Constellation Brands Shares Dip Despite Strong Beer Sales
The company reports mixed earnings due to declining wine and spirits sales amid a challenging economic climate.
- Constellation Brands' second-quarter earnings exceeded expectations with $4.32 per share, but revenue fell short, rising 2.9% to $2.92 billion.
- Beer sales were robust, with Modelo Especial increasing by 5% and Pacifico surging by 23%, although Corona Extra sales dropped by 3%.
- The wine and spirits division struggled, with sales declining 12% due to a nearly 10% drop in shipment volumes.
- CEO Bill Newlands attributed the weak performance in wine and spirits to the current macroeconomic challenges affecting consumer demand.
- Despite the strong beer performance, Constellation's stock fell 3.9% amid concerns about the underperforming wine and spirits segment.
CNBC 
Investopedia 
