Brown-Forman Corporation stock research
FY2024 Q4
Brown-Forman (BF-B) Gross Margin — Quarter Ended Apr 30, 2024
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened slightly from the prior quarter and more notably from a year ago, reflecting a lower proportion of revenue retained as gross profit.
Gross margin takeaway
Quarter ended Apr 30, 2024 · FY2024 Q4
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened slightly from the prior quarter and more notably from a year ago, reflecting a lower proportion of revenue retained as gross profit.
- The decline in gross profit was proportionally larger than the decline in revenue, indicating that cost of revenue did not decrease at the same rate as revenue. This compressed gross margin relative to both comparison periods.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin was slightly lower. Compared to the same quarter one year earlier, revenue and gross profit were lower, and gross margin was lower by a more noticeable degree.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.0%
Gross profit
$569.0M
Revenue
$964.0M
Cost of revenue
$395.0M
Quarter-over-quarter change
-0.4 pts
Year-over-year change
-1.7 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 |
|---|---|---|---|---|
| Jul 31, 2023 | $1.0B | $651.0M | $387.0M | 62.7% |
| Oct 31, 2023 | $1.1B | $671.0M | $436.0M | 60.6% |
| Jan 31, 2024 | $1.1B | $635.0M | $434.0M | 59.4% |
| Apr 30, 2024 | $964.0M | $569.0M | $395.0M | 59.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 31, 2024
-0.4 pts
Year-over-year change
Apr 30, 2023
-1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in gross profit was proportionally larger than the decline in revenue, indicating that cost of revenue did not decrease at the same rate as revenue. This compressed gross margin relative to both comparison periods.
Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin was slightly lower. Compared to the same quarter one year earlier, revenue and gross profit were lower, and gross margin was lower by a more noticeable degree.
Monitor the trajectory of cost of revenue relative to revenue, as its slower decline contributed to margin compression.