Brown-Forman Corporation (NYSE:BF) (NYSE:BF) stock traded higher Thursday after the spirits maker reported fourth-quarter results that topped revenue expectations, though earnings fell short of Wall Street estimates.

The Louisville, Kentucky-based company, whose brands include Jack Daniel’s, Old Forester, Woodford Reserve, Herradura and Korbel, reported fourth-quarter net sales of $912 million, up 2% from a year earlier and ahead of analyst estimates of $883.8 million. Organic net sales also increased 2%.

Operating income fell 53% year over year to $96 million. On an organic basis, operating income was unchanged. Adjusted earnings declined to 12 cents per share from 32 cents a year earlier, missing analyst expectations of 33 cents per share.

Brown-Forman Full-Year Results

For fiscal 2026, net sales declined, primarily reflecting the termination of the Korbel Champagne Cellars relationship and the absence of transition services revenue tied to the prior-year Sonoma-Cutrer divestiture.

Growth in emerging markets and the travel retail channel was partially offset by weaker sales in the United States, while developed international markets were largely unchanged.

Gross margin expanded 160 basis points during the year, supported by the impact of acquisitions and divestitures.

Cash flow from operations rose $402 million to $1.0 billion, while free cash flow increased $462 million to $893 million.

Brown-Forman returned $827 million to shareholders during the year, including $427 million in dividends and $400 million through share repurchases.

Portfolio Performance

The company’s whiskey portfolio posted a 3% increase in reported net sales and a 1% rise in organic net sales, supported by the launch of Jack Daniel’s Tennessee Blackberry, favorable foreign exchange trends and growth in Woodford Reserve in the U.S.

Tequila portfolio net sales fell 4%, or 6% on an organic basis. Herradura sales declined 9%, while el Jimador sales fell 2%, reflecting weaker demand in the U.S. and Mexico.

Ready-to-drink portfolio sales increased 11%, or 7% organically. New Mix sales surged 41%, driven by market share gains in Mexico and expansion into the U.S. The Jack Daniel’s RTD/RTP portfolio declined 3% amid softer U.S. demand and the absence of American-made beverage alcohol products in most Canadian provinces.

Sales from the rest of the portfolio fell 31%, reflecting divestiture-related impacts, while non-branded and bulk sales declined 68% due to lower used-barrel sales.

Jack Daniel’s Tennessee BlackBerry has emerged as one of Brown-Forman’s biggest growth drivers, becoming the second-largest new spirits product by value in Nielsen-tracked markets.

Executives said the flavored whiskey is generating strong consumer engagement in the U.S. and exceeding expectations in early overseas markets.

Brown-Forman Outlook

Brown-Forman said it expects fiscal 2027 to remain challenging as macroeconomic pressures and geopolitical uncertainty continue to weigh on consumer spending and beverage alcohol demand, particularly in developed markets.

The company expects organic net sales to be approximately flat in fiscal 2027 and forecasts a 3% to 5% decline in organic operating income.

Brown-Forman said previously announced restructuring actions, changes to its U.S. distribution model and continued product innovation, including the expansion of Jack Daniel’s Tennessee Blackberry, are expected to support results during the year.

BF/B Price Action: Brown-Forman shares were up 1.41% at $25.11 at the time of publication on Thursday, according to Benzinga Pro data.

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