Brown-Forman misses quarterly sales estimates on muted spirits demand

(Reuters) - Jack Daniel's shaper Brown-Forman missed Wall Street estimates for third-quarter income connected Wednesday, wounded by falling request for its whiskey and tequila peculiarly successful the United States.

Shares of the institution were up 7% successful aboriginal commercialized contempt the income miss.

The liquor shaper reaffirmed its fiscal 2025 nett and integrated nett income forecasts. It did not specify if it was accounting for the interaction from U.S. tariffs connected its performance.

The operating situation continues to beryllium progressively volatile owed to geopolitical uncertainties and planetary macroeconomic conditions, Brown-Forman said.

The institution has been reeling from a slowdown successful request truthful acold this year, led by the U.S., Canada and Europe which offset benefits from stronger income successful emerging markets specified arsenic Mexico and Poland.

Meanwhile, U.S. tariffs of 25% connected imports from Canada and Mexico kicked successful connected Tuesday, alongside the doubling of China tariffs to 20%.

Brown Forman has undertaken outgo cutting measures, which analysts person said is simply a effect to a much challenging situation some for the institution and the broader spirits industry.

Last month, it announced a 12% planetary workforce simplification and closed its Louisville cooperage plant, measures that volition prevention the institution betwixt $70 cardinal to $80 cardinal annually.

Net income for the 4th ended January 31 fell 3% to $1.04 cardinal from a twelvemonth ago, compared with analysts' estimation of $1.07 billion, according to information compiled by LSEG.

On an adjusted basis, the institution earned 43 cents per stock for the reported quarter, missing estimates of 46 cents.

It reaffirmed full-year nett income maturation successful the scope of 2% to 4% and integrated operating income forecast to beryllium successful the scope of 2% to 4% rise.

(Reporting by Aamir Sohail successful Bengaluru; Editing by Shailesh Kuber)