Luke Sharrett / Stringer via Getty Images
Brown-Forman $BF.B +2.99% reported full-year net sales of $3.9 billion for fiscal 2026, finishing ahead of its own expectations despite a reported 1% decline from the prior year, with organic net sales flat after stripping out the effects of acquisitions, divestitures, and currency moves.
The company's fourth-quarter net sales reached $912 million, a 2% gain on both a reported and organic basis, clearing the Reuters-compiled analyst consensus of $879.6 million.
For the full year, diluted earnings per share fell 17% to $1.53 as reported operating income declined 10% to $1.0 billion. A 34% jump in selling, general, and administrative expenses to $259 million, combined with $132 million in non-cash intangible asset impairment charges, dragged fourth-quarter earnings down to $0.12 per share — a 62% drop that fell well short of the $0.32 analyst estimate tracked by Reuters.
The full-year net sales decline was driven by the end of the company's Korbel Champagne Cellars distribution relationship and the absence of a prior-year transition services agreement related to the Sonoma-Cutrer wine business, the company said. Those headwinds were partially offset by the launch of Jack Daniel's Tennessee Blackberry. Organic sales in the U.S. were flat for the year, while emerging markets grew 12% organically, led by Türkiye, the United Arab Emirates, and Brazil.
