PVH (PVH 17.99%) stock posted big gains in Tuesday's trading following the release of the company's fiscal fourth-quarter earnings report. The clothing company's share price closed out the day's trading up 18%.

After the market closed yesterday, PVH published results for the fourth quarter of its last fiscal year, which ended Feb. 2. The company posted sales and earnings for the period that beat the market's expectations, and it also issued solid forward guidance and announced an accelerated stock buyback plan.

PVH stock surges on Q4 results

PVH posted non-GAAP (generally accepted accounting principles) adjusted earnings per share of $3.27 on revenue of $2.37 billion in fiscal Q4, beating the average Wall Street estimate for per-share earnings of $3.19 on sales of $2.33 billion. Revenue was actually down 5% year over year in the period, but the performance was partially impacted by currency-exchange headwinds and still managed to come in ahead of the market's expectations. Margins were also better than anticipated, and the company said that it saw strong performance for its Calvin Klein and Tommy Hilfiger brands in the quarter.

What's next for PVH?

For this year, PVH is guiding for sales to come in at roughly the same level or slightly higher than sales in 2024. Meanwhile, adjusted earnings per share for the period are projected to come in between $12.40 and $12.75 -- up from adjusted earnings of $11.74 per share last year.

The earnings growth will be supported by an accelerated $500 million stock buyback initiative, which will have the effect of reducing the company's total shares outstanding and distributing profits across a smaller number of shares. Investors are clearly happy with last quarter's performance and the updated earnings outlook.