Constellation Brands Withdraws Fiscal 2028 Outlook Amid Consumer Demand Uncertainty

Constellation Brands, the U.S. maker of Modelo and Corona, withdrew its previously issued fiscal 2028 outlook on Wednesday and reported slightly weaker demand as consumers navigate a rapidly evolving macroenvironment.

The company said it was encouraged by the momentum in the fourth quarter across its beer and wine and spirits businesses, but the larger environment indicates lingering uncertainty. Constellation Brands also previously appointed Nicholas Fink as its new CEO, effective April 13.

"We expect the operating environment to remain dynamic given the evolving socioeconomic backdrop and limited near-term visibility," the company said in a statement.

Still, the company beat Wall Street expectations for its fourth quarter and full fiscal-year results.

For the fourth quarter, the company reported earnings of $1.90 per share adjusted, compared to the $1.72 per share expected. Revenue was $1.92 billion, exceeding the $1.88 billion expected. Net income for the quarter was $224.7 million, up from a loss of $370.6 million a year prior.

The company said its beer business continues to be one of its biggest sources of growth, though its overall net sales for fiscal 2026 decreased by 3%.

"We do expect that we will return to growth and that the headwinds that we're facing today are more cyclical in nature than they are structural," CFO Garth Hankinson said on a call with analysts on Thursday.

For fiscal 2027, the company said it expects adjusted EPS of between $11.20 and $11.90 compared with estimates of $12.36 per share. Constellation Brands said that spending behavior across alcohol categories became more "deliberate" because of broader economic uncertainty, with overall demand across its categories remaining "subdued" for most of the year.

"Things have been very volatile in terms of what the consumer reaction has been and our continuing research suggests that the consumer is still cautious," CEO Bill Newlands said on the Thursday call.