Shares of Jack Daniel’s-maker Brown-Forman plunged more than 18% on Thursday after the company reported quarterly earnings that came in below analyst estimates, weighed down by the impact of tariffs and weak discretionary spending on alcohol.
Net income of $146 million, or 31 cents per share, was down 45% from $266 million, or 56 cents per share, a year earlier.
For fiscal year 2026, the company expects declines in the single-digit range in both organic net sales and organic operating income.
Bernstein also noted that in a recessionary environment, distillers typically underperform brewers, which makes Brown-Forman more vulnerable than beverage peers like Constellation Brands , Molson Coors and Anheuser-Busch .
In recent months, Canadian liquor stores began removing Jack Daniel’s products and other U.S. products in response to President Donald Trump’s tariffs.
The impact of tariffs and weak discretionary spending on alcohol caused shares of Brown-Forman, the company that makes Jack Daniel’s, to fall more than 18 percent on Thursday after the company’s quarterly earnings fell short of analyst expectations.
CEO Lawson Whiting stated in the company’s earnings release, “We made important progress in an exceptionally challenging macroeconomic environment, even though our results did not meet our long-term growth aspirations.”.
Here is LSEG’s analysis of the company’s fiscal fourth quarter 2025 performance in relation to Wall Street expectations.
31 cents per share in earnings compared to… The estimated cost is 34 cents.
$894 million in revenue compared to… An estimated $967.4 million.
Brown-Forman reported $894 million in sales for the fiscal fourth quarter, a 7% decrease from the same period the previous year. Compared to $266 million, or 56 cents per share, a year earlier, net income of $146 million, or 31 cents per share, represented a 45 percent decrease.
In fiscal year 2025, Brown-Forman’s tequila and ready-to-drink portfolios saw declines of 14 percent and 6 percent, respectively, while net sales for its whiskey products, Woodford Reserve and Jack Daniel’s, remained unchanged from the previous year.
The company anticipates single-digit declines in organic net sales and organic operating income for the fiscal year 2026.
“We anticipate the operating environment for fiscal 2026 will be challenging, with 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,” the company stated.
According to Bernstein analysts, a 50 percent tariff on U.S. goods would have an impact, although Brown-Forman claims it cannot quantify the impact. A. EBIT, or earnings before interest and taxes, would drop by 10% for Brown-Forman if whiskey were sold in the EU.
Additionally, according to Bernstein, distillers usually perform worse than brewers during recessions, making Brown-Forman more susceptible than its beverage peers, such as Constellation Brands, Molson Coors, and Anheuser-Busch.
Canadian liquor stores have started to stop carrying Jack Daniel’s and other U.S. S. . products in reaction to the tariffs imposed by President Donald Trump himself. Whiting of Brown-Forman referred to the removals as “worse than a tariff” in March. “..”.
