Brown-Forman Corporation stock research
FY2025 Q3
Brown-Forman (BF-B) Gross Margin — Quarter Ended Jan 31, 2025
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 improved slightly from the prior quarter but weakened relative to the year-ago period.
Gross margin takeaway
Quarter ended Jan 31, 2025 · FY2025 Q3
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 improved slightly from the prior quarter but weakened relative to the year-ago period.
- The gross margin improvement from the prior quarter was driven by a proportionally larger decline in cost of revenue relative to revenue. The year-over-year weakening reflects a less favorable relationship between revenue and cost of revenue.
- Compared to the prior quarter, gross margin was higher as cost of revenue fell more sharply than revenue. Compared to the same quarter last year, gross margin was lower despite a smaller decline in cost of revenue relative to revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.8%
Gross profit
$619.0M
Revenue
$1.0B
Cost of revenue
$416.0M
Quarter-over-quarter change
+0.8 pts
Year-over-year change
+0.4 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 |
|---|---|---|---|---|
| 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% |
| Jan 31, 2025 | $1.0B | $619.0M | $416.0M | 59.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 31, 2024
+0.8 pts
Year-over-year change
Jan 31, 2024
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement from the prior quarter was driven by a proportionally larger decline in cost of revenue relative to revenue. The year-over-year weakening reflects a less favorable relationship between revenue and cost of revenue.
Compared to the prior quarter, gross margin was higher as cost of revenue fell more sharply than revenue. Compared to the same quarter last year, gross margin was lower despite a smaller decline in cost of revenue relative to revenue.
Monitor the trajectory of cost of revenue relative to revenue, as its proportion has shifted between periods.