LOUISVILLE, KY — Brown‑Forman Corporation (NYSE: BFA, BFB) reported financial results for its fourth quarter and fiscal year ended April 30, 2025. Fourth quarter reported net sales decreased 7%¹ to $894 million (-3% on an organic basis²) compared to the same prior-year period. In the quarter, reported operating income decreased 45% to $205 million (-2% on an organic basis) and diluted earnings per share decreased 45% to $0.31, largely due to the absence of the prior-year gain on sale of the Sonoma‑Cutrer wine business.

For the full year, the company’s reported net sales decreased 5% to $4.0 billion (+1% on an organic basis) compared to the same prior-year period. Reported operating income decreased 22% to $1.1 billion (+3% on an organic basis) and diluted earnings per share decreased 14% to $1.84.

“Our ability to deliver organic growth on both the top and bottom line in a year of softening consumer demand is a testament to the strength and resilience of our team,” said Lawson Whiting, Brown‑Forman’s President and Chief Executive Officer. “While our results did not meet our long-term growth aspirations, we made important progress in an exceptionally challenging macroeconomic environment. Looking ahead to fiscal 2026, we expect continued headwinds. Still, we are confident that with agility, innovation, and a clear focus on execution, we are well positioned to navigate uncertainty and unlock new opportunities for sustainable long-term growth.”

Fiscal 2025 Highlights

• The operating environment remained challenging in fiscal 2025 due to ongoing macroeconomic and geopolitical uncertainties, which the company believes negatively impacted consumer confidence and reduced discretionary spending in many of our top markets.

• Net sales declined across all geographic aggregations, largely driven by the Finlandia and Sonoma‑Cutrer divestitures.

• Gross profit declined 7% (-2% organic). Gross margin contracted 150 basis points largely driven by higher input costs, unfavorable fixed cost absorption related to lower production levels, and the negative effect of foreign exchange, partially offset by favorable price/mix.

• Operating expenses declined 10% (-6% organic).

• A series of strategic restructuring initiatives designed to position the company for future growth resulted in charges of $63 million.

• Brown‑Forman returned $420 million to stockholders through regular quarterly dividends, received $350 million in cash in exchange for its 21.4% ownership interest in The Duckhorn Portfolio Inc. (Duckhorn), and repaid $300 million in principal on maturing notes.

Fiscal 2025 Brand Results

• Net sales for Whiskey³ products were flat (+1% organic). Growth from Woodford Reserve and Jack Daniel’s Tennessee Whiskey was offset by the negative effect of foreign exchange and declines in other super-premium Jack Daniel’s expressions. These expressions include Jack Daniel’s Single Barrel and various other Jack Daniel’s special releases, which declined compared to a strong prior year partially due to a number of product launches. An estimated net increase in distributor inventories positively impacted net sales.

• Net sales for the Tequila³ portfolio declined 14% (-12% organic) impacted by challenging macroeconomic conditions in Mexico and a competitive environment in the United States. Driven by these markets, el Jimador’s net sales decreased 13% (-11% organic) led by volume declines, and Herradura’s net sales decreased 13% (-10% organic) led by volume declines and higher promotional pricing. Net sales were also impacted by the negative effect of foreign exchange.

• Net sales for the Ready-to-Drink³ (RTD) portfolio declined 6% (+5% organic). Jack Daniel’s RTD/RTP portfolio decreased 8% (+1% organic) largely driven by the Jack Daniel’s Country Cocktails business model change (JDCC)². Net sales of New Mix declined 1% (+13% organic), as double-digit volume growth was more than offset by the negative effect of foreign exchange.

• Rest of Portfolio's³ net sales declined 33% (-2% organic) driven by the Finlandia and Sonoma‑Cutrer divestitures and lower volumes of Korbel California Champagnes in the United States. The decline was partially offset by strong double-digit growth from Diplomático.

Fiscal 2025 Market Results

• Net sales in the United States decreased 7% (-2% organic) led by the divestiture of Sonoma‑Cutrer; volume declines in a challenging consumer environment, primarily Jack Daniel’s Tennessee Whiskey and Korbel California Champagnes; and the impact of JDCC. The declines were partially offset by growth of Woodford Reserve as the brand continued to gain market share and outperformed the U.S. Whiskey category. An estimated net increase in distributor inventories positively impacted net sales.

• Collectively, net sales in the Developed International³ markets declined 6% (-3% organic) led by the absence of the Finlandia brand and lower volumes in Italy (in preparation for the May 1, 2025 transition to owned distribution), South Korea, and the United Kingdom. The decline was partially offset by higher volumes of Jack Daniel’s Tennessee Whiskey in Japan, reflecting the transition to owned distribution on April 1, 2024.

• Net sales in Emerging³ markets declined 2% (+9% organic), largely driven by the negative effect of foreign exchange, the Finlandia divestiture, and declines of the Tequila portfolio in Mexico. The decline was partially offset by growth of the Jack Daniel’s family of brands in Türkiye, Brazil, and the United Arab Emirates, and higher volumes of New Mix. An estimated net increase in distributor inventories positively impacted net sales.

• The Travel Retail channel’s net sales decreased 7% (-5% organic) led by declines of other super-premium Jack Daniel’s expressions and the divestiture of Finlandia, partially offset by higher volumes of Diplomático.

Fiscal 2025 Other P&L Items

• Gross profit decreased 7% (-2% organic) primarily due to the absence of the divested brands and the negative effect of foreign exchange. Gross margin contracted 150 basis points to 58.9% largely driven by higher input costs, unfavorable fixed cost absorption related to lower production levels, and the negative effect of foreign exchange, partially offset by favorable price/mix.

• Advertising expense decreased 8% (-6% organic) driven by lower Jack Daniel’s Tennessee Whiskey and Jack Daniel’s Tennessee Apple spend, the impact of the recently divested brands, and lower Jack Daniel’s and Coca-Cola RTD spend as compared to the prior-year period launch in the United States.

• Selling, general, and administrative (SG&A) expenses decreased 10% (-5% organic) led by lower compensation and benefit-related expenses and lapping the prior-year expenses related to charitable contributions to the Brown‑Forman Foundation and Dendrifund.

• The company incurred $63 million in charges related to the restructuring program announced in January 2025. The restructuring initiatives include a 12% workforce reduction, the closure of the Louisville-based Brown‑Forman Cooperage, and an early retirement benefit offered to qualifying U.S. employees. The charges comprise $60 million presented as “restructuring and other charges” and $3 million included in cost of sales. These restructuring costs are in line with expectations and should deliver $70 to $80 million in annualized savings to invest in future growth.

• Operating income declined 22% (+3% organic) with an operating margin decrease of 600 basis points to 27.9%. The decrease was primarily due to the absence of the gains from our divested brands, the decline in gross margin, and a non-cash impairment charge in the fourth quarter related to the Gin Mare brand name, partially offset by lower operating expenses, including the favorable fair value adjustment to Gin Mare’s contingent consideration liability.

• Diluted earnings per share decreased $0.31 driven primarily by the decrease in operating income, partially offset by the pretax gain on sale of the investment in Duckhorn and the benefit of the lower effective tax rate.

Fiscal 2025 Financial Stewardship

• The company paid regular quarterly dividends totaling $420 million to stockholders. Brown‑Forman, a member of the S&P 500 Dividend Aristocrats Index, has paid regular quarterly cash dividends for 81 consecutive years and has increased the regular dividend for 41 consecutive years.

• Brown‑Forman received $350 million in cash for its 21.4% ownership interest in Duckhorn and recognized a $78 million pretax gain on its sale.

• The company maintained a strong financial position with the repayment of the $300 million principal amount of 3.50% senior notes on their maturity date of April 15, 2025.

Fiscal 2026 Outlook

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. We remain focused on building our business for the long term and navigating the current environment at pace with strategic initiatives in fiscal 2026 that we believe will unlock future growth led by the significant evolution of our U.S. distribution, the restructuring initiative, and meaningful new product innovation. Considering these factors, we expect the following in fiscal 2026:

• Organic net sales decline in the low-single digit range.

• Organic operating income decline in the low-single digit range.

• Our effective tax rate to be in the range of approximately 21% to 23%.

• Capital expenditures planned to be in the range of $125 to $135 million.

​Click here for the full financial results.

Conference Call Details

Brown‑Forman will host a conference call to discuss these results at 10:00 a.m. (ET) today. A live audio broadcast of the conference call, and the accompanying presentation slides, will be available via

Brown‑Forman’s website, brown-forman.com, through a link to “Investors/Events & Presentations.” A digital audio recording of the conference call and the presentation slides will also be posted on the website and will be available for at least 30 days following the conference call.

Brown‑Forman Corporation has been building exceptional spirits brands for more than 150 years, responsibly upholding our founding promise of “Nothing Better in the Market.” Our portfolio of premium brands includes the Jack Daniel’s Family of Brands, Woodford Reserve, Herradura, el Jimador, Korbel, New Mix, Old Forester, The Glendronach, Glenglassaugh, Benriach, Diplomático Rum, Chambord, Gin Mare, Fords Gin, Slane, and Coopers’ Craft. With a team of approximately 5,400 employees worldwide, we proudly share our passion for premium beverages in more than 170 countries. Discover more about us at brown-forman.com and stay connected through LinkedIn, Instagram, and X.

Important Information on Forward-Looking Statements:

This press release contains statements, estimates, and projections that are “forward-looking statements” as defined under U.S. federal securities laws. Words such as “aim,” “ambition,” “anticipate,” “aspire,” “believe,” “can,” “continue,” “could,” “envision,” “estimate,” “expect,” “expectation,” “intend,” “may,” “might,” “plan,” “potential,” “project,” “pursue,” “see,” “seek,” “should,” “will,” “would,” and similar words indicate forward-looking statements, which speak only as of the date we make them. Except as required by law, we do not intend to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. By their nature, forward-looking statements involve risks, uncertainties, and other factors (many beyond our control) that could cause our actual results to differ materially from those expressed in or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to:

• Our substantial dependence upon the continued growth of the Jack Daniel's family of brands

• Substantial competition from new entrants, consolidations by competitors and retailers, and other competitive activities, such as pricing actions (including price reductions, promotions, discounting, couponing, or free goods), marketing, category expansion, product introductions, or entry or expansion in our geographic markets or distribution networks

• Disruption of our distribution network or inventory fluctuations in our products by distributors, wholesalers, or retailers

• Risks from changes to the trade policies, tariffs, and import and export regulations of the United States or foreign governments and the effectiveness of our actions to mitigate the negative impact on our margins, sales, and/or distributors

• Changes in consumer preferences, consumption, or purchase patterns – particularly away from larger producers in favor of small distilleries or local producers, or away from brown spirits, our premium products, or spirits generally, and our ability to anticipate or react to them; further legalization of marijuana; bar, restaurant, travel, or other on-premise declines; shifts in demographic or health and wellness trends; or unfavorable consumer reaction to new products, line extensions, package changes, product reformulations, or other product innovation

• Route-to-consumer changes that affect the timing of our sales, temporarily disrupt the marketing or sale of our products, or result in higher fixed costs

• Production facility, aging warehouse, or supply chain disruption

• Imprecision in supply/demand forecasting

• Higher costs, lower quality, or unavailability of energy, water, raw materials, product ingredients, or labor

• Risks associated with acquisitions, dispositions, business partnerships, or investments – such as acquisition integration, termination difficulties or costs, or impairment in recorded value

• Unfavorable global or regional economic conditions and related economic slowdowns or recessions, low consumer confidence, high unemployment, weak credit or capital markets, budget deficits, burdensome government debt, austerity measures, higher interest rates, higher taxes, political instability, higher inflation, deflation, lower returns on pension assets, or lower discount rates for pension obligations

• Impact of health epidemics and pandemics, and the risk of the resulting negative economic impacts and related governmental actions

• Product recalls or other product liability claims, product tampering, contamination, or quality issues

• Negative publicity related to our company, products, brands, marketing, executive leadership, employees, Board of Directors, family stockholders, operations, business performance, or prospects

• Failure to attract or retain key executive or employee talent

• Risks associated with being a U.S.-based company with a global business, including commercial, political, and financial risks; local labor policies and conditions; compliance with local trade practices and other regulations; terrorism, kidnapping, extortion, or other types of violence; and health pandemics

• Failure to comply with anti-corruption laws, trade sanctions and restrictions, or similar laws or regulations

• Fluctuations in foreign currency exchange rates, particularly due to a stronger U.S. dollar

• Changes in laws, regulatory measures, or governmental policies, especially those affecting production, importation, marketing, labeling, pricing, distribution, sale, or consumption of our beverage alcohol products

• Tax rate changes (including excise, corporate, sales or value-added taxes, property taxes, payroll taxes, import and export duties, and tariffs) or changes in related reserves, changes in tax rules or accounting standards, and the unpredictability and suddenness with which they can occur

• Decline in the social acceptability of beverage alcohol in significant markets

• Significant additional labeling or warning requirements or limitations on availability of our beverage alcohol products

• Counterfeiting and inadequate protection of our intellectual property rights

• Significant legal disputes and proceedings, or government investigations

• Cyberbreach or failure or corruption of our key information technology systems or those of our suppliers, customers, or direct and indirect business partners, or failure to comply with personal data protection laws

• Our status as a family “controlled company” under New York Stock Exchange rules, and our dual-class share structure

For further information on these and other risks, please refer to our public filings, including the “Risk Factors” section of our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission.