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Investing.com-- Shares of Treasury Wine Estates (ASX:TWE) slumped to decade-low levels on Monday after the maker of Penfolds and Wolf Blass wines scrapped its fiscal 2026 earnings guidance, citing weaker demand in China and ongoing uncertainty in its U.S. operations.
The company said preliminary data showed depletions for its high-end Penfolds brand in China remained below plan despite some improvement in September, following soft sales through the Mid-Autumn Festival period.
Treasury Wine said it no longer considered its earlier forecast for “low to mid double-digit” earnings growth in fiscal 2026 appropriate.
Sydney-listed shares of the company dropped as much as 14.2% to A$5.99 in early trade, reaching their lowest level since September 2015.
In the United States, performance at Treasury Americas was hit by a distributor transition in California, where the firm is still negotiating a settlement with its former partner, Republic National Distribution Company.
The company warned that uncertainty around inventory treatment could further weigh on shipments and net sales revenue this year.
Treasury Wine also paused its A$200 million on-market share buyback pending greater clarity on trading conditions.