Revenue declined 7% year-on-year to $894 million in the fourth quarter, missing the analysts’ consensus estimate of $965.3 million, as per Finchat data.

Shares of premium spirits maker Brown-Forman Corporation (BF.A, BF.B) declined over 16% on Thursday after the company reported a downbeat fourth quarter and said that the operating environment will be challenging in fiscal 2026.

Despite a modest 1% organic sales growth for the year, the company faced significant declines in net sales and earnings per share (EPS) during the fourth quarter. 

Revenue declined 7% year-on-year (YoY) to $894 million, missing the analysts’ consensus estimate of $965.3 million, as per Finchat data.

Earnings per share (EPS) of $0.31 marked a 45% slump YoY, and missed the consensus estimate of $0.34.

For the full year, the company’s reported net sales decreased 5% to $4.0 billion, with a 22% decline in operating income to $1.1 billion.

The gross profit decreased 10% YoY to $513 million, and the margin compressed by 160 basis points to 57.4%.

The company incurred restructuring and other charges of $27 million in the quarter. Operating income saw a 45% decline to $205 million, with the operating margin contracting by 1,600 basis points to 22.9%.

Brown-Forman held $444 million in cash and equivalents as of the end of April. The operating cash flow for the fiscal year totaled $598 million.

For fiscal 2026, Brown-Forman anticipates low-single-digit declines in both organic net sales and operating income due to ongoing macroeconomic challenges, including potential new tariffs and softening consumer demand.

“We anticipate the operating environment for fiscal 2026 will be challenging, with low visibility due to macroeconomic and geopolitical volatility as we face headwinds from consumer uncertainty, the potential impact from currently unknown tariffs, and lower non-branded sales of used barrels,” the company said. 

CEO Lawson Whiting emphasized the company's focus on long-term growth, citing strategic initiatives such as restructuring efforts and new product innovations to navigate the current environment.

On Stocktwits, retail sentiment around Brown-Forman changed to ‘extremely bullish’ from ‘neutral’ the previous day.

BF.B's Sentiment Meter and Message Volume as of 02:20 p.m. ET on June 5, 2025 | Source: Stocktwits

A Stocktwits user suggested buying the dip.

Brown-Forman stock has lost over 27% in 2025 and over 36% in the last 12 months.

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