Modelo Parent Constellation Brands’ Stock Slides on Soft Outlook, Citing Tariff Concerns

Constellation Brands (STZ) shares slid in premarket trading Thursday, a day after the alcoholic drinks maker posted a soft outlook for the full year. The company, which imports Corona and Modelo beers from Mexico, also announced plans to sell some of its lower-cost wine brands.

For fiscal 2026, Constellation projected adjusted earnings per share (EPS) of $12.60 to $12.90, below the consensus from analysts surveyed by Visible Alpha. The company also slashed its enterprise net sales projection to a decline of 2% to a rise of 1%. Previously, it had projected an increase of 2% to 4%. It also trimmed its fiscal 2027 to 2028 forecasts.

Those lowered projections, Constellation said, reflects “the anticipated impact” of the reciprocal tariffs announced on April 2 as well as those against Canada on March 4.

Those changes to its outlook came as Constellation posted fourth-quarter adjusted EPS of $2.63 on net sales of $2.16 billion, ahead of analysts’ estimates.

The company also said that as part of a multi-year restructuring, it is also selling some of its lower-cost wine brands. It is keeping those brands “predominantly priced $15 and above” such as Robert Mondavi Winery and Kim Crawford.

Constellation shares were down close to 5% in premarket trading. They’ve lost close to a third of their value in the past 12 months through Wednesday.