Latest news with #JackDaniels
Yahoo
2 days ago
- Business
- Yahoo
Jim Cramer Notes Brown-Forman (BF-B) 'Reported a Truly Terrible Quarter'
We recently published a list of . In this article, we are going to take a look at where Brown-Forman Corporation (NYSE:BF-B) stands against other stocks that Jim Cramer discusses. Calling Brown-Forman Corporation (NYSE:BF-B) the 'worst one', Cramer commented: 'But the worst one, Brown-Forman, the maker of Jack Daniel's, which reported a truly terrible quarter. Although if you read the press release propaganda, you might have thought everything's fabulous. Of course, when you look at the stock, which plummeted nearly 18% today, you'll notice that it finished even worse than Tesla stock, which is saying something given the war of words between Elon Musk and President Trump, one of the worst spitball competitions I have ever seen. Brown-Forman (NYSE:BF-B) produces, markets, and sells a variety of alcoholic drinks, including spirits, wines, and ready-to-drink options. The company also provides contract bottling and sells whiskey and wine in bulk. Overall, BF-B ranks 14th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of BF-B as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
New York Times
2 days ago
- Automotive
- New York Times
Dale Earnhardt Jr. Isn't Done Thinking About His Dad's Legacy
The interviews and footage that remain of Dale Earnhardt, the Hall of Fame NASCAR driver, paint a picture of an audacious, swaggering man who could charm and infuriate in the same moment. He was a superstar who reveled in villainy. But it is an image of him away from the track that captivates Dale Earnhardt Jr. It shows his father, most likely after a hunt, with his hands wrapped around a stag's horns. The animal's face rests against his dark jeans. He squints into the sunlight, wearing a Wrangler trucker hat. A T-shirt bearing the label of Jack Daniel's, the whiskey brand, peeks out from beneath a flannel shirt. This photo, Mr. Earnhardt said, was quintessentially his dad. The racetrack was where Dale Earnhardt won stock-car championships and millions of fans. It was also where he suffered injuries that killed him in 2001, when he crashed on the last lap of the Daytona 500. Away from the track he was ruggedly masculine, an outdoorsman. He was also often absent from the lives of his three oldest children. The photo is fixed to a door in a saloon that the younger Mr. Earnhardt built on his property in Mooresville, N.C., about two decades ago, when he was a wildly popular racecar driver, too. Soon that saloon became a full-fledged Old West town, designed as a place where Mr. Earnhardt could party without leaving his house and being subjected to the harsh glare that fame invites. It has a hotel, a chapel and a jail with two cells. The whole thing looks like it's right out of 'The Andy Griffith Show.' As Mr. Earnhardt grew older — he is now 50 — he stopped visiting the town so often. Then he got married and had two daughters, and the Old West town came back to life. Want all of The Times? Subscribe.
Yahoo
4 days ago
- Business
- Yahoo
Brown-Forman Corp (BF.A) Q4 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...
Reported Net Sales: Decreased 5% in fiscal 2025. Organic Net Sales Growth: Increased 1% after adjustments. Woodford Reserve Organic Net Sales Growth: 8% increase. New Mix Organic Net Sales Growth: Double-digit growth, surpassing 11 million 9-liter cases. Jack Daniel's Tennessee Whiskey Organic Net Sales Growth: Increased 1%. Diplomatico Organic Net Sales Growth: Strong double-digit growth. Gin Mare Organic Net Sales Growth: 1% increase. Operating Income: Reported decrease of 22%; Organic growth of 3%. Gross Margin: Contracted by 150 basis points to 58.9%. Operating Expenses: Lower due to a 6% decrease in organic advertising expense and a 5% decrease in organic SG&A investment. Diluted Earnings Per Share: Decreased 14% to $1.84. Annualized Savings from Strategic Initiatives: Approximately $70 million to $80 million. Cash Received from Duckhorn Sale: $350 million. Dividends Paid: $420 million in fiscal 2025. Long-term Notes Repaid: $300 million. Fiscal 2026 Outlook for Organic Net Sales: Expected low single-digit decline. Fiscal 2026 Capital Expenditure Outlook: $125 million to $135 million. Fiscal 2026 Effective Tax Rate: Expected to be 21% to 23%. Warning! GuruFocus has detected 5 Warning Signs with BF.A. Release Date: June 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Woodford Reserve was the largest driver of organic net sales growth, with an 8% increase driven by higher volume and positive price mix. New Mix achieved double-digit organic net sales growth, surpassing 11 million 9-liter cases and gaining market share in Mexico. Jack Daniel's Tennessee Whiskey increased organic net sales by 1%, supported by new media campaigns and sponsorships. Diplomatico delivered strong double-digit organic net sales growth, particularly in France and Germany. Brown-Forman's emerging international markets collectively delivered a 9% organic net sales increase, led by Turkey and Brazil. Reported net sales decreased by 5% in fiscal 2025, with organic net sales growing only 1% after adjustments. Organic net sales in the travel retail channel declined by 5% due to challenging macroeconomic conditions in Asia. Developed international markets saw a 3% decline in organic net sales, with notable declines in Italy, South Korea, and the United Kingdom. Organic net sales for El Jimador and Herradura tequilas declined double-digits due to a competitive environment in the US and economic challenges in Mexico. Brown-Forman incurred $63 million in charges related to workforce reduction and Cooperage closing, impacting financial results. Q: Can you explain the discrepancy between the consumer environment for Brown-Forman and other consumer categories like lodging and leisure, which seem to be performing better? A: Lawson Whiting, President and CEO, explained that while some consumer categories are performing well, others are experiencing weaker demand. He noted that the spirits industry faces unique pressures, such as competition from cannabis and changing consumer preferences, which may not affect other sectors as much. Despite these challenges, spirits continue to gain market share from beer and wine, and premiumization remains a positive trend. Q: What assumptions are included in the fiscal 2026 guidance regarding distributor inventories and consumer demand? A: Leanne Cunningham, CFO, stated that the guidance assumes a continuation of current consumer behavior and trade inventory levels, with no significant changes expected. The guidance also factors in potential disruptions from distributor transitions in the U.S. and a significant reduction in used barrel sales, which are expected to be more than half of fiscal 2025 levels. Q: How does the fiscal 2026 guidance align with the company's long-term growth algorithm, and has there been any change in the growth outlook? A: Lawson Whiting emphasized that the long-term growth algorithm remains unchanged, with expectations for mid-single-digit growth in the U.S. and higher growth in international markets. However, current market conditions, particularly in the U.S. and Europe, are challenging, and the company is focused on strategic initiatives to drive future growth. Q: What is Brown-Forman's strategy regarding pricing in the current environment of slowing demand and increased supply in the U.S. whiskey market? A: Lawson Whiting stated that the company aims for low single-digit price increases regularly. Despite concerns about industry supply, the pricing environment has remained rational, with no significant promotional activity or price reductions observed in the market. Q: How is Brown-Forman addressing potential anti-American sentiment in international markets, and what is the company's approach to advertising and promotion (A&P) spending? A: Lawson Whiting noted that historically, anti-American sentiment has not significantly impacted the Jack Daniel's brand. The company is seeing improvements in brand health measures following recent changes in consumer engagement strategies. Leanne Cunningham added that A&P spending is aligned with depletion-based growth expectations, and the company believes its current investment levels are adequate. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Associated Press
5 days ago
- Business
- Associated Press
Jack Daniel's maker Brown-Forman sees sales fall as Trump trade conflicts weigh on spirits producers
LOUISVILLE, Ky. (AP) — 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.
Wall Street Journal
5 days ago
- Business
- Wall Street Journal
Heard on the Street Recap: The Breakup
What Happened in Markets Today Tesla stock fell as Musk and Trump feuded. A war of words between Elon Musk and President Trump escalated over the course of the day Thursday. Trump threatened on social media to cut off federal funding for Musk's businesses, which include Tesla and SpaceX. 'The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon's Governmental Subsidies and Contracts,' he wrote. Tesla ended the day down 14%. Liquor-maker Brown-Forman plummeted. The maker of Jack Daniels and Woodford Reserve said it expects organic sales to decline this fiscal year as demand slows amid shifting tariffs and uncertainty about the economy. 'It's the consumer,' said Chief Executive Lawson Whiting. 'Their wallet just doesn't have as much money in it.' Brown-Forman shares fell 18%.
