Constellation Brands ( (STZ) ) has released its Q1 earnings. Here is a breakdown of the information Constellation Brands presented to its investors.
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Constellation Brands, Inc. is a leading international producer and marketer of beer, wine, and spirits, with a strong presence in the U.S., Mexico, New Zealand, and Italy. The company is known for its high-end imported beer portfolio, including brands like Corona Extra and Modelo Especial, and is committed to sustainable and responsible operations.
In its latest earnings report for the first quarter of fiscal year 2026, Constellation Brands highlighted several key achievements and challenges. The company reported a decline in net sales and operating income compared to the previous year, attributed to socioeconomic headwinds affecting consumer demand. Despite these challenges, the Beer Business continued to outperform, gaining market share in the U.S. and maintaining strong brand health through strategic marketing investments.
The Beer Business reported a 2% decrease in net sales, driven by a 3.3% decline in shipment volumes. However, it remained the top dollar share gainer in the U.S. beer category, with brands like Modelo Especial and Pacifico showing strong performance. The Wine and Spirits segment faced a 28% decline in net sales due to the SVEDKA Divestiture and weaker consumer demand, but the remaining portfolio aligned with higher-growth, higher-margin brands.
Constellation Brands returned over $300 million to shareholders through share repurchases and declared a quarterly cash dividend of $1.02 per share. The company updated its fiscal 2026 reported EPS outlook to $12.07 – $12.37, maintaining a comparable EPS outlook of $12.60 – $12.90. Management remains focused on executing strategic initiatives to navigate current challenges and drive long-term growth.
Looking ahead, Constellation Brands remains committed to its capital allocation priorities and expects to achieve its operating cash flow and free cash flow targets for fiscal 2026. The company continues to invest in its beer operations and aims to capitalize on premiumization trends in the wine and spirits market.