Penfolds Maker Treasury Scraps 2026 Guidance on China, US Uncertainty

Core Insights - Treasury Wine Estates Ltd. shares have fallen to a 10-year low after the company withdrew its earnings guidance for the 2026 financial year and paused a planned share buy-back due to uncertain market conditions in China and California [1][4]. Market Performance - The company's stock price dropped by as much as 14% on Monday morning, reaching its lowest point since September 2015, following the announcement of the earnings guidance withdrawal [2]. - The planned A$200 million ($130 million) share buy-back has been paused after being 15% completed, reflecting the company's cautious outlook [6]. Market Challenges - Lower-than-expected stock depletions in China during September have raised concerns that the depletion targets for the 2026 financial year may not be met [2][5]. - A distributor transition in California is negatively impacting Treasury Americas' performance, leading the company to retract its guidance for modest EBITS growth in that region [3]. Leadership Transition - The announcement of the earnings guidance withdrawal and share buy-back pause comes as new CEO Sam Fischer prepares to take over from outgoing head Tim Ford, highlighting the challenges facing the new leadership [4].