Brown-Forman's (BF.A, BF.B) fiscal fourth-quarter earnings unexpectedly declined on an annual basis, while the wine and spirits maker projected flat organic sales this year amid a weak consumer backdrop.
The company's earnings declined to $0.12 a share for the quarter ended April from $0.31 the year before. UBS Securities expected $0.31, which it said late last month was $0.02 below the Visible Alpha consensus.
Sales improved 2% to $912 million, topping Wall Street's view for $878.1 million.
Brown-Forman's class A and B shares rose 1.6% each intraday Thursday.
The parent of Jack Daniel's whiskey anticipates fiscal 2027 organic sales to be roughly flat after closing out last year unchanged too. The Street is looking for reported sales of $3.94 billion for the ongoing fiscal year.
"We anticipate the operating environment for fiscal 2027 to remain challenging, as macroeconomic pressures and geopolitical instability continue to negatively impact consumer behavior and beverage alcohol consumption, particularly within developed markets," the company said in a statement.
Brown-Forman expects its full-year organic operating income to decline by 3% to 5%, compared with a 2% decrease in fiscal 2026.
Fiscal 2026 sales for whiskey products rose 3%, buoyed by factors including the launch of Jack Daniel's Tennessee Blackberry and foreign-exchange tailwinds, Brown-Forman said. The tequila portfolio dropped 4%, while the ready-to-drink category climbed 11%.
Full-year sales in the US fell 7% despite higher prices, while developed international markets were flat. Sales in emerging markets advanced 14%.
