Latest news with #Brown-Forman
New York Post
2 hours ago
- Business
- New York Post
Jack Daniel's maker reveals surprising reason why Americans are drinking less whiskey
Executives from Jack Daniel's parent company, Brown-Forman Corp., warned that the business is seeing pressure from cannabis, weight-loss drugs and lackluster demand from Generation Z. Brown-Forman CEO Lawson Whiting told analysts on an earnings call that the 'same big three' is the reason that there has been lower demand for liquor. 'We've been saying that for 1.5 years now. And I know on the sell-side that the world seems to be a little bit split on the extent of the pressure that it's putting on our category. We'd be naive if we didn't say that there isn't some pressure coming from those,' Whiting told analysts. The economy is also playing a factor, with Whiting noting that consumers don't have as much dispensable income and are prioritizing vacations and lodging. They go to the grocery store, I think in some cases, spirits has fallen out of the basket a little bit. And that isn't obviously great,' Whiting said. Brown-Forman Corp. is Jack Daniel's parent company. AP However, he said that spirits are still taking market share from beer and wine. He also noted that while premiumization isn't the same as it was, 'it's been kind of stagnant a little bit,' which he said is mostly good news. 'I think the consumers – they haven't traded down necessarily,' he said. Brown-Forman CEO Lawson Whiting blamed lower whiskey demand on cannabis, weight-loss drugs and Gen Z. Brown Forman However, Brown-Forman CFO Leanne Cunningham said the company projected that the operating environment will remain volatile in fiscal 2026. 'We believe that through all of that continued kind of uncertainty that the consumer is going to remain at that sustained level that it is now,' Cunningham said.
Yahoo
13 hours ago
- Business
- Yahoo
Brown-Forman Stock Plunges as Jack Daniel's Maker Warns of Economic Challenges
Brown-Forman said it faces a challenging operating environment this year, and shares sank to a more than 11-year low. The maker of Jack Daniel's whiskey and other alcoholic beverages warned about the impact of macroeconomic volatility, soft consumer demand, tariffs, and sales of used barrels. Fiscal fourth-quarter profit and sales missed (BF.B) was the worst-performing stock in the S&P 500 Thursday after the maker of Jack Daniel's whiskey warned about a "challenging" economic outlook this year. The company that also has brands such as Woodford Reserve, Chambord, and Korbel predicted the operating environment in fiscal 2026 will have "low visibility due to macroeconomic and geopolitical volatility as we face headwinds from consumer uncertainty, the potential impact from currently unknown tariffs, and lower non-branded sales of used barrels." Brown-Forman sees both full-year organic sales and organic operating income to drop by a low-single-digit percent. CEO Lawson Whiting said Brown-Forman faced "softening consumer demand" as well as "an exceptionally challenging macroeconomic environment," and that it expects "continued headwinds." The company reported fiscal 2025 fourth-quarter earnings per share of $0.31, with revenue falling 7% year-over-year to $894 million. Both were short of Visible Alpha forecasts. Shares of Brown-Forman sank more than 15% in recent trading to their lowest level since September 2013. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21 hours ago
- Business
- Yahoo
Morning Movers: Brown-Forman plummets following fourth quarter results
Stock futures are showing minimal movement as investors await key labor market data and assess recent economic indicators. Investors are closely monitoring upcoming jobless claims and May's payroll report, which are expected to provide further insight into the labor market's health. Recent data releases have offered mixed signals, contributing to market uncertainty. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter In corporate news, Boeing has agreed to a $1.1B settlement to avoid Department of Justice prosecution related to the fatal 737 MAX crashes, allocating funds toward safety improvements and victim compensation. In the commodities market, oil futures have risen, while gold prices have surpassed $3,400 per ounce, reflecting investor caution amid economic uncertainties. Overall, the market remains cautious as it navigates through economic data releases and geopolitical developments. In pre-market trading, S&P 500 futures fell 0.06%, Nasdaq futures fell 0.10% and Dow futures fell 0.02%. Check out this morning's top movers from around Wall Street, compiled by The Fly. UP AFTER EARNINGS – Hello Group (MOMO) up 8% AstroNova (ALOT) up 2% Land's End (LE) up 5% Cracker Barrel (CBRL) up 1% MongoDB (MDB) up 19% Five Below (FIVE) up 10% DOWN AFTER EARNINGS – Brown-Forman (BF.A) down 17% Winnebago (WGO) down 11% Toro Company (TTC) down 2% Bark (BARK) down 16% PVH Corp. (PVH) down 13% Ciena (CIEN) down 2% Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on BF.A: Disclaimer & DisclosureReport an Issue Brown-Forman down 16% at $27.80 after Q4 results and FY26 guidance Brown-Forman reports Q4 EPS 31c vs. 56c last year Brown-Forman sees FY26 organic net sales down low-single digits Notable companies reporting before tomorrow's open Brown-Forman price target lowered to $53 from $57.50 at Bernstein
Time of India
a day ago
- Business
- Time of India
Jack Daniel's maker Brown-Forman sees sales fall as Trump trade conflicts weigh on spirits producers
HighlightsBrown-Forman Corporation reported a 5% decline in full-year net sales, totaling nearly $4 billion, with a staggering 45% drop in net income during the fourth quarter ending April 30. CEO Lawson Whiting noted that consumers are purchasing smaller sizes of spirits due to financial constraints, reflecting a shift in spending habits amid economic uncertainty. The company anticipates ongoing challenges in the upcoming year, including potential impacts from tariffs and sustained consumer uncertainty, leading to below historical trends in the distilled spirits market. Brown-Forman Corp. reported weaker sales Thursday as the maker of Jack Daniel's Tennessee Whiskey confronts challenging market conditions amid global trade conflicts and pinched consumer spending . The Louisville, Kentucky-based spirits giant said its full-year net sales of nearly $4 billion were down 5% from a year ago, and fell 7% in in the fourth quarter. Net income was down 15% for the full fiscal year and plunged 45% in the fourth quarter ending April 30, the company said. The quarterly drop came as Brown-Forman and other U.S. spirits producers who rely heavily on foreign sales felt the reverberations from President Donald Trump's sweeping tariff plans and consumer anxiety about the economy. Brown-Forman also offered a sobering assessment for the coming year. Having steered the company through an "extremely challenging and uncertain operating environment" in the past year, Brown-Forman CEO Lawson Whiting predicted another challenging year ahead. "Fiscal 2025 was a year unlike any other that I've seen in the past three decades," he said during a conference call with industry market analysts. Whiting pointed to industry figures showing that many consumers are purchasing smaller sizes of spirits. He called it unusual and said it reflects a consumer "who's pinched and just goes to the store with a $10 bill instead of $20 and then they get the smaller size." "The consumer and their wallet just doesn't have as much money in it," he said. "They're spending money on things like vacations and lodging, and other things like that. But then when it trickles down and they go to the grocery store, I think in some cases, spirits have fallen out of the basket a little bit." In its outlook for the next year, the company said the challenges include continued consumer uncertainty and the "potential impact from currently unknown tariffs." "We know it's highly volatile," Leanne Cunningham, the company's CFO, said while fielding a question about tariffs during the conference call. "None of us can predict what's going on." The company believes the market volatility will "create sustained levels of consumer uncertainty, which we believe will lead to another year of below historical total distilled spirits trends," she said. Trump has often announced changes and pauses to his sweeping tariff plans on his social media platform. Trump hiked nearly all of his tariffs on steel and aluminum imports to a punishing 50% on Wednesday in a move that's set to hammer businesses from automakers to home builders, and likely push up prices for consumers even further. Brown-Forman executives said Thursday that American spirits brands mostly remain off store shelves in Canada. Trump has angered Canadians with his trade war and calls to make Canada the 51st state. Spirits makers in Kentucky have expressed fears of becoming "collateral damage" by getting caught up in trade conflicts. "The uncertainty of the tariffs continues to weigh down distilleries large and small," Chris Swonger, president and CEO of the Distilled Spirits Council of the United States, said in a statement Thursday. "We are urging the Trump administration to help get the spirits sector back to fair and reciprocal trade with zero-for-zero tariffs with our major trading partners." Meanwhile, Brown-Forman's full-year results showed that net sales for its whiskey products were flat. Growth from Jack Daniel's Tennessee Whiskey and its Woodford Reserve brand was offset by the negative effect of foreign exchange and declines in other super-premium Jack Daniel's products, it said. The company will launch a new product, Jack Daniel's Tennessee Blackberry, this summer. "BlackBerry is a globally recognized, well-established flavor trend, and naturally complements the flavor of Jack Daniel's Tennessee Whiskey," Whiting said. In January, Brown-Forman announced it was reducing its global workforce by about 12% and closing its hometown barrel-making plant in Louisville. Whiting reaffirmed Thursday that those actions are expected to produce about $70 million to $80 million in annualized cost savings.
a day ago
- Business
Jack Daniel's maker Brown-Forman sees sales fall as Trump trade conflicts weigh on spirits producers
LOUISVILLE, Ky. -- Brown-Forman Corp. reported weaker sales Thursday as the maker of Jack Daniel's Tennessee Whiskey confronts challenging market conditions amid global trade conflicts and pinched consumer spending. The Louisville, Kentucky-based spirits giant said its full-year net sales of nearly $4 billion were down 5% from a year ago, and fell 7% in in the fourth quarter. Net income was down 15% for the full fiscal year and plunged 45% in the fourth quarter ending April 30, the company said. The quarterly drop came as Brown-Forman and other U.S. spirits producers who rely heavily on foreign sales felt the reverberations from President Donald Trump's sweeping tariff plans and consumer anxiety about the economy. Brown-Forman also offered a sobering assessment for the coming year. Having steered the company through an 'extremely challenging and uncertain operating environment' in the past year, Brown-Forman CEO Lawson Whiting predicted another challenging year ahead. 'Fiscal 2025 was a year unlike any other that I've seen in the past three decades,' he said during a conference call with industry market analysts. Whiting pointed to industry figures showing that many consumers are purchasing smaller sizes of spirits. He called it unusual and said it reflects a consumer 'who's pinched and just goes to the store with a $10 bill instead of $20 and then they get the smaller size.' 'The consumer and their wallet just doesn't have as much money in it," he said. "They're spending money on things like vacations and lodging, and other things like that. But then when it trickles down and they go to the grocery store, I think in some cases, spirits have fallen out of the basket a little bit.' In its outlook for the next year, the company said the challenges include continued consumer uncertainty and the 'potential impact from currently unknown tariffs.' 'We know it's highly volatile," Leanne Cunningham, the company's CFO, said while fielding a question about tariffs during the conference call. "None of us can predict what's going on." The company believes the market volatility will "create sustained levels of consumer uncertainty, which we believe will lead to another year of below historical total distilled spirits trends,' she said. Trump has often announced changes and pauses to his sweeping tariff plans on his social media platform. Trump hiked nearly all of his tariffs on steel and aluminum imports to a punishing 50% on Wednesday in a move that's set to hammer businesses from automakers to home builders, and likely push up prices for consumers even further. Brown-Forman executives said Thursday that American spirits brands mostly remain off store shelves in Canada. Trump has angered Canadians with his trade war and calls to make Canada the 51st state. Spirits makers in Kentucky have expressed fears of becoming "collateral damage' by getting caught up in trade conflicts. 'The uncertainty of the tariffs continues to weigh down distilleries large and small," Chris Swonger, president and CEO of the Distilled Spirits Council of the United States, said in a statement Thursday. "We are urging the Trump administration to help get the spirits sector back to fair and reciprocal trade with zero-for-zero tariffs with our major trading partners.' Meanwhile, Brown-Forman's full-year results showed that net sales for its whiskey products were flat. Growth from Jack Daniel's Tennessee Whiskey and its Woodford Reserve brand was offset by the negative effect of foreign exchange and declines in other super-premium Jack Daniel's products, it said. The company will launch a new product, Jack Daniel's Tennessee Blackberry, this summer. 'BlackBerry is a globally recognized, well-established flavor trend, and naturally complements the flavor of Jack Daniel's Tennessee Whiskey," Whiting said. In January, Brown-Forman announced it was reducing its global workforce by about 12% and closing its hometown barrel-making plant in Louisville. Whiting reaffirmed Thursday that those actions are expected to produce about $70 million to $80 million in annualized cost savings.
