Brown-Forman, the maker of Jack Daniel's, warned that alcohol demand in developed markets is likely to remain weak through fiscal 2027, as the company reported first-quarter net sales of $911 million, down 1% year over year and slightly below analysts' expectations of $914.9 million. Despite the sales miss, adjusted earnings of $0.38 per share beat estimates of $0.37, and management maintained its full-year outlook for flat organic sales and a 3%–5% decline in organic operating income. The company cited cautious U.S. consumers, health-conscious behavior, and growing GLP-1 use, with weakness also in Germany, France, and the UK. Canada remains a major headwind, as U.S.-made spirits are still absent from shelves in most provinces, a situation the CEO expects to continue for the rest of the fiscal year. Brown-Forman's ready-to-drink business grew 20% in the quarter, but whiskey sales were flat and tequila sales fell 12%, with Herradura and el Jimador under pressure. The planned retirement of CEO Lawson Whiting adds uncertainty as the company navigates weak demand and changing consumer preferences.
Brown-Forman CorporationWeak spirits demand in developed markets through fiscal 2027, with sales down and cautious consumers.
