macro environment.

The company had lifted its fourth-quarter revenue target in January citing strong holiday sales as well as lower discounts on its products during the period.

In line with its strategy to steer its portfolio — which includes brands such as Aerie and Offline — towards higher-margin products, the company shared its long-term target of mid-to-high teens growth in annual operating income over the next three years.

For the fourth quarter ended Feb. 3, the company's gross margin rate grew 340 basis points to 37.3%, on easing input and transportation costs as well as fewer markdowns on its products.

The company's revenue grew 12% to $1.68 billion, compared with LSEG estimates of an 11.3% growth to $1.66 billion.

Excluding items, American Eagle earned 61 cents per share for the fourth quarter, compared with expectations of 50 cents.

The Todd Snyder-parent expects annual revenue to rise between 2% and 4%, versus analysts' average estimate of a 2.9% growth. (Reporting by Juveria Tabassum; Editing by Shilpi Majumdar)