The news immediately impacted the Australian stock market, and TWE's shares fell as much as 6.4%, their lowest point since August 2015, according to information provided by the company itself. Since January, the company's shares have plummeted by more than 50%.
TWE explained that the decline in wine sales in the United States, a phenomenon that particularly affects mid-priced brands, led it to use more conservative assumptions about market growth, which also reduced its future earnings expectations.
"The announcement is negative as it reflects TWE's increased pessimism about the long-term fundamentals of the market and reinforces the view that the company overpaid for the American brands it acquired in the past," the company stated.
