Constellation Brands (STZ) shares plunged Friday, after the maker of beer, wine, and spirits cut its outlook as consumers held back spending.

The company behind brands including Modelo beer and Kim Crawford wine reduced the lower end of its estimate for fiscal 2025 earnings per share (EPS) to between $13.40 and $13.80, versus its earlier projection of $13.60 to $13.80. It said it sees sales gaining 2% to 5% for the fiscal year, compared to its previous prediction of a 4% to 6% increase.

Chief Executive Officer (CEO) Bill Newlands said that because of “near-term uncertainty on when consumers will revert to more normalized spending, we have prudently lowered our growth outlook."

Lower Outlook Offsets Higher-than-Expected Q3 Results

The lower outlook offset strong third-quarter results, with Constellation Brands reporting EPS of $3.39 and revenue down 0.5% to $2.64 billion. Both were above estimates.

Beer sales rose 3% to $2.03 billion, as shipment volumes increased 1.6%. Sales of wine and spirits slumped 14%, dragged down by “weaker consumer demand and continued retailer inventory destocking across most price segments in the U.S. wholesale market."

Constellation Brands shares were down nearly 15% in intraday trading Friday, and have lost more than a quarter of their value in the last year.