Constellation Brands Modelo shares fall after guidance cut
Corona and Modelo beers were launched on April 3, 2025 at a market in Magnolia, Texas.
Ronaldo Schemidt | AFP | Getty Images
Constellation brands On Tuesday, he said that a “challenging” economy hit alcohol sales and reduced the full financial year’s appearance.
The company, which hosts popular brands such as Modelo and Corona, said that in April, higher US tariffs on beer will affect the sales and general consumer demand. The constellation on Tuesday reduced its comparable profitable earnings per share for Mali 2026 to $ 12.90 from $ 12.90 to $ 11.60.
The stock fell more than 6% on Tuesday and briefly reached the lowest level of 52 weeks. Constellation will attend the 2025 Barclays Global Consumer Staples Conference on Tuesday later.
“We continue to wander in a challenging macroeconomic environment that reduces consumer demand and has led to a more variable consumer purchase behavior since our first quarter of Mali 2026,” CEO Bill Newlands said in a statement. He said. “Over the last few months, high -level beer purchasing rates have slowed down sequentially because it has been spent on the travel frequency and the journey.”
Constellation predicts that organic net sales will decrease 2% than previous 1% growth expectation. This Metrik excludes the Svedka Vodka brand and wine brands that the company sells.
The company is waiting for net beer sales to fall Due to lower volumes and additional tariff effects, 2 to 4%. Previously expected sales will vary between flat and 3%. Constellation also reduces free cash flow forecast from $ 1.5 billion to $ 1.6 billion and $ 1.4 billion to $ 1.4 billion.
“We continue to focus against our strategic goals, including distribution earnings, disciplined innovation and investing behind our brands,” Newlands said. He said.
It also showed less demands than the company, a tendency of the company for several months. Newlands Added For the population, high -level beer sales were “more evident than general market decreases”.
The beer producer said that withdrawing from Spanish consumers about President Donald Trump’s concerns about immigration policies and potential losses. Constellation said it is about half of the beer sales of Spanish consumers in the United States.
The company took steps to compensate for its losses. In April, he announced that he replaced his portfolio by receiving the “mainstream” wines. Constellation also allowed a shares of a shares, which he said in the first half of the year, in the first half of the year, said it brought $ 604 million in repayments under the authority of a three -year -old share of $ 4 billion.
