Brown-forman Stock Earnings Reports

Key investor takeaways: Brown-Forman returned to year-to-date organic net sales growth (+2% after adjustments) and organic operating income growth (+5% YTD), driven by strength in Woodford Reserve (organic net sales +10%) and sequential improvement in Jack Daniel's Tennessee Whiskey (+2% YTD). RTDs (Jack & Coke, New Mix) and emerging markets (collectively +8%) were material growth contributors. Management reaffirmed full‑year fiscal 2025 guidance: organic net sales growth of 2%–4% (guiding nearer the low end) and organic operating income growth of 2%–4% (guiding to the upper end). They are executing route‑to‑consumer changes (own distribution in Japan, Italy launch May 1, 2025; new California distributor Reyes Beverage Group effective May 1), and announced organizational actions — a ~12% global workforce reduction and closure of the Louisville Cooperage — expected to incur ~$60–70M of charges and deliver ~$70–80M of annualized savings (with >$30M in asset proceeds). Tariff risk (EU, Mexico, Canada) remains a significant near‑term uncertainty; management has mitigation plans and says potential tariff impacts are included in FY25 guidance. Financial highlights: reported gross margin contracted ~150 bps to 59.4% (sequential improvement), reported EPS down 4% to $1.53, Duckhorn investment sale generated $350M cash and a $78M gain, capex guidance of $180–190M, and updated effective tax rate guidance to ~20%–22%. Distributor inventories remain at the low end of normal ranges; management expects shipments and depletions to largely come back into line by year end.