Modelo Dad or mum Constellation Manufacturers Trims Gross sales Outlook, Citing Tariff Issues

Constellation Manufacturers (STZ) trimmed its gross sales outlook and introduced plans to promote a few of its lower-cost wine manufacturers.

For fiscal 2026, the alcoholic drinks maker projected adjusted earnings per share (EPS) of $12.60 to $12.90, under the consensus from analysts surveyed by Seen Alpha. The corporate additionally slashed its enterprise web gross sales projection to a decline of two% to an increase of 1%. Beforehand, it had projected a rise of two% to 4%. It additionally trimmed its fiscal 2027 to 2028 forecasts.

These lowered projections, Constellation stated, displays “the anticipated influence” of the reciprocal tariffs introduced on April 2 in addition to these towards Canada on March 4.

These adjustments to its outlook got here as Constellation posted fourth-quarter adjusted EPS of $2.63 on web gross sales of $2.16 billion, forward of analysts’ estimates.

The corporate additionally stated that as a part of a multi-year restructuring, it is usually promoting a few of its lower-cost wine manufacturers. It’s preserving these manufacturers “predominantly priced $15 and above” equivalent to Robert Mondavi Vineyard and Kim Crawford.

Constellation shares had been little modified in current buying and selling. They’ve misplaced near a 3rd of their worth up to now 12 months.

UPDATE—April 10, 2025: This text has been up to date because it was first revealed to replicate newer share value values.