Constellation Brands 2025 Stock Plunges Amid Weak Wine and Spirits Sales, Beer Sales Show Mixed Results
Constellation Brands' Q2 2025 revenue falls short of expectations as wine and spirits sales decline, despite strong beer performance.
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Essential Highlights
- Constellation Brands, renowned for Corona and Modelo beers, reports mixed Q2 2024 results with notable declines in wine and spirits sales.
- While beer sales remain robust, with Modelo Especial and Pacifico growing, Corona Extra experiences a slight downturn.
- CEO Bill Newlands attributes challenges to the prevailing macroeconomic environment impacting beverage alcohol demand.
In Q2 fiscal 2024, Constellation Brands (STZ), the producer of popular beers like Corona and Modelo, delivered mixed financial results as wine and spirits segments faced downturns.
The company posted diluted earnings per share of $4.32, surpassing analyst projections from Visible Alpha, yet total revenue increased modestly by 2.9% to $2.92 billion, missing forecasted targets.
Following the earnings release, Constellation Brands' shares dropped 3.9% during afternoon trading, leading declines within the S&P 500 on Thursday.
Beer sales showed strength: Modelo Especial, the leading U.S. beer, grew by 5%, Pacifico surged approximately 23%, while Corona Extra sales dipped by 3%.
Macroeconomic Pressures Impact Consumer Demand
Wine and spirits sales declined 12% to $388.7 million, influenced by a 9.8% decrease in shipment volumes.
CEO Bill Newlands highlighted that the "current macroeconomic backdrop has weighed heavily on demand for beverage alcohol," affecting broader consumer packaged goods categories.
Looking ahead, the company anticipates full-year net sales growth between 4% and 6%, with beer sales projected to rise 6% to 8%, while wine and spirits sales are expected to decline 4% to 6%.
UPDATE: Latest share price information has been incorporated into this report.
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