uploads///STZ Sales

Can Constellation Brands’ Sales Surpass Expectations?


Oct. 1 2018, Published 8:02 a.m. ET

Fiscal 2019 first-quarter recap

Constellation Brands (STZ) generated sales of $2.05 billion in the first quarter of fiscal 2019[1. The first quarter of fiscal 2019 ended on May 31, 2018.] and exceeded analysts’ expectations by 0.2%. Sales grew 6.1% year-over-year compared to 3.4% but were lower sequentially than 8.5% growth in the fourth quarter of fiscal 2018.

Article continues below advertisement

Headwinds and tailwinds in the first quarter

Constellation Brands’ sales growth in the first quarter of 2019 was due to a rise in beer sales, driven by higher volumes of its Mexican beer portfolio. Sales growth was negatively impacted by a decline in net sales for wine and spirits due to unfavorable shipment volumes.

Expectations for second-quarter sales

Analysts expect Constellation Brands’ sales to rise 8% to $2.3 billion in the second quarter of fiscal 2019, which ended on August 31, 2018. For fiscal 2019, which ends on February 28, 2019, analysts expect sales to grow 7.4% to $8.1 billion.

The company expects the performance of its Wine and Spirits segment to improve in the second half of fiscal 2019, which includes the crucial holiday selling season. Despite a challenging first quarter for that segment, the company kept its fiscal 2019 guidance intact with segment sales growth expected at 2%–4%.

Beer sales continue to be the primary growth driver for Constellation Brands. We’ll look at that next.


More From Market Realist

  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.