Sales slide continues for Jack Daniel’s parent: Brown-Forman reports decline
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- Brown‑Forman reported full‑year net sales declined 1% to $3.9 billion in fiscal 2026.
- Reported operating income fell 10% for the year while diluted EPS decreased 17% to $1.53.
- Whiskey net sales rose 3%, despite core Jack Daniel’s declining.
Louisville-based Brown-Forman said sales have continued to decline, although the slide has slowed.
The company, which is the parent of Jack Daniel’s Tennessee Whiskey, Woodford Reserve and Old Forester, reported fourth quarter and yearly earnings on June 4. For the quarter that ended April 30, reported net sales increased 2% to $912 million, up slightly over the same period the year before.
But reported operating income was down 53% for the quarter, and diluted earnings per share decreased 62% to $0.12.
For the full year, the company’s reported net sales decreased 1% to $3.9 billion, compared the same period the year before. Reported operating income decreased 10% and diluted earnings per share decreased 17% to $1.53.
The earnings missed analysts’ projections by $0.20, but the yearly sales beat projections by $30 million.
“We finished the fiscal year ahead of our expectations, driven by strong execution in our innovation portfolio, the early benefits of our U.S. route-to-market transformation, and strategic cost-restructuring initiatives,” said president and chief executive officer Lawson Whiting in a news release. “While we expect continued market volatility and a challenging cost cycle in the year ahead, our performance this year proves we have the right people, brands, and strategy to navigate these challenges effectively.”
Company executives will speak on the results in a conference call at 10 a.m. Thursday, which will be available online at brown-forman.com.
The company said that it expects fiscal year 2027 to “remain challenging, as macroeconomic pressures and geopolitical instability continue to negatively impact consumer behavior and beverage alcohol consumption.”
Organic net sales are expected to be flat, with organic operating income expected to decline in the 3% to 5% range.
The sales decline was offset by the launch of Jack Daniel’s Tennessee Blackberry last year, although the core Jack Daniel’s brand continued to decline. Blackberry, plus growth of Woodford Reserve in the U.S., partially offset those losses, increasing net sales of whiskey products by 3%, the company said.
Tequila sales decreased, as did much of the rest of the company’s portfolio, including non-branded and bulk, which decreased by 68%, driven by lower used barrel sales.
One bright spot: Net sales of ready-to-drink products rose 11%, with net sales of tequila-based New Mix up 41%, with market share gains in Mexico. The product also now has been launched in the U.S.
Jack Daniel’s ready-to-drink portfolio was down 3%, driven by declines in the US and the continued boycott in most of Canada of American-made spirits products.
Net sales in the U.S. were down 7% for fiscal 2026, partly because of the decline in Jack Daniel’s, despite the gains of Woodford Reserve and the introduction of Jack Daniel’s Tennessee Blackberry, as well as higher net prices across the portfolio, the company said.
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Brown-Forman recently ended potential merger talks with French spirits company Pernod Ricard and reportedly turned down a competing $15 billion buyout offer from American competitor Sazerac.
Brown-Forman also recently idled its Slane Irish Whiskey Distillery, as well as two distilleries in Scotland.
The statement did not address the recent events.
Story will be updated.
