Brown-Forman shares tumble 8% on earnings miss, weak outlook

Published 05/06/2025, 13:34
Brown-Forman shares tumble 8% on earnings miss, weak outlook

NEW YORK - Shares of Brown-Forman Corporation (NYSE:BF.A, NYSE:BF.B) fell 8.9% on Thursday after the spirits maker reported fourth-quarter earnings and revenue that missed analyst expectations and provided a weak outlook for fiscal 2026.

The maker of Jack Daniel’s whiskey posted adjusted earnings per share of $0.31 for the quarter ended April 30, falling short of the $0.34 consensus estimate. Revenue declined 7% YoY to $894 million, well below analysts’ projections of $968.4 million.

For the full fiscal year 2025, Brown-Forman’s net sales decreased 5% to $4.0 billion, while organic sales grew 1%. The company cited ongoing macroeconomic and geopolitical uncertainties as negatively impacting consumer confidence and reducing discretionary spending in many of its top markets.

Looking ahead, Brown-Forman expects a challenging operating environment in fiscal 2026, forecasting organic net sales and operating income to decline in the low-single digit range. This outlook reflects headwinds from consumer uncertainty, potential tariff impacts, and lower non-branded sales of used barrels.

"While our results did not meet our long-term growth aspirations, we made important progress in an exceptionally challenging macroeconomic environment," said Lawson Whiting, Brown-Forman’s President and CEO.

The company’s Whiskey portfolio saw flat net sales growth, with gains in Woodford Reserve offset by declines in premium Jack Daniel’s expressions. Tequila sales fell 14% due to challenging conditions in Mexico and the U.S. market.

Brown-Forman maintained its 81-year streak of paying quarterly dividends, returning $420 million to stockholders in fiscal 2025. The company also received $350 million from selling its stake in The Duckhorn Portfolio Inc.

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