Brown-Forman Reports Profit Plunge, Cuts Outlook

Brown-Forman, the maker of Jack Daniel’s and Woodford Reserve, reported a 5% decline in full-year sales and a 7% drop in fourth-quarter sales, with quarterly profits plunging 45% amid persistent macroeconomic and geopolitical challenges, including tariff uncertainty and weak consumer demand. The company missed analyst estimates for both earnings and revenue, prompting its share price to fall over 15% to the lowest level since 2013. Brown-Forman forecasts further single-digit declines in organic net sales and operating income for fiscal 2026 as it faces continued market volatility and potential new tariffs. While the Jack Daniel’s brand saw growth in emerging markets such as Turkey and Brazil, sales fell in established markets including the UK, Italy, and South Korea. The company is introducing new products to address these challenges but analysts remain cautious about the spirits sector’s prospects compared to brewers in a recessionary climate. Brown-Forman’s outlook remains subdued given the ongoing pressures on the global spirits market.