Clothing company Kontoor Brands (NYSE:KTB) will be reporting earnings tomorrow morning. Here's what to expect.

Kontoor Brands missed analysts' revenue expectations by 7.7% last quarter, reporting revenues of $669.8 million, down 8.4% year on year. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations.

Is Kontoor Brands a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Kontoor Brands's revenue to decline 8.9% year on year to $607.9 million, a further deceleration from the 1.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.91 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. Kontoor Brands has missed Wall Street's revenue estimates four times over the last two years.

Looking at Kontoor Brands's peers in the apparel, accessories and luxury goods segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Carter's revenues decreased 4.9% year on year, beating analysts' expectations by 3.3%, and Levi's reported a revenue decline of 7.8%, in line with consensus estimates. Carter's traded down 1.5% following the results while Levi's was up 12.3%.

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 the beginning of 2024 has seen more volatile stock performance thanks to mixed inflation data, and while some of the apparel, accessories and luxury goods stocks have fared somewhat better, they have not been spared, with share prices down 5.9% on average over the last month. Kontoor Brands is up 8.4% during the same time and is heading into earnings with an average analyst price target of $64.4 (compared to the current share price of $62.06).

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