Brown-Forman 3Q Net Falls 5.4% On Slower Sales Growth
Brown-Forman 3Q Net Falls 5.4% On Slower Sales Growth
Mar 7, 2012 6
(WSJ) - Brown-Forman Corp.'s (BFA, BFA) fiscal third-quarter earnings fell 5.4% as the wine and liquor company's sales growth slowed more than expected.
Brown-Forman, whose brands include Jack Daniel's whiskey, Finlandia vodka and Korbel sparkling wine, has seen its sales grow over the past year as it stepped up its focus on international markets. While the U.S. business has been relatively sluggish, it has shown signs of a solid rebound, aided by the growing popularity of flavored whiskey, like its heavily promoted Jack Daniel's Tennessee Honey that was rolled out last year.
The company attributed its slower sales growth to distributors rebalancing their inventories after buying stock in the second quarter ahead of anticipated price increases in several markets. A stronger U.S. dollar also dampened the sales-growth-rate from its Hopland, Calif.-based wine business.
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