Constellation Brands Inc (NYSE:STZ) shares moved more than 4% lower after the producer and marketer of beer, wine and spirits posted mixed results for the second quarter of fiscal 2025.
Revenue of $2.92 billion was short of the $2.95 billion expected by Wall Street analysts.
Strong beer sales, up 6% driven by a 4.6% increase in shipment volumes, were offset by weakness in wine and spirits, which decreased 12% driven by a 9.8% decrease in shipment volumes.
The company said it continues to expect a net decline between 4% and 6% and an operating income decline of 16% to 18% for its wine and spirits business for fiscal 2025.
On a positive note, adjusted earnings per share (EPS) for Q2 were up 14% year-over-year at $4.32, ahead of estimates of $4.11.
“While the current macroeconomic backdrop has weighed on demand for beverage alcohol, and for consumer packaged goods (CPG) more proudly, we continued to deliver strong performance in Q2 of fiscal 2025,” Constellation Brands CEO Bill Newlands said in a statement.
“Our company once again outperformed the dollar sales growth of the total CPG sector and our beer business remained both the #1 share gainer in its category and a top three share gainer in the broader beverage industry.”
Shares of Constellation Brands were down 4.3% at about $244 on Thursday afternoon.