Brown-Forman Corporation stock research
FY2025 Q1
Brown-Forman (BF-B) Gross Margin — Quarter Ended Jul 31, 2024
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue was relatively stable. Gross margin improved slightly from the prior quarter but weakened notably from the same quarter a year ago.
Gross margin takeaway
Quarter ended Jul 31, 2024 · FY2025 Q1
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue was relatively stable. Gross margin improved slightly from the prior quarter but weakened notably from the same quarter a year ago.
- The gross margin improved modestly from the preceding quarter, driven by a lower cost of revenue relative to revenue. The year-over-year decline in gross margin was primarily due to a larger drop in gross profit compared to the change in cost of revenue.
- Compared to the prior quarter, revenue was slightly lower and gross profit was slightly lower, but cost of revenue decreased, leading to a marginally higher gross margin. Versus the same quarter last year, revenue and gross profit were substantially lower, while cost of revenue was nearly unchanged, resulting in a materially lower gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.4%
Gross profit
$565.0M
Revenue
$951.0M
Cost of revenue
$386.0M
Quarter-over-quarter change
+0.4 pts
Year-over-year change
-3.3 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 |
|---|---|---|---|---|
| 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% |
| Jul 31, 2024 | $951.0M | $565.0M | $386.0M | 59.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 30, 2024
+0.4 pts
Year-over-year change
Jul 31, 2023
-3.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved modestly from the preceding quarter, driven by a lower cost of revenue relative to revenue. The year-over-year decline in gross margin was primarily due to a larger drop in gross profit compared to the change in cost of revenue.
Compared to the prior quarter, revenue was slightly lower and gross profit was slightly lower, but cost of revenue decreased, leading to a marginally higher gross margin. Versus the same quarter last year, revenue and gross profit were substantially lower, while cost of revenue was nearly unchanged, resulting in a materially lower gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as its stability amid declining sales has been a key factor in gross margin changes.