Boston Beer Company (the) Stock Earnings Reports

Boston Beer reported Q1 2026 depletions down 4% and shipments down ~7% (shipments lagging depletions due to prior-year loading for innovations). Brand performance was mixed: Sun Cruiser and Twisted Tea (combined) grew, Angry Orchard and Dogfish Head have four consecutive quarters of growth, while Truly, Samuel Adams and Hard Mountain Dew showed softness. Distributor inventories improved to 4.5 weeks on hand. Gross margin expanded to 49.3% (up 100 bps) driven by procurement savings and brewery efficiencies; the company is on track for its 2026 margin savings program. Management recorded $216 million of pretax litigation expense in the quarter (a $15.52 GAAP EPS headwind) and reported non-GAAP EPS of $1.64 excluding that charge. Boston Beer narrowed its 2026 volume guidance to down low-single digits to down mid-single digits and tightened non-GAAP EPS to $8.50–$10.50 (from $8.50–$11), reflecting commodity/energy inflation (notably aluminum tariffs), the current depletion trend, and expected productivity offsets. The company plans incremental brand investment weighted to Q2–Q3 (with flexibility to reduce toward the low end of the range), expects price increases of 1–2%, full-year gross margin of 48–50%, capex of $70–$90 million, and continues active share repurchases ($31.2M repurchased YTD; ~$197M remaining authorization). Key priorities: improve market share for core brands (Twisted Tea, Truly), scale Sun Cruiser, drive margin initiatives, and execute summer marketing (World Cup, America's 250th).