Brown-Forman Corporation reported a net sales figure of $3.9 billion for the fiscal year ending April 30, 2026, reflecting a decrease of 1% compared to the previous year. The decline was attributed to the end of the company's relationship with Korbel Champagne Cellars and lower sales volumes of its flagship Jack Daniel's Tennessee Whiskey (JDTW). However, the company noted a positive impact from foreign exchange and higher volumes from new product launches, including Jack Daniel's Tennessee Blackberry and New Mix. Gross profit increased by 2% to $2.4 billion, resulting in a gross margin of 60.5%, up from 58.9% in the prior year.
Operating income for the fiscal year was reported at $1.0 billion, a decrease of 10% from the previous year, primarily due to higher non-cash impairment charges and increased selling, general, and administrative expenses. The company recognized impairment charges of $132 million related to its Gin Mare and Diplomático brands, reflecting a challenging macroeconomic environment. Diluted earnings per share fell to $1.53, down 17% from $1.84 in fiscal 2025.
In terms of strategic developments, Brown-Forman underwent a significant restructuring initiative, which included a workforce reduction of approximately 12% and the closure of its Louisville-based cooperage. This initiative is expected to yield long-term benefits, although it negatively impacted operating expenses in the short term. The company also transitioned its U.S. distribution network, bringing on new distributors in 14 open states and realigning its operations in 11 control states, which is anticipated to enhance commercial execution.
The company employed approximately 4,900 people globally, with a notable presence in the United States and a focus on expanding its market share in emerging markets. Brown-Forman's distribution network spans over 170 countries, with the U.S. accounting for 42% of net sales. The company continues to invest in product innovation and geographic expansion, particularly in the tequila and ready-to-drink segments, which have shown strong growth potential.
Looking ahead, Brown-Forman anticipates a challenging operating environment for fiscal 2027, with expectations of flat organic net sales and a decline in organic operating income in the range of 3% to 5%. The company plans to continue focusing on its restructuring efforts and product innovation to navigate the evolving market landscape.
About BROWN FORMAN CORP
Brown-Forman Corporation produces, markets, and sells premium beverage alcohol products globally, including iconic brands like Jack Daniel’s Tennessee Whiskey, Woodford Reserve, and Old Forester. Its portfolio spans whiskey, tequila, rum, gin, liqueurs, and ready-to-drink cocktails, serving consumers in over 170 countries. The company leverages strong brand equity, diverse distribution models, and a focus on quality, innovation, and responsible marketing to maintain leadership in the premium spirits market.
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