alexeys
Brown-Forman Corporation (NYSE:BF.A) (NYSE:BF.B) reported sales fell 8% year-over-year in FQ1 to $1.0 billion. Sales were down 4% for the quarter that ended on July 31 on an organic basis.
Net sales declined across all geographic aggregations, partially due to the timing of shipments in the year-ago period related to inventory replenishment and the execution of the company’s pricing strategy. Brown-Forman (BF.A) (BF.B) said that from a brand perspective, the net sales growth of Diplomático Rum, Old Forester, and Woodford Reserve were more than offset by net sales declines led by Jack Daniel’s Tennessee Whiskey and the Finlandia divestiture. The Tequila portfolio saw a 23% sales decline during the quarter, led by lower volumes in the United States, Colombia, and Mexico. Overall, sales in the U.S. were down 5%, while developed international markets saw a decine of 9%.
Gross profit was down 13% during the quarter due largely related to the timing of input cost fluctuations coupled with high inventory levels. Operating expenses were down 12%. EPS was reported at $0.41 vs. $0.46 consensus and $0.48 a year ago.
The company’s stable of brands includes Jack Daniel’s Tennessee Whiskey, Jack Daniel’s Ready-to-Drinks, Jack Daniel’s Tennessee Honey, Jack Daniel’s Tennessee Fire, Jack Daniel’s Tennessee Apple, Gentleman Jack, Jack Daniel’s Single Barrel, Woodford Reserve, Old Forester, Coopers’ Craft, The GlenDronach, Benriach, Glenglassaugh, Slane, Herradura, el Jimador, New Mix, Korbel, Chambord, Fords Gin, Gin Mare, and Diplomático Rum.
Shares of Brown-Forman Corporation (BF.A) (BF.B) were down 1.50% in premarket trading.
