Constellation Brands announced its Q2 2026 earnings, showing a 15% decrease in net sales to $2.48 billion compared to the previous year. The company attributed the decline in customer numbers mainly to economic uncertainty.
The company’s operating margin decreased by 200 basis points, primarily because of aluminum tariffs. For the period, Constellation reported a net income of $466 million.
In its looking-forward statement, Constellation Brands said: “In the second quarter of fiscal 2026 we continued to navigate a difficult socioeconomic environment that dampened consumer demand across the industry. Despite these challenges we remained focused on the controllables and executed against our strategic objectives resulting in share and distribution gains in our Beer Business, outperformance against the higher-end wine segment in our Wine & Spirits Business, and returned over $475 million to shareholders through our dividend and share repurchase programs.”
Company CEO, Bill Newlands told investors, “While we continue to navigate a challenging socioeconomic environment that has dampened consumer demand, our teams remain focused on executing against our strategic objectives, including driving distribution gains, disciplined innovation and investing behind our brands.”
On Tuesday’s call with analysts, Newlands said a monthly study of its consumers found that 80% of Hispanic and non-Hispanic consumers continue to “express concern about the socioeconomic environment.”
For the quarter, Modelo Especial remained the top-selling beer brand in dollar sales across all tracked channels within the U.S. beer category.
Shares of the company rose 3% following the earnings release.
By CEO NA Editorial Staff
