Brown-Forman Corporation stock research
FY2025 Q2
Brown-Forman (BF-B) Gross Margin — Quarter Ended Oct 31, 2024
For the quarter, revenue increased sequentially but was unchanged from a year earlier. Gross profit rose from the prior quarter but fell compared to the same quarter last year, reflecting a cost of revenue that grew faster than revenue on a sequential basis and increased year-over-year while revenue held steady, resulting in a gross margin decline.
Gross margin takeaway
Quarter ended Oct 31, 2024 · FY2025 Q2
For the quarter, revenue increased sequentially but was unchanged from a year earlier. Gross profit rose from the prior quarter but fell compared to the same quarter last year, reflecting a cost of revenue that grew faster than revenue on a sequential basis and increased year-over-year while revenue held steady, resulting in a gross margin decline.
- The primary margin driver was the change in cost of revenue relative to revenue. Cost of revenue grew faster than revenue sequentially and increased year-over-year while revenue was flat, compressing gross margin.
- Compared to the prior quarter, revenue, gross profit, and cost of revenue all increased, but gross margin weakened slightly. Compared to the same quarter last year, revenue was flat, gross profit was lower, cost of revenue was higher, and gross margin declined.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.0%
Gross profit
$646.0M
Revenue
$1.1B
Cost of revenue
$449.0M
Quarter-over-quarter change
-0.4 pts
Year-over-year change
-1.6 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, 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% |
| Oct 31, 2024 | $1.1B | $646.0M | $449.0M | 59.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 31, 2024
-0.4 pts
Year-over-year change
Oct 31, 2023
-1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary margin driver was the change in cost of revenue relative to revenue. Cost of revenue grew faster than revenue sequentially and increased year-over-year while revenue was flat, compressing gross margin.
Compared to the prior quarter, revenue, gross profit, and cost of revenue all increased, but gross margin weakened slightly. Compared to the same quarter last year, revenue was flat, gross profit was lower, cost of revenue was higher, and gross margin declined.
Monitor the trajectory of cost of revenue, as it has grown faster than revenue both sequentially and year-over-year.