Lifestyle clothing conglomerate VF Corp (NYSE: VFC) will be reporting results this Wednesday morning. Here’s what you need to know.
VF Corp missed analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $2.14 billion, down 4.6% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income 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 3.9% year on year to $1.7 billion, improving from the 10.1% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.33 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 Q2 results, giving us a hint as to what we can expect. Levi's delivered year-on-year revenue growth of 6.4%, beating analysts’ expectations by 5.8%, and Carter's reported revenues up 3.7%, topping estimates by 3.4%. Levi's traded up 11.1% following the results while Carter's was down 18.9%.
Read our full analysis of Levi’s results here and Carter’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 9.6% on average over the last month. VF Corp is up 7.2% during the same time and is heading into earnings with an average analyst price target of $14.82 (compared to the current share price of $12.60).
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