Constellations Brands has reported net sales of $635.3m for the first quarter (Q1) of fiscal 2013, down 1%, compared to the $634.8m recorded in the first quarter of fiscal 2012.

The decrease in the net sales of wine and spirits division was primarily due to higher promotional costs and decrease in volume, which was favored by product mix.

Net income slipped to $72m, compared with $74.5m in the Q1 2012.

Reported operating income was $106m against $110m in the prior year period.

The decrease in consolidated comparable basis operating income was driven primarily by promotional spending, marketing costs and contractual product cost increase.

Gross margin, a measure of profitability, was relatively flat at 39.4% in Q1 2013 from 39.5%, a year-earlier.

In first quarter of 2013, Crown generated net sales of $724m, a 7% increase, and operating income of $123m, a 3% increase, compared to its Q1 2012 values respectively.

Constellation Brands president and CEO Rob Sands said their first quarter sales and depletion trends were in-line with their expectations.

"As planned, the sell-in of new products into distributor and retail channels in last year’s fourth quarter impacted our sales and depletion trends for the first quarter," Sands added.

"However, consumer takeaway trends in SymphonyIRI channels remain robust, as our new product introductions as well as marketing and promotional investments gain traction.

"We believe our strong marketplace momentum positions us to grow in-line with the U.S. wine and spirits category in fiscal 2013."