Lifestyle clothing conglomerate VF Corp (NYSE:VFC) will be reporting earnings tomorrow after market close. Here’s what investors should know.

VF Corp missed analysts’ revenue expectations by 4.1% last quarter, reporting revenues of $1.77 billion, down 10.1% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ constant currency revenue estimates but a miss of analysts’ EBITDA estimates.

Is VF Corp a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting VF Corp’s revenue to decline 7.1% year on year to $2.71 billion, a further deceleration from the 5.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.38 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. VF Corp has missed Wall Street’s revenue estimates six times over the last two years.

Looking at VF Corp’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Carter’s revenues decreased 4.2% year on year, meeting analysts’ expectations, and Levi's reported flat revenue, falling short of estimates by 2.4%. Levi's traded down 7.6% following the results.

Read our full analysis of Carter’s results here and Levi’s results here.

Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But 2024 has seen more volatile stock performance thanks to mixed inflation data, and while some of the consumer discretionary stocks have fared somewhat better, they have not been spared, with share prices down 2% on average over the last month. VF Corp is down 16.3% during the same time and is heading into earnings with an average analyst price target of $19.26 (compared to the current share price of $16.70).

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