Depressed shoppers collapsed sales of beer maker Corona. Its shares rose

US-based Constellation Brands, which makes Corona beer, has recorded a decline in sales for the summer months of 2025. The company said consumer sentiment overall remains "depressed" and Hispanics living in the U.S. have become less likely to congregate in public places because of the risk of being deported, MarketWatch reports. However, the company's shares rose more than 3% in extended trading.

Constellation Brands' revenue in the June-August quarter (the second quarter of fiscal 2026 for the company) fell to $2.48 billion - down 15% from the three summer months of 2024. Adjusted quarterly earnings per share (EPS) excluding one-time factors fell to $3.63 from $4.32 a year earlier.

Despite the decline, both indicators exceeded the consensus forecast of Wall Street analysts. It assumed an even greater drawdown: in revenue to $2.46 bln and in adjusted EPS to $3.38.

Shares of Constellation Brands rose by 3.3% in extended trading on the New York Stock Exchange on October 6. The main trades that day ended, on the contrary, with a 2.45% drop to $138.7.

Constellation Brands attributed the decline in demand to the fact that consumer sentiment in its core market, the U.S., remains "subdued," with improved business momentum in June and July followed by weaker performance in August. Hispanics account for about half of its beer business, according to the company. However, Hispanics are more likely than others to express concern about deportation risks, which have intensified since Donald Trump's return to the White House.

Following the release of the quarterly report, Constellation Brands executives said more than 80% of respondents - Hispanics and others - also expressed anxiety about "the socioeconomic environment in the U.S.," with more than 70% concerned about personal finances.

In general, the beer and spirits market is experiencing difficulties as young people and women have started to drink less, Bloomberg writes. Analysts point to a combination of factors: the growing popularity of healthy lifestyle, increased use of cannabis and the spread of weight loss drugs that can reduce cravings for alcohol, the agency explained.

The share of Americans who drink is now at its lowest level in at least 90 years, an August Gallup poll showed. In September, Barclays downgraded Constellation from "Overweight" to "Equal Weight," citing weakness in the beer segment.

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