On September 2, 2026, Brown-Forman Corporation reported its financial results for the first quarter of fiscal 2027, which ended July 31, 2026. The company reported net sales of $911 million, a decrease of 1% compared to the same prior-year period. On an organic basis, net sales were also down 1%. Reported operating income decreased 3% to $252 million, while diluted earnings per share increased 6% to $0.38.
The decline in net sales was primarily driven by the end of the Korbel relationship, as well as decreases in used barrel sales and the tequila portfolio. These declines were partially offset by the growth of the Ready-to-Drink portfolio, led by New Mix. Geographically, net sales declined in Developed International markets and the United States, but increased in Emerging markets.
Gross margin expanded by 40 basis points to 60.2% due to lower costs, partially offset by the negative effect of foreign exchange. Cash flows from operations grew by $13 million to $173 million, and free cash flow increased by $32 million to $161 million.
On July 23, 2026, the Brown-Forman Board of Directors declared a regular quarterly cash dividend of $0.2310 per share on its Class A and Class B common stock. The dividend is payable on October 1, 2026, to stockholders of record on September 3, 2026.
The company maintained a strong financial position with the repayment of the $343 million principal amount of its 1.20% senior notes on July 7, 2026. Brown-Forman reaffirmed its fiscal 2027 outlook, anticipating organic net sales to be approximately flat, organic operating income to decline in the 3% to 5% range, an effective tax rate of approximately 20% to 22%, and capital expenditures planned to be in the range of $60 to $70 million.
