(Reuters) - Jack Daniel's maker Brown-Forman ( BF/A ) missed Wall Street estimates for third-quarter sales on Wednesday, hurt by falling demand for its whiskey and tequila particularly in the United States.

Shares of the company were up 7% in early trade despite the sales miss.

The liquor maker reaffirmed its fiscal 2025 profit and organic net sales forecasts. It did not specify if it was accounting for the impact from U.S. tariffs on its performance.

The operating environment continues to be increasingly volatile due to geopolitical uncertainties and global macroeconomic conditions, Brown-Forman ( BF/A ) said.

The company has been reeling from a slowdown in demand so far this year, led by the U.S., Canada and Europe which offset benefits from stronger sales in emerging markets such as Mexico and Poland.

Meanwhile, U.S. tariffs of 25% on imports from Canada and Mexico kicked in on Tuesday, alongside the doubling of China tariffs to 20%.

Brown Forman ( BF/A ) has undertaken cost cutting measures, which analysts have said is a response to a more challenging environment both for the company and the broader spirits industry.

Last month, it announced a 12% global workforce reduction and closed its Louisville cooperage plant, measures that will save the company between $70 million to $80 million annually.

Net sales for the quarter ended January 31 fell 3% to $1.04 billion from a year ago, compared with analysts' estimate of $1.07 billion, according to data compiled by LSEG.

On an adjusted basis, the company earned 43 cents per share for the reported quarter, missing estimates of 46 cents.

It reaffirmed full-year net sales growth in the range of 2% to 4% and organic operating income forecast to be in the range of 2% to 4% rise.