Six years after attracting global attention at a major investment conference due to scrutiny from a U.S. hedge fund, ASX-listed Treasury Wine Estates is once again facing heightened pressure from short sellers. The renewed focus follows a surprise leadership change and deteriorating sales performance of its flagship brands.
According to data from the Australian Securities and Investments Commission (ASIC) analyzed by Capital Brief, short sellers now hold more than 70 million shares in Treasury Wine Estates—equivalent to 8.7% of the company’s outstanding stock. With a market valuation of $6.5 billion, the wine giant, known for brands such as Penfolds, Yellowglen, 19 Crimes, and Wolf Blass, now ranks as the 16th most shorted stock on the Australian Securities Exchange.
Treasury’s share price dropped below $8 on Tuesday, marking its lowest point since January 2016. The decline followed a downgrade in earnings guidance attributed to faltering sales in the challenging U.S. market. The company cited “economic uncertainty and weaker consumer demand” as key factors behind the downturn.
Compounding investor concerns, Treasury disclosed in the same statement that its U.S. distributor would exit California. However, the company did not clarify the potential impact this move might have on sales in the 2026 financial year, leaving the market with further uncertainty.
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