Brown-Forman Sees 2% FY26 Sales Drop, Canadian Sales Plunge 60%
Brown-Forman’s net sales fell 2% and gross profit dropped 1% in the first nine months of fiscal 2026, with U.S. volumes off 8% and Canadian sales plunging nearly 60% due to product delistings. Emerging markets delivered a 16% sales increase led by Mexico and Brazil while whiskey net sales rose 2% and ready-to-drink grew 8%, despite downward pressure on barrel pricing.
1. Nine-Month Fiscal 2026 Results
Brown-Forman’s first nine months of fiscal 2026 ending April 30 saw net sales fall 2% and gross profit decline 1% as overall industry headwinds persisted.
2. Developed Market Performance
Sales in developed international markets slipped 2%, U.S. volumes fell 8%, and Canadian sales plunged nearly 60% after American-made spirits were removed from shelves across most provinces.
3. Emerging Markets and Product Trends
Emerging international markets delivered 16% net sales growth driven by double-digit gains in Mexico and Brazil; whiskey net sales rose 2% while tequila fell 6% and ready-to-drink products grew 8%.
4. Barrel Sales Pressure and Outlook
Lower demand for used barrels drove pricing downward and the company assumes American spirits will remain off Canadian shelves through year end, focusing on managing controllable factors.