Constellation Brands (STZ) Q1 2025 Earnings Report Highlights

Constellation Brands, Inc. (NYSE: STZ) shares fell more than 3% Wednesday after the company reported mixed results for the first quarter of 2025. Earnings beat expectations and revenue fell short of its target. The company updated its earnings per share guidance for the full year of 2025. Here are the key highlights from the report:

Mixed results

Net sales rose 6% year over year to $2.66 billion, but slightly beat estimates of $2.67 billion. Comparable sales growth was also 6%. Reported EPS rose to $4.78 from $0.74 a year ago. Comparable EPS rose 17% to $3.57, beating estimates of $3.46.

Segment Performance

Beer sales in the first quarter rose 8% year-on-year to $2.27 billion, helped by an almost 8% increase in shipment volume. Stock-outs increased by 6.4%, helped by strong demand across the portfolio and particularly the dynamic growth of Special model, PacificoAND Chelada Model brands. The beer business also saw volume and dollar share growth this quarter. The beer segment is expected to see sales growth of 7-9% for the full year 2025.

Wine and Spirits reported sales down 7% to $389 million, driven by a 5% drop in shipments. The decline was driven by challenging market conditions, primarily in the U.S. wholesale channel, across most price points in the wine category. Stock-outs fell 12.7%. Operating margins were hurt by lower volumes and higher costs of goods sold. The company expects sales in this segment to decline 0.5% to 0.5% for the full year.

Updated Perspective

For fiscal 2025, Constellation expects enterprise net sales to grow by 6% to 7%. The company updated its earnings per share guidance to $14.63 to $14.93 and reaffirmed its comparable earnings per share guidance of $13.50 to $13.80 for the full year.