Jack Daniel's maker Brown-Forman posts stronger sales, sees challenging demand ahead

June 4 (Reuters) - Whiskey maker ‌Brown-Forman on Thursday ​warned ​of strained consumer spending behavior for the year even as the Jack Daniel's maker reported better-than-expected quarterly sales on ‌the back of steady demand for premium spirits.

Shares of the ⁠Kentucky-based company rose 3% in morning trading after the company also forecast organic sales ‌for fiscal 2027 to be ‌flat, in line with fiscal 2026.

Brown-Forman's results, its first since rejecting Sazerac's $15-billion approach and ending separate merger talks with Pernod Ricard, shift ​investor focus back to the company's underlying performance amid a tough demand environment for spirits.

Shares of the company, which also makes Tequila ⁠Herradura, were trading at $25.50, still below the intraday high of $28.46 in March when merger talks ​with Pernod first emerged.

The company is executing a restructuring plan it announced in 2025, which includes cost-control measures such ​as job cuts, at a time when ‌spirits makers are battling a multi-year sales slump due to slowing demand and tariff pressures.

"We anticipate the operating ⁠environment for fiscal 2027 to remain challenging, as macroeconomic pressures and geopolitical instability continue to negatively impact consumer behavior and beverage alcohol consumption, particularly within developed ⁠markets," the company said in a statement, adding that it continues to expect "a ​challenging cost cycle in the year."

For the quarter ended April 30, the company's selling, general and administrative expenses rose about 34% to $259 million, driving its profit per ‌share down 62% to 12 cents, well below analysts' estimates of 32 cents, according to data compiled by ‌LSEG.

Still the company posted a 2% rise in fourth-quarter sales to $912 million, ⁠beating the average of analysts' ‌estimates of $879.6 million, helped ​by strong demand for its premium offering, Jack Daniel’s Tennessee Blackberry whiskey.

(Reporting by Koyena Das in Bengaluru; Editing by ‌Leroy Leo)

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