Brown-Forman Reports $3.0 Billion in Net Sales, 2% Decline for Nine Months Ending January 31, 2026

Brown-Forman Corporation reported its financial results for the nine months ending January 31, 2026, revealing a net sales figure of $3.0 billion, a decrease of 2% compared to the same period last year. The decline was attributed to the negative impact of acquisitions and divestitures, particularly the absence of the Sonoma-Cutrer wine business and the end of the Korbel relationship, which affected both net sales and operating income. Despite these challenges, the company experienced growth in emerging markets and travel retail, which partially offset declines in the United States and developed international markets.

The company's gross profit for the nine-month period was $1.8 billion, reflecting a slight decrease of 1% year-over-year. However, gross margin improved to 59.9%, up from 59.4% in the prior year, driven by favorable foreign exchange effects and the impact of acquisitions and divestitures. Operating income remained stable at $905 million, with an operating margin increase to 30.0% from 29.3% in the previous year. This stability was supported by lower restructuring costs and reduced selling, general, and administrative expenses.

In terms of product performance, the Jack Daniel's family of brands, particularly Jack Daniel's Tennessee Honey and the newly launched Jack Daniel's Tennessee Blackberry, contributed positively to sales. However, the overall whiskey category saw a decline in net sales, primarily due to lower volumes in developed markets. The ready-to-drink segment, particularly New Mix, showed significant growth, with a 37% increase in net sales, driven by strong demand in Mexico.

Strategically, Brown-Forman has been undergoing a restructuring initiative aimed at reducing its structural cost base, which included a workforce reduction of approximately 12% and the closure of its Louisville-based cooperage. The company has recognized restructuring charges totaling $19 million for the nine months ended January 31, 2026. Looking ahead, Brown-Forman anticipates a challenging operating environment for the remainder of fiscal 2026, projecting organic net sales and operating income to decline in the low-single-digit range. The company plans to focus on long-term growth through strategic initiatives and product innovation while managing current market uncertainties.