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Brown-Forman forecast a decline in annual revenue and profit on Thursday, as the Jack Daniel’s maker navigates soft consumer spending amid tariff-related uncertainties, sending its shares

plunging about 18%. Worries of a possible recession and product price increases brought on by international trade wars have dented consumer sentiment in the US and pushed people to cut back

on discretionary products such as high-end alcohol. “We anticipate the operating environment for fiscal 2026 will be challenging, with low visibility due to macroeconomic and geopolitical

volatility as we face headwinds from consumer uncertainty, the potential impact from currently unknown tariffs,” the company said. The US has doubled the tariffs on steel and aluminum

imports to 50%, posing a risk for the company that also makes canned ready-to-drink products. The liquor maker had said in March Canadian provinces taking American liquor off store shelves

was “worse than a tariff,” but noted that it can withstand the impact as Canada accounted for only 1% of its total sales. EXPLORE MORE Brown-Forman, however, benefited from the European

Union dropping its planned retaliatory tariff on American whiskey. The owner of Old Forester and Woodford Reserve brands expects both organic net sales and organic operating income for

fiscal 2026 to decline in the low single-digit range. It reported an increase of 1% and 3% in organic net sales and organic operating income, respectively, during fiscal 2025. The company’s

results were indicative of pressure on consumers and their stretched discretionary budgets rather than a decline in premium American spirits, Consumer Edge analyst Connor Rattigan said.

Brown-Forman’s sales during the quarter ended April 30 fell 7% to $894 million, compared with analysts’ average estimate of $967.4 million, according to data compiled by LSEG. Its earnings

per share of 31 cents also missed the estimate of 34 cents.