Brown-Forman reported fiscal first-quarter sales of $911 million, down 1% and below the $933.02 million analyst consensus, while diluted earnings of 38 cents per share missed the 39-cent estimate. The company said weaker tequila demand, the end of its Korbel relationship and lower used barrel sales weighed on revenue, partly offset by growth in ready-to-drink products. Organic operating income rose 4% even as reported operating income fell 3%, and gross margin expanded 40 basis points to 60.2%. Ready-to-drink sales increased 20%, or 11% organically, led by New Mix, while tequila sales fell 12%, or 13% organically. Brown-Forman reaffirmed its fiscal 2027 forecast for roughly flat organic sales and a 3% to 5% decline in organic operating income, with management expressing greater confidence in the stronger end of that range. CEO Lawson E. Whiting plans to retire after nearly 30 years with the company once the board appoints a successor, with internal and external candidates under consideration.