Brown-Forman Corp. reported a 1% decline in first-quarter sales to $911 million as softer alcohol demand persists in developed markets. However, the Louisville-based spirits company saw growth in ready-to-drink brands and emerging international markets. Operating income fell 3% to $252 million, though diluted earnings per share increased 6% to 38 cents.

The whiskey portfolio was essentially flat, with flagship Jack Daniel's Tennessee Whiskey holding steady. Strong growth came from the Ready-to-Drink portfolio, where reported sales rose 20% and organic sales increased 11%. New Mix, the tequila-based brand, led the category with 48% sales growth.

Emerging markets provided a bright spot, with net sales rising 11% organically 9%, led by Mexico. Conversely, Tequila sales declined 12%, and Herradura fell 17% due to lower U.S. volumes and net pricing in Mexico. U.S. net sales decreased 3% reported but were flat organically. Travel Retail sales declined 1% due to geopolitical pressures in the Middle East.

Analysts note the underlying business shows stability despite industry headwinds, citing emerging markets and ready-to-drink momentum as key growth drivers.