Constellation Brands (STZ) shares fell more than 4% following warnings of margin pressure.
Executives at the Barclays Global Consumer Conference projected gross profit margin compression for the second half of the year. Logistics inflation and volatile commodity costs drive the anticipated decline.
The producer of Corona and Modelo beer is shifting focus from expansion to cost optimization. Management reiterated its financial guidance for fiscal year 2027.
The company maintains its long-term outlook based on pricing power despite a stretched consumer base.