Constellation Brands warned that higher transportation and commodity costs will weigh on gross profit margins in the second half of the year, sending shares down more than 4% and marking the ninth decline in ten sessions. The margin pressure stems from logistics inflation and volatile commodity hedges, but management remains confident in its long-term outlook, citing underlying pricing power and early signs of normalized consumption. At the Barclays Annual Global Consumer Conference in Boston, CEO Nicholas Fink said the parent of Modelo and Corona is shifting from expansion to operational efficiency and cost optimization, measures expected to boost profits despite sluggish sales. The company reiterated its fiscal 2027 targets of reported EPS between $11.50 and $12.20 and comparable EPS between $11.20 and $11.90, with enterprise organic net sales seen down 1% to up 1%.
Constellation Brands Inc Class AHigher transportation and commodity costs will compress gross margins in H2.
