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Constellation Brands trimmed its sales outlook and announced plans to sell some of its lower-cost wine brands.
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The alcoholic drinks maker said the change reflects "the anticipated impact" of tariffs.
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Constellation shares have lost close to a third of their value in the past 12 months.
Constellation Brands (STZ) trimmed its sales outlook and announced plans to sell some of its lower-cost wine brands.
For fiscal 2026, the alcoholic drinks maker projected adjusted earnings per share (EPS) of $12.60 to $12.90, below the consensus from analysts surveyed by Visible Alpha. The company also slashed its enterprise net sales projection to a decline of 2% to a rise of 1%. Previously, it had projected an increase of 2% to 4%. It also trimmed its fiscal 2027 to 2028 forecasts.
Those lowered projections, Constellation said, reflects "the anticipated impact" of the reciprocal tariffs announced on April 2 as well as those against Canada on March 4.
Those changes to its outlook came as Constellation posted fourth-quarter adjusted EPS of $2.63 on net sales of $2.16 billion, ahead of analysts' estimates.
The company also said that as part of a multi-year restructuring, it is also selling some of its lower-cost wine brands. It is keeping those brands “predominantly priced $15 and above” such as Robert Mondavi Winery and Kim Crawford.
Constellation shares were little changed in recent trading. They've lost close to a third of their value in the past 12 months.
UPDATE—April 10, 2025: This article has been updated since it was first published to reflect more recent share price values.
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