Jack Daniels owner Brown-Forman Corp (NYSE:BF.B) reported a decline in sales and earnings, flagging a challenging consumer environment and adjustments in inventory levels in key markets.
Revenue and earnings were both lower, amid a challenging consumer environment.
Sales decreased by 8% to $951 million, from $1.03 billion, and below a market forecast pitched at $991 million.
Net income was down 16% to $195 million, or 41 cents per diluted share versus expectations of 45 cents.
The drop in sales was seen across all geographic regions, and notably the firm’s portfolio of tequila brands experienced a 23% reduction in sales.
Nevertheless, Brown-Forman retained its outlook for the full year – in which it expects organic net sales to rise between 2% and 4%.
Chief executive Lawson Whiting described the quarterly results as being in-line with company expectations.
“We are pleased to reaffirm our full-year fiscal 2025 guidance, including organic top and bottom line growth and continued reported gross margin expansion.
“We believe we have the right strategy, brands, and geographic breadth in place to effectively manage through the challenging consumer and cost environment, and are inspired every day by the talent, resilience, and creativity of our people.”
In New York, Brown-Forman shares added around 0.5% to trade at $45.44 on Thursday.