Why Constellation Brands Lost 17% in September

Group 1 - Constellation Brands' shares fell 17% after the company cut its fiscal 2026 guidance due to negative consumer trends and tariffs affecting the alcohol sector [1][2][3] - The company now expects beer net sales to decline by 2% to 4%, down from previous guidance of flat to 3% growth, and overall organic net sales to fall by 4% to 6% [3] - Adjusted earnings-per-share forecast was reduced from a range of $12.60 to $12.90 to between $11.30 and $11.60 [3] Group 2 - CEO Bill Newlands highlighted a deceleration in high-end beer buy rates, particularly among Hispanic consumers, indicating challenges from immigration policies [4] - Wall Street has adjusted forecasts, with BNP Paribas Exane downgrading the stock to underperform and setting a price target of $123, citing structural demand issues [5] - The alcohol sector is facing challenges such as reciprocal tariffs, reduced alcohol consumption among Gen Z, and pressures on discretionary spending [8] Group 3 - Despite the challenges, Constellation Brands has gained market share, growing volume share in 49 of 50 states and being recognized as the top dollar share gainer in its beer business [6][9]