NewTradingView.com – Investing and Stock News
Investing and Stock News
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Stock

Tariffs and weaker beer demand are weighing on Modelo owner Constellation Brands

by July 3, 2025
written by July 3, 2025

Constellation Brands on Tuesday reported quarterly earnings and revenue that missed analysts’ estimates as beer demand slid and tariffs on aluminum weighed on its profitability.

Still, the brewer reiterated its forecast for fiscal 2026, showing confidence that it can hit its financial targets despite the weaker-than-expected quarterly performance and higher duties.

Shares of the company fell less than 1% in extended trading on Tuesday evening but rose 3% during morning trading on Wednesday after the company’s conference call.

The stock has shed more than 20% of its value this year, fueled by concerns about how the higher duties imposed by President Donald Trump would affect demand for its beer.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

The report, which covers the three months ended May 31, includes the start of Trump’s tariffs on canned beer imports in early April. He also hiked trade duties on aluminum to 25% in mid-March and to 50% in early June.

Both imported beer and aluminum are crucial to Constellation’s beer business, which accounts for roughly 80% of the company’s overall revenue. Constellation’s beer portfolio only includes Mexican imports, like Corona, Pacifico and Modelo Especial, which overtook Bud Light as the top-selling beer brand in the U.S. two years ago.

Constellation reported fiscal first-quarter net income of $516.1 million, or $2.90 per share, down from $877 million, or $4.78 per share, a year earlier. Constellation’s operating margin fell 150 basis points, or 1.5%, in the quarter, in part driven by higher aluminum costs.

Excluding items, the brewer earned $3.22 per share.

Net sales dropped 5.8% to $2.52 billion, fueled by weaker demand for its beer and the company’s divestiture of Svedka vodka.

Constellation is still facing softer consumer demand, CEO Bill Newlands said in a statement. He attributed the weaker sales to “non-structural socioeconomic factors.” Constellation’s beer business saw shipment volumes fall 3.3%, caused by weaker consumer demand.

Last quarter, Newlands said Hispanic consumers were buying less of the company’s beer because of fears over Trump’s immigration policy. Roughly half of Constellation’s beer sales come from Hispanic consumers, according to the company.

But on Wednesday, Newlands demurred when asked about Hispanic consumer sentiment, saying that all shoppers are concerned about higher prices.

“When you see a fair amount of change, both Hispanic and non-Hispanic consumers are concerned about inflation and about cost structure,” Newlands said.

He added that consumers aren’t going out to eat as much and hosting fewer social occasions, which means they are drinking less beer. Still, he maintained that consumer interest in drinking beer hasn’t waned; while shoppers’ overall spending on beer has fallen, their relative spend on beer compared with their total grocery bill has held steady.

For fiscal 2026, Constellation continues to expect comparable earnings per share of $12.60 to $12.90. The company is projecting that organic net sales will range from declining 2% to rising 1%.

This post appeared first on NBC NEWS
0 comment
0
FacebookTwitterPinterestEmail

previous post
White House reveals highest-paid staffers–and 8 taking no salaries
next post
Jeffries stalls Trump’s ‘big, beautiful bill’ for hours after House GOP mutiny breakthrough

You may also like

Union Pacific to buy Norfolk in $85 billion...

July 29, 2025

Things are getting better at Boeing under CEO...

July 29, 2025

Elon Musk confirms Tesla has signed a $16.5...

July 28, 2025

Palantir joins list of 20 most valuable U.S....

July 26, 2025

Microsoft’s Satya Nadella says job cuts have been...

July 25, 2025

FCC greenlights Paramount’s $8 billion merger with entertainment...

July 25, 2025

Alphabet beats earnings expectations, raises spending forecast

July 25, 2025

Uber will let women drivers and riders request...

July 25, 2025

UnitedHealth says it faces DOJ investigation over Medicare...

July 25, 2025

UnitedHealth says it is facing DOJ investigation over...

July 24, 2025
Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!




    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Popular Posts

    • 1

      Oil and natural gas: Oil is back on the positive side

    • 2

      Gold and Silver: Gold remains stable in the $2420 zone

    • 3

      The dollar index continues to pull back to a new low

    • 4

      IonQ Stock Review: Should You Consider Investing Now?

    • 5

      Bitcoin Rebounds to $83,404 Amid Renewed Investor Confidence

    Recent Posts

    • Trump pick Emil Bove confirmed as federal judge after furious Democrat walkout, whistleblower complaints

      July 30, 2025
    • Trump’s CDC pick confirmed—but her pro-vaccine stance may clash with RFK Jr.’s agenda

      July 29, 2025
    • Union Pacific to buy Norfolk in $85 billion mega U.S. railroad deal

      July 29, 2025
    • ‘Critical’ closed-door congressional huddle focuses on growing antisemitism in US, Mamdani’s rise

      July 29, 2025
    • Starmer says UK to recognize Palestinian state if Israel doesn’t agree to ceasefire, Hamas must ‘disarm’

      July 29, 2025

    Categories

    • Economy (20)
    • Editor's Pick (501)
    • Investing (20)
    • Stock (50)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: NewTradingView.com, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2025 NewTradingView.com All Rights Reserved.


    Back To Top
    NewTradingView.com – Investing and Stock News
    • Investing
    • Stock
    • Economy
    • Editor’s Pick