Constellation Brands Scraps 2028 Outlook Amid Weakening Consumer Demand

Constellation Brands, the U.S. producer of Modelo and Corona, has withdrawn its fiscal 2028 financial outlook, signaling caution as consumers adjust their spending habits in a volatile economic climate. The company reported that demand across its beer, wine, and spirits categories has remained subdued for much of the year. Management noted that consumer behavior has become more deliberate, reflecting broader socioeconomic pressures that have limited near-term visibility. While the company expressed encouragement regarding momentum in the fourth quarter, the overarching environment remains dynamic and unpredictable. Financially, the company reported a net income of $224.7 million for the fourth quarter, a significant recovery from the $370.6 million loss recorded in the prior year. However, the broader trend showed a 3% decrease in overall net sales for fiscal 2026. Looking ahead to fiscal 2027, Constellation Brands expects adjusted earnings per share (EPS) to fall between $11.20 and $11.90, which falls short of the $12.36 per share estimated by analysts. The announcement coincides with a leadership transition, as Nicholas Fink is scheduled to assume the role of CEO on April 13. While the company managed to beat Wall Street expectations for its fourth quarter and full fiscal-year results, shares traded slightly lower in extended trading following the guidance withdrawal.