Shares of Brown-Forman (NYSE:BFB) were down about 7% Tuesday after the wine and liquors maker said its first-quarter profit slumped from a year ago, as strong global sales and high demand for Jack Daniels and other top brands could not fully offset weaker US demand for Southern Comfort.
The company posted net income of $111.4 million, or 74 cents a share, compared with $121.4 million, or 81 cents a share, in the same quarter last year.
The results fell short of average estimates by analysts polled by Thomson Reuters of 84 cents a share.
Revenue for the Louisville, KY-based company was $744.9 million, up from $737.9 million a year ago, and missing the Street’s view of $758.39 million.
Sales were driven by its top brands, including Jack Daniels, New Mix, Woodford Reserve, and Tequila Herradura, though offset by lower demand for Southern Comfort.
Revenues were higher on global sales in its Australian, German, Mexican, United Kingdom and Turkish, though impeded by weaker sales in the US.
“In what remains a sluggish environment, we performed within our expectations for our first quarter,” said Brown-Forman CEO Paul Varga. “Continuing our trends of the prior two quarters, we posted good underlying growth in sales and gross profit,” driven by strong global sales.
The CEO said it expects sales to continue increasing with trends of the prior two quarters.
During the quarter, the company repurchased $47 million shares as part of its $250 million authorization that expires on Dec. 1.
The company confirmed its full-year earnings outlook of $2.98 to $3.38 a share, though it said it remains cautious.