Brown-Forman beats expectations despite global drinks slowdown
The Jack Daniel’s owner Brown-Forman has delivered stronger-than-expected quarterly sales and profits, lifting its share price on Wall Street. However, the US spirits giant remains cautious about the year ahead as consumers cut spending and North American markets weaken.
Against the backdrop of depressed sales and share prices among the world’s big drinks groups, Brown-Forman, the owner of the Jack Daniel’s brand, produced figures to please investors.
It easily beat analysts’ expectations for third-quarter sales and profits on the back of firm demand for its whiskey and ready-to-drink beverages and sent its stock up 3% on Wall Street.
Sales for the three months to the end of January rose 2% to $1.06 billion compared with the same quarter in 2025. Analysts had estimated income of $998.5 million. The 58 cents profit per share was also well ahead of the predictions of 47 cents.
Nine-month performance still under pressure
The figures show an improving trend as for the first nine months of the year, net sales were 2% lower at $3.0 billion, making them flat on an organic basis, compared to the same period in 2025.
Nine month operating income was flat at $905 million, representing a 3% decline organically, while diluted earnings per share decreased 8% to $1.41.
The lower nine-month net sales figures represent something of a one-off as they were largely due to ending the Korbel Champagne Cellars relationship and the absence of the Sonoma-Cutrer transition services agreement from the preceding year.
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Company maintains cautious outlook
Although the figures were welcome, the company remains very cautious about the rest of this year and reaffirmed its expectations of organic net sales falling in the low-single digit range and a similar outcome for organic operating income.
“I am pleased that our performance remains consistent with our fiscal year expectations, even as we navigate a challenging operating environment.” President and CEO Lawson Whiting said. “Our team’s resilience, along with our strong balance sheet and healthy free cash flow, continue to be sources of strength, and allow us to reiterate our full-year guidance.”
North American weakness weighs on sales
Net sales in the US home market fell by 8% in the quarter as consumers continued to be cautious of spending and as the drift towards non-alcoholic drinks and energy beverages continued.
Meanwhile, the market for US spirits in Canada remains bleak following the boycott of American drinks in the wake of President Trump’s tariff war with Ottawa.
Innovation and emerging markets offer growth
Brown-Forman has been focusing on extra product innovation alongside cost-cutting at the same time as expanding its efforts in emerging markets to offset weakness in North America.
It reported encouraging levels of uptake for its premium whiskey flavours, such as Jack Daniel’s Blackberry, notably in Brazil and Mexico.
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