Overview
- Constellation reported first-quarter net sales of $2.52 billion, a 5.8% year-over-year decline that fell short of the $2.55 billion analysts expected.
- The company posted adjusted EPS of $3.22 per share, below the $3.31 consensus, as rising aluminum and beer import tariffs squeezed profitability.
- Beer shipment volumes declined 3.3% in the quarter and the segment’s operating margin contracted by 150 basis points to 39.1%.
- Constellation attributed weaker beer sales to socioeconomic concerns and ICE enforcement fears among Hispanic consumers, who represent about half of its beer base.
- Despite the disappointing quarter, management reiterated fiscal 2026 earnings guidance of $12.60 to $12.90 per share and expects organic net sales to range from a 2% decline to a 1% gain.