Top Posts
Hawley blasts FDA approval of new abortion drug,...
Federal judge to sentence Justice Brett Kavanaugh’s attempted...
GOP rising star exposes how Biden admin was...
Government shutdown enters 3rd day as Senate stalemate...
Government shutdown sparks GOP plan to penalize lawmakers...
Locksley Resources LimitedAdvances Multiple Antimony and REE Workstreams
UPS Batteries For Explosive (EX & ATEX) Environments
Locksley Advances Multiple Antimony & REE Workstreams
Update On The Mosseau Drill Program And Details...
Standard Uranium Announces Expansion of Davidson River Drill...
  • Home
  • Investing
  • Politics
  • Economy
  • World News
Money Assets Saver
Economy

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

by admin July 3, 2025
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

previous post
Qantas cyber hack could have stolen ‘significant’ amount of data from six million customers
next post
As his feud with Trump reignites, Musk’s business with the government is back in the crosshairs

You may also like

Video game maker Electronic Arts to be acquired...

October 1, 2025

Nearly 200,000 BMWs recalled over potential fire risk

October 1, 2025

YouTube to pay $24 million to settle Trump...

October 1, 2025

Charlie Javice sentenced to 7 years in prison...

October 1, 2025

Trump says U.S. will impose new tariffs on...

September 29, 2025

Former Fed chairs warn that removing Lisa Cook...

September 28, 2025

Amazon to pay $2.5 billion to settle FTC...

September 27, 2025

The charm of watching movies in theaters is...

September 26, 2025

Ben & Jerry’s co-founder resigns, claiming parent company...

September 18, 2025

LimeWire acquires Fyre Festival, asking ‘What Could Possibly...

September 17, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


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

    Recent Posts

    • Hawley blasts FDA approval of new abortion drug, cites safety and trust concerns

      October 3, 2025
    • Federal judge to sentence Justice Brett Kavanaugh’s attempted assassin

      October 3, 2025
    • GOP rising star exposes how Biden admin was targeting him through controversial surveillance program

      October 3, 2025
    • Government shutdown enters 3rd day as Senate stalemate over Obamacare subsidies drags on

      October 3, 2025
    • Government shutdown sparks GOP plan to penalize lawmakers with new salary tax

      October 3, 2025
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 moneyassetssaver.com | All Rights Reserved

    Money Assets Saver
    • Investing
    • Politics
    • Economy
    • World News