A bottle of American whiskey Jack Daniels is available for sale at a liquor store in Chicago, Illinois on November 27, 2023.
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Jack Daniel’s stock Brown Forman It plummeted more than 18% on Thursday after the company reported quarterly revenue below analyst estimates.
“Our results did not meet our long-term growth aspirations, but we have made significant progress in a highly challenging macroeconomic environment,” CEO Lawson Whiting said in a revenue release for the company.
According to LSEG, how the company performed in the fourth quarter of 2025 compared to Wall Street’s expectations:
Earnings per share: 31 cents vs. 34 cents estimated recording: 894 million dollars vs. 967.4 million dollars
In the fourth quarter of the fourth quarter, Brown Forman reported $894 million in revenue, down 7% from the quarter a year ago. Net income was $146 million, or 31 cents per share, down 45% from $266 million the previous year, or 56 cents per share.
Net sales of Brown Forman whiskey products (Jack Daniels and Woodford Reserve) remained flat for fiscal year 2025 compared to the previous year, but the company’s tequila and ready-to-drink portfolio fell 14% and 6% respectively.
In fiscal 2026, the company expects a single-digit range reduction in both net organic sales and organic operating profit.
“We expect the operating environment for fiscal year 2026 to face headwinds due to consumer uncertainty, which will result in low visibility due to macroeconomic and geopolitical volatility, and the potential impact of currently unknown tariffs and the unbranded sales of second-hand barrels will be difficult,” the company said.
Although Brown Forman says he can’t measure the impact of potential tariffs, Bernstein analysts estimate that a 50% tariff on US whiskey sold in the EU will cause a 10% blow to Brown Forman’s revenue before interest and taxes or EBIT.
Bernstein also noted that in recession environments, distillers usually make brewers the performers, making brown Forman more vulnerable than their drink peers. Constellation Brand, Molson Coors and Anheuser-Busch.
In recent months, Canadian liquor stores have begun removing Jack Daniel’s products and other US products in response to the tariffs of President Donald Trump. In March, Brown Forman’s Whiting called the removal “worst than tariffs.”
The Trump administration also doubled tariffs on steel and aluminum imports by 50% this week, affecting brown Forman and ready-made canned products in the broader sector.
