Constellation Brands' results lift stock, but executives warn consumers remain 'depressed'

By Bill Peters

Management says higher prices and deportation fears have made its large segment of Hispanic consumers wary about gathering in public

Constellation, which owns Corona and Modelo, said beer sales fell 7% during the company's fiscal second quarter.

Shares of Constellation Brands Inc. rose after hours Monday after the beer and wine maker reported quarterly results that beat expectations and stuck with its full-year outlook, although management said higher prices and deportation fears continued to keep its large segment of Hispanic consumers from going out more frequently.

Constellation's second-quarter sales fell 15% year over year to $2.48 billion, but that was still above Wall Street's estimates for $2.46 billion. The company's adjusted earnings per share were $3.63, above estimates for $3.38. Constellation's fiscal second quarter ran through August.

Beer sales fell 7% during the company's fiscal second quarter. Wine and spirits sales fell 65%.

Constellation (STZ) said it expects adjusted earnings of $11.30 to $11.60 per share for its fiscal 2026.

Shares rose 3.3% after hours.

Citing survey data from the University of Michigan, Constellation - which sells Corona and Modelo beer in the U.S. and also owns wines like Kim Crawford - said in prepared remarks that overall consumer attitudes remained "depressed." Improvements in business trends in June and July gave way to a weaker showing in August.

Constellation has said Hispanic consumers account for roughly half of the company's beer business. Amid ongoing raids from U.S. Immigration and Customs Enforcement, Pew Research has found that Hispanic adults have worried more than others about deportation, and being targeted regardless of their legal status.

Constellation executives on Monday said that more than 80% of surveyed Hispanic and non-Hispanic shoppers continued to express worries about the "socioeconomic environment in the U.S.," while more than 70% are were specifically concerned about personal finances.

"These concerns continue to impact social occasions and shopping behaviors, with respondents placing gatherings with friends and family in public spaces, gatherings with friends and family at homes, and shopping in convenience stores or gas stations in the top three activities they are doing less of during the quarter," executives said.

Shares of Constellation are down 37.2% so far this year.

-Bill Peters

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10-06-25 2038ET