UPDATE: Brown-Forman Posts Downbeat Q1 Profit

Brown-Forman (NYSE: BF-B) reported weaker-than-expected first-quarter profit. The Louisville, Kentucky-based company posted a quarterly profit of $150 million, or $0.70 per share, versus a year-ago profit of $143 million, or $0.66 per share. Its sales climbed 3% to $921 million. However, analysts were projecting a profit of $0.72 per share on revenue of $932 million. Sales of the Jack Daniel's trademark rose 4% in the quarter, while sales of Jack Daniel's Tennessee Honey jumped 35%. Underlying sales of the company's super and ultra-premium whiskey brands jumped by double-digits. Sales of El Jimador jumped 20% and sales of Herradura gained 25% in the quarter. Sales in emerging markets climbed 10% in the first quarter. Its selling, general and administrative costs increased 9% to $170 million in the quarter. Brown-Forman also reaffirmed its financial forecast for the year. Paul Varga, the company's chief executive officer, said, “As anticipated, our first quarter growth came in lower than what we achieved during fiscal 2014 and our expectations for fiscal 2015, due largely to pricing decisions that resulted in distributor and retail inventory reductions in the United States and Europe.” Brown-Forman shares fell 1.25% to close at $92.24 yesterday.