Constellation Brands Inc. (STZ) Affirms Stock Buybacks as it lowers Guidance

Constellation Brands Inc. (NYSE:STZ) is one of the best FMCG stocks to invest in. On September 2, the company lowered its fiscal 2026 outlook, citing challenging macroeconomic conditions. It now expects its comparable earnings per share to range between $11.30 and $11.60, down from the previous guidance of between $12.60 and $12.90.

Additionally, the retailer expects its enterprise organic net sales to decline by between 6% and 4%. Lower volumes and operating deleveraging could cause net sales to slow significantly as the company continues to feel the impact of tariffs. It has also lowered its free cash flow guidance to between $1.3 billion and $1.4 billion from the previous guidance of between $1.5 billion and $1.6 billion.

Amid lower full-year guidance, Constellation Brands has reiterated its commitment to shareholder value. It has reaffirmed its $4 billion repurchase program, having already executed $604 million in buybacks in the first half of its fiscal 2026.

“Over the last several months, high-end beer buys rates decelerated sequentially, as both trip frequency and spends per trip declined. Notably, high-end beer buy rate declines for Hispanic consumers were more pronounced than general market declines, which has an outsized impact on our Beer Business compared to the broader beer category,” said Constellation Brands President and Chief Executive Officer Bill Newlands.

Constellation Brands Inc. (NYSE:STZ) produces and markets beer, wine, and spirits, with well-known brands like Corona, Modelo, and The Prisoner Wine Company. It is the largest importer and distributor of beer, wine, and spirits in the U.S.

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Disclosure: None. This article is originally published at Insider Monkey.