Key Takeaways
Italian spirits group Campari (CPRI.MI) saw its shares plunge more than 11 percent after reporting first-quarter organic sales growth of 2.9 percent, a significant miss against the 5.1 percent consensus forecast.
"Despite the challenging operating backdrop, we gained market share in nearly all our key markets globally, especially on our priority brands," CEO Simon Hunt said in a statement.
The miss was driven by unexpected retailer challenges in Europe and inventory destocking on lower-priority brands in the U.S. Total revenue was €643 million, below the €651 million analysts at Visible Alpha expected. Sales of its key aperitifs rose just two percent, while the whiskey and rum category declined five percent.
The stock's sharp decline reflects investor concern over the slowdown, even as Campari reiterated its full-year guidance for organic sales growth of around three percent. The results stood in contrast to a strong day for other Italian luxury names like Brunello Cucinelli (+3.12%) and Moncler (+2.36%).
Growth was weakest in the key regions of North America, which grew 2.2 percent organically, and Europe, which expanded just 1.9 percent. The company's developing markets were a bright spot, posting 12.7 percent growth.
The weak start to the year has cast doubt on future performance, even with guidance officially maintained.
"While the European retailer issue has now been resolved, neither of the two aforementioned Q1 impacts are expected to be recovered in the balance of the year," Morgan Stanley analysts led by Tilly Eno said in a note. "Hence, we would expect the impact of the Q1 miss to flow through to FY OSG estimates bringing consensus estimates down towards Campari’s reiterated guidance for c.+3%."
The results show the pressure on consumer brands as even high-end names face challenges. The stock's decline puts it among the worst performers on the Milan exchange for the day, alongside Tenaris and other industrial names.
The guidance confirmation suggests management is confident in a recovery through the rest of 2026. Investors will watch the second-quarter results closely for signs of a turnaround in the core North American and European markets.
This article is for informational purposes only and does not constitute investment advice.
