Boston Beer backs FY25 adjusted EPS view $8.00-$10.50, consensus $9.00

Cuts FY25 capital spending view to $70M-$90M from $90M-$110M. Cuts FY25 depletions and shipments view to down high single digits to down low single digits from down low single digits to up low single digits. The company said, “The Company’s business is seasonal, with the first quarter and fourth quarter being lower volume quarters and the fourth quarter typically the lowest absolute gross margin rate of the year. The Company expects that the trend of shipments exceeding depletions will reverse in the second half of the year. The third quarter is a much larger volume quarter than the fourth quarter given the seasonality of the business. In the prior year the Company was not able to fully ship to meet demand in the second quarter and caught up in the third quarter. As a result of seasonality and the comparison to prior year, the Company expects most of the 2025 shipment reversal to occur in the third quarter with shipment declines expected to be in the low to mid-teens. During full year 2025, the Company continues to estimate that shortfall fees and non-cash expense of third-party production pre-payments will have a combined negative impact to gross margin of 100 to 140 basis points. The advertising, selling and promotional expense projection does not include any changes in freight costs for the shipment of products to the Company’s distributors.”