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4h ago

Constellation Brands Tops Q2 Estimates, Keeps Slashed Outlook as Sales Fall

Tariffs alongside weaker Hispanic demand led management to keep a sharply reduced outlook.

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Bottles of the beer, Corona, a brand of Constellation Brands Inc., sit on a supermarket shelf in Los Angeles, California April 1, 2015. REUTERS/Lucy Nicholson/File Photo

Overview

  • The brewer reported adjusted EPS of $3.63 on revenue of $2.48 billion, beating LSEG estimates of $3.38 and $2.46 billion.
  • Net sales declined 15% from a year earlier and operating margin contracted 200 basis points, with aluminum tariffs identified as a key drag.
  • Beer performance outpaced broader trends, though depletion volume fell 2.7% and shipments dropped 8.7% for the quarter.
  • Management reiterated fiscal 2026 guidance for comparable EPS of $11.30 to $11.60 and projected organic net sales down 4% to 6%.
  • Executives cited a challenging socioeconomic backdrop with softer demand from Hispanic consumers tied to immigration policy concerns, while shares rose roughly 3%–4% after hours following a roughly 37% year-to-date slide.