Brown-Forman Corporation stock research
FY2024 Q1
Brown-Forman (BF-B) Gross Margin — Quarter Ended Jul 31, 2023
Revenue remained stable compared to both the prior quarter and the same quarter a year earlier. Gross profit increased and cost of revenue decreased from the prior quarter, while from the year-ago quarter gross profit also increased despite a slight rise in cost of revenue, resulting in a higher gross margin in both comparisons.
Gross margin takeaway
Quarter ended Jul 31, 2023 · FY2024 Q1
Revenue remained stable compared to both the prior quarter and the same quarter a year earlier. Gross profit increased and cost of revenue decreased from the prior quarter, while from the year-ago quarter gross profit also increased despite a slight rise in cost of revenue, resulting in a higher gross margin in both comparisons.
- The primary observable driver was the reduction in cost of revenue from the prior quarter, which directly supported a higher gross profit and gross margin. This factor was the most significant change among the metrics.
- Compared to the prior quarter, gross margin strengthened as cost of revenue declined while revenue held steady. Relative to the same quarter last year, gross margin also improved, with gross profit increasing even though cost of revenue was slightly higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
62.7%
Gross profit
$651.0M
Revenue
$1.0B
Cost of revenue
$387.0M
Quarter-over-quarter change
+2.0 pts
Year-over-year change
+0.9 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jan 31, 2023 | $1.1B | $624.0M | $457.0M | 57.7% |
| Apr 30, 2023 | $1.0B | $635.0M | $411.0M | 60.7% |
| Jul 31, 2023 | $1.0B | $651.0M | $387.0M | 62.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 30, 2023
+2.0 pts
Year-over-year change
Jul 31, 2022
+0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver was the reduction in cost of revenue from the prior quarter, which directly supported a higher gross profit and gross margin. This factor was the most significant change among the metrics.
Compared to the prior quarter, gross margin strengthened as cost of revenue declined while revenue held steady. Relative to the same quarter last year, gross margin also improved, with gross profit increasing even though cost of revenue was slightly higher.
Monitor whether cost of revenue remains at the lower level observed in the current quarter or reverts toward the prior quarter's level.