Brown-Forman Corp., the maker of Jack Daniel’s whiskey, reported third quarter revenues of $96.1 million, up 19% from $80.5 million one year ago. The company also said it is exploring the possible sales of its Lenox china and giftware subsidiary.
The company reported solid growth for its Jack Daniel’s, Southern Comfort and Finlandia Vodka brands and said that earnings growth was partially offset by higher advertising in its beverages segment. Ad expenses were up 20%, a reflection of the company’s desire to invest heavily in the current robust global spirits environment and the impact of a weaker U.S. dollar on the company’s costs. The quarter ended Jan. 31.
Goldman Sachs & Co. has been retained to assist in exploring the options for Lenox, which had disappointing performance at retail over the holidays.
Lenox “is consistently profitable and generates significant cash flow from a portfolio of extraordinary products, many of which have been long-time leaders in their respective categories,” said Owsley Brown II, the company’s chairman and CEO, in a statement. “After careful thought, however, we have determined that the best path to creating value for our shareholders is to focus even more sharply on growing our core beverage business.”
The company said it expects only moderate growth the rest of the fiscal year.
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