Constellation Brands announced on September 2, 2025, a significant cut to its full fiscal-year 2026 outlook, citing a 'challenging macroeconomic environment' that has dampened consumer demand. The company lowered its comparable earnings per share (EPS) forecast to a range of $11.30 to $11.60, down from its previous projection of $12.60 to $12.90.
The revised outlook also includes an anticipated organic net sales decline of 4% to 6%, a notable reduction from the prior expectation of 1% growth to a 2% decline. Net beer sales are now expected to fall 2% to 4%, compared to the earlier forecast of flat to up 3%, due to lower volumes and additional tariff impacts.
CEO Bill Newlands highlighted a deceleration in high-end beer buy rates, with declines in both trip frequency and spend per trip. He specifically pointed to lower demand from Hispanic consumers, noting that these declines were 'more pronounced than general market declines,' a trend the company has observed for several months due to concerns about immigration policies and potential job losses.
Furthermore, Constellation Brands lowered its free cash flow estimate for fiscal 2026 to a range of $1.3 billion to $1.4 billion, down from the previous $1.5 billion to $1.6 billion. The company stated it remains focused on driving distribution gains, disciplined innovation, and investing behind its brands to navigate these headwinds.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.