Shares of PVH Corp (NYSE: PVH), the parent company of Calvin Klein and Tommy Hilfiger, surged 18.05% in pre-market trading on Tuesday following the release of better-than-expected fourth-quarter results, an optimistic outlook for fiscal year 2025, and the announcement of a significant share repurchase program.

The company reported fourth-quarter earnings per share of $3.27, surpassing analyst estimates of $3.21. Revenue came in at $2.37 billion, beating expectations of $2.33 billion. Despite a 4.8% year-over-year decline in revenue, PVH's performance exceeded its own guidance range, demonstrating resilience in a challenging retail environment.

Investors were particularly encouraged by PVH's strong guidance for fiscal 2025. The company projected full-year earnings per share between $12.40 and $12.75, significantly higher than the analyst consensus of $11.43. PVH also anticipates revenue to be flat to slightly higher compared to 2024, surpassing market expectations of a slight decline.

Adding to the positive sentiment, PVH announced plans to repurchase $500 million worth of shares in 2025 through accelerated share repurchase agreements. This move demonstrates the company's confidence in its future prospects and commitment to returning value to shareholders.

Stefan Larsson, Chief Executive Officer, commented on the results: "Driven by the strength of our two iconic global brands, Calvin Klein and Tommy Hilfiger, and our disciplined execution of our PVH+ Plan, we finished the year strong and are well-positioned for 2025. In 2024, we beat our EPS guidance on a non-GAAP basis and delivered better-than-expected revenue in constant currency, with record gross margins and double-digit non-GAAP EBIT margin."

The strong performance and optimistic outlook suggest that PVH is successfully navigating challenges in the retail sector and capitalizing on the strength of its global brands. Investors appear to be responding positively to the company's strategic initiatives and financial discipline, driving the significant pre-market stock price increase.