Brown-Forman, known for brands like Jack Daniel’s, has faced challenges due to weak consumer sentiment and the trade war. Sales and profits declined last year, with the impact of tariffs expected to worsen after recent announcements from President Trump. The stock has plummeted, down 63% over three years, and continues to struggle in 2025.

Factors like shifting consumer tastes and trade war tensions have hurt Brown-Forman’s revenue and profits. Despite being profitable, the company saw a 3% revenue drop and a 6% decline in net income in the third quarter of fiscal 2025. The company’s struggles continued into the fourth quarter, with revenue falling 7%.

Brown-Forman’s challenges have been exacerbated by macroeconomic and geopolitical uncertainties, leading to revenue declines across all geographies. Whiskey sales remained flat, but the overall portfolio saw decreases. The company faces ongoing headwinds that are impacting its performance in the market.

President Trump’s new tariffs on major markets, including the EU, have added to Brown-Forman’s woes. Rising prices due to tariffs could further strain the company. Brown-Forman’s own guidance predicts a decline in organic sales and operating income for fiscal 2026, indicating ongoing difficulties for the company.

Despite offering value and a decent dividend, Brown-Forman’s stock faces an uphill battle due to trade policy and consumer taste challenges. The company’s stock price has struggled, and without significant changes, it is unlikely to see improvement in the near future. Investors should consider these factors before investing in Brown-Forman.

Read more at Yahoo Finance: What Happened to Brown-Forman This Year?