CONSTELLATION BRANDS, INC. (STZ): restructuring charge — Constellation Brands updates FY2025 outlook, expects $1.5B-$2.5B Wine & Spirits goodwill impairment

CONSTELLATION BRANDS, INC.

Updated FY2025 comparable EPS guidance $13.60-$13.80, raised lower end; reported EPS $3.05-$7.92 includes impairment.
Non-cash goodwill impairment loss of $1.5B-$2.5B for Wine & Spirits segment in Q2 FY2025.
Beer net sales growth revised to 6%-8% (from 7%-9%); operating income growth raised to 11%-12% (from 10%-12%).
Wine & Spirits net sales decline guidance widened to (6%)-(4%) from (0.5%)-0.5%; operating income decline (18%)-(16%).
Management cites macroeconomic headwinds (unemployment) and inventory destocking; maintains ~3.0x net leverage target.

Key facts

Extracted from this filing and checked against the source text.

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

CONSTELLATION BRANDS, INC. announced a impairment with charges of approximately $1.5 billion to $2.5 billion affecting Wine and Spirits segment.

Type: impairment
Charge: approximately $1.5 billion to $2.5 billion
Affected area: Wine and Spirits segment

Exact text from the filing

Based on the aforementioned factors, on September 2, 2024, the Company concluded that it expects to incur a non-cash goodwill impairment loss of approximately $1.5 billion to $2.5 billion for the Company’s second fiscal quarter ended August 31, 2024.

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Source: SEC EDGAR

accession 0000016918-24-000172

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