Maker Of Wild Turkey And Grand Marnier Tumbles After North American Sales Go Flat
Shares of Italian spirits group Campari, maker of Aperol, Wild Turkey, SKYY vodka, and Grand Marnier, plunged the most in European trading since May after an unexpected decline in third-quarter North American sales.
"In North America, we are still growing, just to be clear, but the overall growth trajectory for this year is being impacted by the US," CEO Simon Hunt told analysts on the company's earnings call.
Third-quarter sales rose 3.2% to 777 million euros, exceeding the Bloomberg Consensus estimate of 761.8 million euros. Strength in Europe and developing markets offset weakness elsewhere, allowing Campari to maintain its full-year organic net sales growth forecast of about 3%.
Dismal performance in its North American market sent Campari shares spiraling as much as 7.5% in Europe. Organic sales in the region fell 2%, versus expectations of a 2.7% increase, according to Jefferies analysts.
Jefferies analyst Edward Mundy said there were "some bright spots," highlighting the performance of aperitifs and the European business.
"However, the group organic print is inline and North America -2.0% misses cons +2.7%," Mundy wrote in a note to clients earlier.
RBC Capital Markets analyst James Edwardes Jones attributed the weakness in North America to the part of the portfolio outside tequila and aperitifs.
Barclays analysts noted, "The US is a tale of two portfolios, and the better half is also the more profitable one. The watch points are US softness outside aperitifs and tequila."
UBS analyst Pilar Rocafort wrote, "FY26 guidance was confirmed, although the regional mix has shifted toward stronger Europe and marginally declining North America. The top-line mix could put some pressure on the shares."
Whether gasoline above $4 a gallon is squeezing spending on premium spirits or weaker demand reflects a broader decline in alcohol consumption among younger Americans, Campari faces a challenge shared across the industry: how to reinvigorate its brands in the US.
Tyler Durden Thu, 10/29/2026 - 12:55
Continue reading...
[ H/T ZeroHedge ]
Shares of Italian spirits group Campari, maker of Aperol, Wild Turkey, SKYY vodka, and Grand Marnier, plunged the most in European trading since May after an unexpected decline in third-quarter North American sales.
"In North America, we are still growing, just to be clear, but the overall growth trajectory for this year is being impacted by the US," CEO Simon Hunt told analysts on the company's earnings call.
Third-quarter sales rose 3.2% to 777 million euros, exceeding the Bloomberg Consensus estimate of 761.8 million euros. Strength in Europe and developing markets offset weakness elsewhere, allowing Campari to maintain its full-year organic net sales growth forecast of about 3%.
Dismal performance in its North American market sent Campari shares spiraling as much as 7.5% in Europe. Organic sales in the region fell 2%, versus expectations of a 2.7% increase, according to Jefferies analysts.
Jefferies analyst Edward Mundy said there were "some bright spots," highlighting the performance of aperitifs and the European business.
"However, the group organic print is inline and North America -2.0% misses cons +2.7%," Mundy wrote in a note to clients earlier.
RBC Capital Markets analyst James Edwardes Jones attributed the weakness in North America to the part of the portfolio outside tequila and aperitifs.
Barclays analysts noted, "The US is a tale of two portfolios, and the better half is also the more profitable one. The watch points are US softness outside aperitifs and tequila."
UBS analyst Pilar Rocafort wrote, "FY26 guidance was confirmed, although the regional mix has shifted toward stronger Europe and marginally declining North America. The top-line mix could put some pressure on the shares."
Whether gasoline above $4 a gallon is squeezing spending on premium spirits or weaker demand reflects a broader decline in alcohol consumption among younger Americans, Campari faces a challenge shared across the industry: how to reinvigorate its brands in the US.
Tyler Durden Thu, 10/29/2026 - 12:55
Continue reading...
[ H/T ZeroHedge ]
