Constellation Brands Q1 fiscal 2027 earnings: revenue falls 3.3%
Key takeaways
- The bulk of the revenue decline came from the wine and spirits segment, where sales dropped 47% to $149.2 million, reflecting the impact of brand divestitures the company made in 2025, the company said.
- CEO Nicholas Fink said he sees room to expand the company's core brands and intends to pursue opportunities in categories adjacent to its existing product lines.
- What began as a solid quarter deteriorated as fuel costs tied to the war in Iran added fresh pressure on top of years of accumulated inflation, the company said.
Constellation Brands Q1 fiscal 2027 earnings: revenue falls 3.3% Constellation Brands Q1 fiscal 2027 earnings: revenue falls 3.3% · Quartz · Ronaldo Schemidt/AFP/Getty Images Cris Tolomia Wed, July 1, 2026 at 7:17 PM GMT+7 2 min read STZ Constellation Brands reported first-quarter fiscal 2027 results Monday showing net sales down 3.3% from a year earlier to $2.43 billion, as softening consumer demand weighed on the beverage company's top line. Adjusted earnings came in at $3.43 a share, ahead of analyst expectations of $3.19 a share, according to The Wall Street Journal.
The bulk of the revenue decline came from the wine and spirits segment, where sales dropped 47% to $149.2 million, reflecting the impact of brand divestitures the company made in 2025, the company said. Pricing gains and stronger shipment volumes pushed beer revenue up 2% to $2.28 billion. On the depletion side — a metric tracking how much distributors sell through to retailers — volumes slipped 0.3%, with weakness in Modelo Especial and Corona Extra only partly countered by gains in Pacifico, Victoria, and Modelo Chelada.
CEO Nicholas Fink said he sees room to expand the company's core brands and intends to pursue opportunities in categories adjacent to its existing product lines. "I see significant runway to continue growing our leading brands with an even greater emphasis on understanding consumer occasions and relevance—increasingly looking at our business through the lens of when, where, and why consumers are choosing our brands," he said in a statement.