Constellation Brands Stock Falls as Results Hurt by Weak Wine and Spirits Sales

Core Insights - Constellation Brands reported mixed second-quarter results, with strong beer sales but a decline in wine and spirits sales [1][4] - The company’s diluted earnings per share for the second quarter of fiscal 2025 was $4.32, exceeding analyst estimates, while revenue increased by 2.9% to $2.92 billion, falling short of forecasts [2] - CEO Bill Newlands indicated that the beverage alcohol market is facing challenges due to the current macroeconomic environment [1][4] Beer Sales Performance - Sales of Modelo Especial, the top-selling beer in the U.S., increased by 5%, while Pacifico saw a significant surge of around 23%. However, sales of Corona Extra decreased by 3% [3] - Overall beer sales contributed positively to the company’s performance in the quarter [1] Wine and Spirits Sales Decline - Wine and spirits sales fell by 12% to $388.7 million, primarily due to a 9.8% decline in shipment volumes [4] - The company anticipates full-year net sales growth of 4% to 6%, with beer sales projected to rise by 6% to 8%, while wine and spirits sales are expected to decline by 4% to 6% [4]