Constellation Brands, Inc. (STZ) is a top name in the beverage alcohol sector, based in Victor, New York. The company’s core offerings span three major categories: beer, wine, and spirits. Its beer lineup features well-known imports like Modelo, Corona, and Pacifico. In the wine segment, it owns premium labels such as Meiomi, Kim Crawford, and Robert Mondavi.
The spirits portfolio includes names like SVEDKA Vodka and High West Whiskey. With operations mainly across the U.S., Canada, and Mexico, Constellation focuses on innovation, premiumization, and sustainability, positioning itself as a significant global competitor in the evolving alcoholic beverage market. The company has a market capitalization of $29.55 billion.
But despite its reach, the company’s price performance paints a grim picture. The beverage stock has declined by 33.2% over the past 52 weeks, while it is down 25.9% year-to-date (YTD). It has broadly underperformed the S&P 500 Index ($SPX), which has gained 14.3% and 9.5% over the same periods, respectively.
The overall consumer staples sector has also been performing better than Constellation Brands’ stock. The Consumer Staples Select Sector SPDR Fund (XLP) has declined marginally over the past 52 weeks and has gained 3.1% YTD.
The stock’s underperformance this year can be attributed to weak consumer demand, concerns over tariffs, and overall economic uncertainties. And that weakness was reflected in Constellation Brands’ first-quarter results for fiscal 2026 (the quarter that ended on May 31), reported on Jul. 1. The company’s net sales declined by 5.5% year-over-year (YOY) to $2.52 billion, falling short of the Wall Street analysts’ expected figure of $2.57 billion.
Its adjusted EPS dropped by 9.8% from its year-ago value to $3.22, also missing the analyst estimate of $3.34. Despite this, Constellation Brands’ stock gained 4.5% intraday on Jul. 2. That’s because the company still forecasts growth in its fiscal year 2026 outlook. It is now expected to report either a decline of 2% or an increase of up to 1% organically. Its beer business is forecasted to report flat to 3% growth in net sales.
