Constellation Brands Lowers Growth Forecast as Consumer Spending Declines

The maker of Modelo and Corona beers revised its fiscal 2025 outlook, citing uncertainty in consumer behavior and weakened demand for wine and spirits.

• Constellation Brands reduced its fiscal 2025 earnings forecast to a range of $13.40 to $13.80 per share, down from the previous $13.60 to $13.80 estimate.
• Projected annual net sales growth was also lowered to 2%-5%, compared to the earlier forecast of 4%-6%.
• CEO Bill Newlands attributed the adjustment to persistent inflation and uncertainty about when consumer spending will normalize.
• The company’s beer segment, led by brands like Modelo and Corona, saw modest growth, but its wine and spirits business continued to struggle with declining demand and retailer inventory reductions.
• Constellation Brands’ stock dropped nearly 15% in intraday trading and has lost over 25% of its value in the past year.

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