LOUISVILLE, Ky. (WDRB) – Louisville-based liquor giant Brown-Forman Corp. lowered its forecast for sales growth and profits on Wednesday, in part because of “unpredictability and uncertainty” surrounding the fast-spreading coronavirus that originated in China late last year.
Brown-Forman executives told Wall Street analysts that they noticed the impact of the virus in the company’s February sales in China, Italy and the “travel retail” segment that includes airport and duty-free stores and U.S. military customers.
The executives added it’s hard to tell whether the company’s tempered outlook for sales and profits accurately reflects the impact of the virus.
“None of us know if that is going to be enough (or) too much. We are learning about this daily,” Brown-Forman chief financial officer Jane Moreau said on the company’s quarterly earnings call.
Brown-Forman had projected 5% to 7% growth in its sales, adjusted for certain factors, in the company’s fiscal year ending April 30. But on Wednesday, the company lowered the outlook, projecting “low single-digit” sales growth instead.
The company now expects a “flat or modest decline” in its adjusted operating income, which had been expected to grow 2% to 4% in the fiscal year.
The company, best known for Jack Daniel’s Tennessee Whiskey, reported net sales of $899 million in the three months ended Jan. 31, a slight decline from $904 million a year earlier.
