Key facts
- Brown-Forman expects fiscal 2027 organic net sales to be approximately flat.
- The company forecasts a 3% to 5% decline in fiscal 2027 organic operating income.
- Fourth-quarter sales rose 2% to $912 million, exceeding analyst estimates.
- Profit per share fell 62% to 12 cents in the fourth quarter.
- Selling, general, and administrative expenses increased 34% to $259 million in the quarter.
Whiskey maker Brown-Forman reported better-than-expected fourth-quarter sales of $912 million, a 2% increase, driven by strong demand for premium spirits like Jack Daniel's. However, the company issued a warning for fiscal year 2027, anticipating a challenging operating environment due to macroeconomic pressures and geopolitical instability impacting consumer behavior and beverage alcohol consumption, particularly in developed markets. Selling, general, and administrative expenses rose significantly by 34% to $259 million, contributing to a 62% drop in profit per share to 12 cents, which fell short of analysts' estimates. The company is also proceeding with a restructuring plan announced in 2025, which includes cost-control measures and job cuts, amidst a broader industry sales slump. Brown-Forman now expects fiscal 2027 organic net sales to be approximately flat, with organic operating income projected to decline 3% to 5%. Shares of the company rose 3% in morning trading following the results.