Brown Forman reported an increase in sales of 1 percent but they were hit on the strengthening dollar and weak economy. The company reported sales of $784 million for the quarter down from $877 million although the company would have had an increase in sales of 1% if it weren’t for fluctuations in currency. The company reported an EPS of $.81 3rd quarter up 9 percent compared to the same quarter in the prior year. The street was expecting an EPS of $.80.
Management cut their estimates going forward with an EPS of $2.7-$2.9 compared to $3-$3.2 which would represent a decline in growth of 5% compared to an increase of 2%. Going forward management expects currency to negatively effect the quarter over quarter comparisons in the range of $.08-$.10 per share. Management is also concerned of the weak economy and consumers attitudes over the past 15 months. Distributors have also started to decrease their inventory levels, which will hurt sales going forward.