Brown-Forman shares tumble on Q1 miss, warns of challenging year ahead

Published 05/06/2025, 15:16
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Investing.com -- Brown-Forman Corp missed Wall Street estimates for first-quarter earnings and revenue and warned of a tough year ahead, sending its shares down 15%.

“While our results did not meet our long-term growth aspirations, we made important progress in an exceptionally challenging macroeconomic environment. Looking ahead to fiscal 2026, we expect continued headwinds,” said Chief Executive Officer Lawson Whiting

The maker of Jack Daniel’s whiskey reported earnings per share of $0.31 for the quarter, below analysts’ expectations of $0.34.

Revenue fell short at $894 million, compared with the consensus estimate of $968.4 million.

Brown-Forman said it expects organic net sales and organic operating income to decline in the low-single-digit range this fiscal year.

The company flagged a difficult operating environment for fiscal 2026, citing macroeconomic and geopolitical volatility, consumer uncertainty, and the possible impact of new tariffs.

It also expects lower sales from non-branded used barrels.

Co plans capital expenditures of $125 to $135 million and anticipates an effective tax rate between 21% and 23%.

Even with near-term challenges, the company pointed to long-term growth opportunities from its U.S. distribution overhaul, restructuring efforts, and new product launches.

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