Stylish dress shirt maker Phillips-Van Heusen (NYSE:PVH) won't need any dressing down when it reports fourth-quarter 2006 financial results on Monday, March 26.

What analysts say:

  • Buy, sell, or waffle? After undressing the shirt maker, 12 analysts rate it a buy and just one says hold. Ooh la la!
  • Revenues. Sales of the stylish statement are expected to push revenues 15% higher, to $530 million.
  • Earnings. Profits, meanwhile, will grow a more understated 7%, or $0.44 per share.

What management says:
The haberdasher sells a number of well-known brands including Izod, Calvin Klein, Sean John, and Geoffrey Beane, along with the Hair Master's own line, Donald J. Trump Signature Collection. The Calvin Klein brand, however, has been a primary driver of sales -- which reached $568 million last quarter -- as the designer's outlet stores opened in premium malls. Coupled with an 11% increase in same-store sales at its various other retail operations, PVH has been successfully meeting the needs of the well-dressed man.

Those strong gains allowed management to affirm its own quarterly guidance of $0.43 per share, for which it didn't need to make any adjustments as it has in the past, as well as project at least 15% growth in 2007. It also won a licensing agreement to make and market a men's apparel line for Timberland (NYSE:TBL) in 2008, followed by a women's line in 2009.

What management does:
Although many retailers that cater to a more fickle shopper, like niche retailer Hot Topic (NASDAQ:HOTT), have seen a reversal of fortune lately, those that supply the adult male have found him to be a bit more staid. Jos. A. Bank (NASDAQ:JOSB) and Men's Wearhouse (NYSE:MW) have reported that sales are brisk without the necessity of resorting to margin-killing discounting. The same goes for PVH, which was able to do more full-price selling even at its outlet stores, which carry higher net margins.

Margin

10/05

01/06

04/06

07/06

10/06

Gross

46.5%

46.7%

47.6%

48.1%

48.8%

Operating

10.5%

10.9%

12%

12.5%

13%

Net

5.7%

5.9%

7%

7.2%

7.6%
All data courtesy of Capital IQ, a division of Standard & Poor's. Data reflects trailing-12-month performance for the quarters ended in the named months.

One Fool says:
While the Phillips-Van Heusen name carries a certain cachet and premium, that doesn't mean investors need to pay a premium for its stock, and right now it trades at a multiple higher than other men's retailers. It might be in line with Polo Ralph Lauren (NYSE:RL), but it's nearly twice as great as Oxford Industries (NYSE:OXM). Having nearly doubled in price over the past year, PVH's stock now trades at all-time highs. The business looks sound, but the stock seems priced for perfection.

Related Foolishness:

Phillips-Van Heusen has earned a four-star rating from Motley Fool CAPS, our new investor intelligence community. You can add your voice to the stock-rating service by joining today. It's free!

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Fool contributor Rich Duprey does not own any of the stocks mentioned in this article. You can see his holdings here. The Motley Fool has a disclosure policy.