Brown-Forman (NYSE:BF.B) Corporation reported a slight increase in second-quarter sales but shares fell as the firm said the growth was slower than it hoped.
In the second quarter, sales increased 1% to $1.1 billion helping the company boost operating income by 8% to $339 million and diluted earnings per share by 6% to $0.50.
The company said net sales for whiskey products declined 2% in the first half of the year with the Jack Daniel's brands’ seeing net sales decline 1% driven by lower volumes for Jack Daniel’s Tennessee Whiskey, Jack Daniel’s Tennessee Honey, and Gentleman Jack partially offset by the growth of Jack Daniel’s Tennessee Apple and Jack Daniel’s super-premium expressions led by Jack Daniel’s Sinatra, Jack Daniel’s Bonded Rye, and Jack Daniel’s Single Barrel.
With an exceptionally high comparison in the same prior-year period, Woodford Reserve’s reported net sales declined 3% and Old Forester’s reported net sales declined 5%.
Brown-Forman (NYSE:BF.B)’s president and chief executive officer Lawson Whiting said the results show the firm’s ability to deliver continued growth, even amid dynamic market conditions and very strong comparisons from the prior-year period.
“While we grew at a slower pace than anticipated, we delivered strong gross margin expansion and continued to invest strongly behind our brands,” he said.
“We continue to believe our premium portfolio and broad geographic footprint will position us for accelerated growth in the second half of the fiscal year.”