Brown-Forman Corporation stock research
FY2024 Q2
Brown-Forman (BF-B) Gross Margin — Quarter Ended Oct 31, 2023
Revenue was stable compared to the same quarter last year and higher than the prior quarter. Gross profit improved relative to both periods, while cost of revenue was lower year over year but higher sequentially, resulting in a gross margin that strengthened from a year ago but weakened from the preceding quarter.
Gross margin takeaway
Quarter ended Oct 31, 2023 · FY2024 Q2
Revenue was stable compared to the same quarter last year and higher than the prior quarter. Gross profit improved relative to both periods, while cost of revenue was lower year over year but higher sequentially, resulting in a gross margin that strengthened from a year ago but weakened from the preceding quarter.
- The gross margin improved notably from the same quarter one year earlier, driven by a lower cost of revenue relative to revenue. The sequential decline from the prior quarter reflects a higher cost of revenue relative to the increase in revenue.
- Compared to the prior quarter, revenue increased while gross profit rose less proportionally, causing gross margin to weaken. Versus the same quarter last year, revenue was essentially flat but gross profit was higher, leading to a stronger gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
60.6%
Gross profit
$671.0M
Revenue
$1.1B
Cost of revenue
$436.0M
Quarter-over-quarter change
-2.1 pts
Year-over-year change
+4.6 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% |
| Oct 31, 2023 | $1.1B | $671.0M | $436.0M | 60.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 31, 2023
-2.1 pts
Year-over-year change
Oct 31, 2022
+4.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved notably from the same quarter one year earlier, driven by a lower cost of revenue relative to revenue. The sequential decline from the prior quarter reflects a higher cost of revenue relative to the increase in revenue.
Compared to the prior quarter, revenue increased while gross profit rose less proportionally, causing gross margin to weaken. Versus the same quarter last year, revenue was essentially flat but gross profit was higher, leading to a stronger gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as its sequential increase outpaced revenue growth and compressed gross margin.