Campari Says U.S. Spirits Weakness Is Continuing for Longer Than Expected

By Adria Calatayud

Aperol maker Davide Campari-Milano said some of the weakness experienced in the U.S. spirits industry in the first half continued into the third quarter, with woes lasting for longer than expected.

The Italian aperitifs maker made the comments in a call with investors on Friday, and later clarified that it referred to industry-wide trends and not to the company specifically.

Shares in Campari fell 5.6% on Friday to 7.80 euros ($8.64), sending the stock to levels last seen in 2020.

Campari's Chief Executive Matteo Fantacchiotti said in an earnings call in late July that the U.S. market was soft in the first half of the year and that the industry expected some improvement in the second half due to a combination of interest-rate cuts, the election, and a possible resumption of consumer confidence and discretionary spending.

In the first half, Campari's net sales in the U.S.--which accounted for 27.8% of the group's total--grew 6.7%, and 3.5% on an organic basis.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

September 16, 2024 01:50 ET (05:50 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.