Dive Brief:
- Remy Cointreau reported sales of $290.4 million in the fiscal first quarter, down 5.7% from a year earlier and worse than analysts had forecast.
- The company, which makes Remy Martin cognac, Cointreau liqueur, and other champagne and spirits, said revenue in its cognac unit fell 15% -- more than the 11% fall analysts had expected.
- Sales of cognac, which account for 80% of Remy Cointreau's profit, have plummeted in China as the nation cracks down on bribery. Bottles of cognac were a preferred gift for bureaucrats prior to the launch of anti-corruption campaigns there.
Dive Insight:
The bad news just keeps coming for Remy Cointreau. The most-recent numbers may not be as bad as those of fiscal year that ended in March, but there's nothing in the earnings report to promote optimism.
Still, it's too early to say if Remy's new CEO is making headway. The first fiscal quarter ended just days into her tenure.