Cases of Mexican beer are seen at a supermarket in Houston, Texas, on July 15, 2025. <\/p>\n
Ronaldo Schemidt | AFP | Getty Images<\/p>\n
Constellation Brands<\/a> on Tuesday slashed its full fiscal year outlook, saying a “challenging” economy is hitting its alcohol sales.<\/p>\n The company, home to popular brands like Modelo and Corona, had previously said<\/a> in April that higher U.S. tariffs on beer would affect its sales and overall consumer demand. Constellation on Tuesday cut its comparable earnings per share outlook for its fiscal 2026 to a range of $11.30 to $11.60, down from $12.60 to $12.90.<\/p>\n The stock fell about 8% before the bell. Constellation is set to participate in the 2025 Barclays Global Consumer Staples Conference later on Tuesday.<\/p>\n “We continue to navigate a challenging macroeconomic environment that has dampened consumer demand and led to more volatile consumer purchasing behavior since our first quarter of fiscal 2026,” CEO Bill\u00a0Newlands said in a statement. “Over the last several months, high-end beer buy rates decelerated sequentially, as both trip frequency and spend per trip declined.”<\/p>\n Constellation anticipates organic net sales will fall 4% to 6%, down from a previous expectation of 1% growth to a 2% decline. That metric excludes the Svedka vodka brand and wine brands the company sold.<\/p>\n The company expects net beer sales will fall 2% to 4% due to lower volumes and additional tariff impacts. It previously anticipated sales would range from flat to up 3%. Constellation is also lowering its free cash flow estimate from $1.5 to $1.6 billion to $1.3 to $1.4 billion.<\/p>\n “We remain resolutely focused on continuing to execute against our strategic objectives, including driving distribution gains, disciplined innovation, and investing behind our brands,” Newlands said.<\/p>\n He also pointed to lower demand from Hispanic consumers, a trend the company has seen for several months. Newlands added that high-end beer sales for the population were “more pronounced than general market declines.”<\/p>\n The brewer previously said <\/a>the pullback was caused by Hispanic consumers’ concerns about President Donald Trump’s immigration policies and potential job losses. Constellation has said<\/a> Hispanic consumers in the U.S. account for about half of its beer sales.<\/p>\n The company has made strides to make up for its losses. In April, it announced it was repositioning its portfolio by divesting “mainstream” wines. Constellation also authorized a share repurchase program, which it said on Tuesday has led to $604 million in buybacks in the first half of the fiscal year under its three-year $4 billion share repurchase authorization.<\/p>\n","protected":false},"excerpt":{"rendered":"Cases of Mexican beer are seen at a supermarket in Houston, Texas, on July 15, 2025. Ronaldo Schemidt…\n","protected":false},"author":2,"featured_media":127367,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[27148,28,122,71624,2538],"class_list":["post-127366","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-beverages","tag-business","tag-business-news","tag-constellation-brands-inc","tag-food-and-drink"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/127366","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=127366"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/127366\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/127367"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=127366"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=127366"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=127366"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}