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Key Takeaways
- Brown-Forman shares lost ground in early trading Wednesday after the spirits maker reported revenue declined as sales of its Jack Daniel’s Tennessee Whiskey slumped.
- Jack Daniel’s Tennessee Whiskey volumes sank 10% year-over-year, and distributor inventories fell 8%.
- CEO Lawson Whiting said it was a “challenging year” for the spirits industry.
Brown-Forman (BF.A) shares lost over 3% in early trading Wednesday after the spirits maker reported its revenue declined as demand for its top-selling brand, Jack Daniel’s Tennessee Whiskey, continued to slide.
The company reported fiscal 2024 fourth-quarter revenue declined 8% from the year-ago quarter to $964 million, missing analysts’ estimates compiled by Visible Alpha. Diluted earnings per share (EPS) of 56 cents exceeded forecasts.
Jack Daniel’s Sales Slide
Sales of Jack Daniel’s Tennessee Whiskey dropped 6%, which Brown-Forman said reflected a decrease in estimated distributor inventories of 8%. Jack Daniel’s volumes tumbled 10%. Last quarter, sales of the signature drink were also down 6% year-over-year.
Overall whiskey drinks sales lost 3%, and tequila sales fell 4%. Sales were up 2% for ready-to-drink products. CEO Lawson Whiting called fiscal 2024 “a challenging year within the spirits industry.”
For the full year of fiscal 2025, the company said it projects both organic sales and organic operating income to gain 2% to 4%.
Brown-Forman shares were 3.8% lower at $44 as of 10:10 a.m. ET Wednesday. They’ve lost over one-fifth of their value so far this year.
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