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Jack Daniel's Maker Brown-Forman Struggles Through Tough Spirits Market

Benzinga · 2d ago

Brown-Forman Inc (NYSE:BF) stock fell Thursday after the spirits maker posted softer quarterly earnings and a decline in sales.

The Louisville-based company manufactures a wide lineup of internationally known brands, including Jack Daniel’s, Old Forester, Woodford Reserve, GlenDronach, BenRiach, Glenglassaugh, Herradura, Korbel, and Chambord.

Even as profits and revenue slipped, the company said trends were broadly in line with expectations, and it reaffirmed its full-year outlook.

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The company reported second-quarter earnings per share of 47 cents, missing the analyst consensus estimate of 48 cents.

Quarterly sales totaled $1.036 billion, down 5% year over year.

Metrics

Lawson Whiting, Brown-Forman’s President and Chief Executive Officer, shared, “Our second quarter results reflect a continuation of the themes we saw in the first quarter, and the first half of the year unfolded largely as we expected.”

Operating income fell 10% to $305 million. Operating margin contracted to 29.4% from 31.1% a year ago.

Gross profit in the quarter under review fell 5% to $615 million. Gross margin expanded to 59.3% from 59.1%.

The company exited the quarter with cash and equivalents of $319 million, down from $444 million as of April 30.

Long-term debt reduced to $2.072 billion from $2.421 billion.

First-Half Brand Performance

In the first half of fiscal 2026, net sales for whiskey products were flat on both a reported and organic basis.

The launch of Jack Daniel’s Tennessee Blackberry and stronger Woodford Reserve sales, aided by U.S. distributor inventories and transitions, were offset by lower volumes of Jack Daniel’s Tennessee Whiskey and Jack Daniel’s Tennessee Honey.

Net sales for the tequila portfolio declined 3% on both a reported and organic basis.

Herradura’s net sales fell 11%, reflecting lower U.S. volumes in a highly competitive category, while el Jimador’s net sales increased 1% (2% organic) on higher volumes in Colombia and an estimated net inventory build at U.S. distributors.

“While the operating environment continues to be challenging, our team remains resilient and focused on executing our plans. Based on this performance and our visibility into the remainder of the year, we are pleased to reaffirm our fiscal year guidance,” Whiting added.

BF/B Price Action: Brown-Forman Inc Class B Common Stock shares were down 0.56% at $29.92 at the time of publication on Thursday, according to Benzinga Pro data.

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