Jack Daniel’s maker Brown-Forman reports lagging whiskey sales, narrower profit

Jack Daniel’s maker Brown-Forman reports lagging whiskey sales, narrower profit


Jack Daniels Tennessee Whiskey

Getty Images

Jack Daniel’s maker Brown-Forman on Wednesday fell short of Wall Street expectations for its first quarter of fiscal 2024, plagued by lagging whiskey sales, supply challenges and a significant inventory rebuild.

Net sales for whiskey products decreased by 1%, led by the brands Woodford Reserve and Gentleman Jack. Sales for Jack Daniel’s Tennessee Whiskey were flat, the company said, due to lower distributor inventories across the United States.

“As anticipated, our first quarter growth was impacted by the difficult shipment comparison from fiscal 2023, when we rebuilt inventory impacted by prior glass supply challenges,” said CEO Lawson Whiting.

Net sales in the U.S. market decreased 8% amid volume declines.

Meanwhile the company saw growth in its ready-to-drink (RTD) and tequila categories.

Its New Mix RTD beverages delivered strong net sales growth of 52%, while its el Jimador tequila brand saw net sales grow by 27%. The company’s recent acquisition of its Gin Mare and Diplomático brands were also a bright spot.

“We continue to be confident in the strength of our people, our brands, and our business, and reaffirm our full-year fiscal 2024 guidance of 5-7% organic net sales growth and 6-8% organic operating income growth,” Whiting said in a release.

The Kentucky-based wines and spirits company reported overall quarterly revenue up 3% year over year and maintained its full-year outlook.

Here’s how Brown-Forman did for the three month period that ended July 31, compared with what analysts expected, according to consensus estimates from Refinitiv:

  • Earnings per share: 48 cents vs. 53 cents expected
  • Revenue: $1.04 billion vs. $1.05 billion expected

Net income for the period was $231 million, or 48 cents per share, down 7% from the prior-year period when Brown-Forman reported net income of $249 million, or 52 cents per share.

Marketing and operating costs soared during the quarter – outpacing revenue growth and weighing on profits.

Reported advertising expense grew 19% driven by the launch of its Jack Daniel’s & Coca-Cola RTD item, increased investment in Jack Daniel’s Tennessee Whiskey, and acquisitions.

— CNBC’s Robert Hum contributed to this report.



Source

TSA plans to let travelers keep their shoes on at airport security checkpoints
Business

TSA plans to let travelers keep their shoes on at airport security checkpoints

Traveler wait in a long security line at John Wayne Airport in Santa Ana Wednesday, May 7, 2025. Allen J. Schaben | Los Angeles Times | Getty Images The Transportation Security Administration plans to let many travelers leave their shoes on at U.S. airport checkpoints, ending a roughly 20-year-old rule, according to people familiar with […]

Read More
Boeing delivers most airplanes since late 2023 after ramping up 737 Max output
Business

Boeing delivers most airplanes since late 2023 after ramping up 737 Max output

Boeing 737 MAX airliners are pictured at the company’s factory in Renton, Washington, on Sept. 12, 2024. Stephen Brashear | AP Boeing delivered 60 airplanes last month, the most since December 2023, as the plane maker seeks to raise production of its bestselling 737 Max jets after a series of manufacturing and safety problems. The […]

Read More
Wendy’s CEO Kirk Tanner tapped to lead Hershey
Business

Wendy’s CEO Kirk Tanner tapped to lead Hershey

Kirk Tanner, then chief executive officer of North America beverages for PepsiCo Inc., speaks during the Bloomberg Power Players Summit in Miami, Florida, U.S., on Friday, Jan. 31, 2020.  Marco Bello | Bloomberg | Getty Images Wendy’s CEO Kirk Tanner has been named the new chief executive of The Hershey Company, effective August 18. Tanner […]

Read More