The company's net sales were flat year over year in the third quarter ended Nov. 30, 2024, which incorporates a 14% decline in the Wine&Spirits segment that it offset with a 3% improvement in its faster-growing and larger beer segment. Despite Constellation's flat net sales, it still increased its consolidated sales by 3% year over year on a year-to-date basis, though this was nonetheless weaker than we expected. We had previously forecast the company would increase its sales by 3%-4% for fiscal year 2025. We now expect Constellation will expand its sales by closer to the 2%-3% range in fiscal year 2025. In addition to the declines in the company's smaller Wine&Spirits segment, particularly among its
