Constellation Beats Estimates as Beer Shipments Rise but Depletions Slip
Constellation Brands reported fiscal second-quarter net sales growth of 6% and adjusted earnings of $3.74 per share, topping expectations. Beer shipments rose 5.5%, but depletions fell 0.6% as Modelo Especial and Corona Extra remained weak. Wine and spirits sales jumped 17%, and management reaffirmed its fiscal 2027 comparable earnings outlook.
Constellation Brands' fiscal second-quarter revenue rose 6%, and adjusted profit came in at $3.74 a share, above expectations. Beer shipments climbed 5.5%, yet depletions—sales from distributors to retailers and venues—slipped 0.6%. Modelo Especial and Corona Extra weakened, while Pacifico, Victoria and Modelo Chelada grew.
Wine and spirits sales advanced 17%, with depletions up 10.2%, and the unit returned to profit. Kim Crawford and Mi CAMPO tequila contributed. After the quarter, Constellation bought SpikedAde. Management kept fiscal 2027 comparable earnings guidance at $11.20–$11.90 per share and projected organic sales between a 1% decline and 1% growth.
Constellation's mixed beer trends could matter beyond shareholders. Distributors, retailers, bars and restaurants may see uneven demand for Modelo Especial and Corona Extra, while stronger wine and spirits and smaller beer brands might create different shelf and staffing needs. Employees and suppliers tied to weaker labels could face pressure if depletions stay soft, though September improvement and reaffirmed guidance may ease some uncertainty. Investors may watch whether consumer demand, not inventory rebuilding, sustains results.