BF

Brown-Forman Corporation stock research

Apr 30, 2025

FY2025 Q4

Brown-Forman (BF-B) Gross Margin — Quarter Ended Apr 30, 2025

Revenue, gross profit, and gross margin all declined compared to both the prior quarter and the same quarter last year. Cost of revenue decreased at a slower rate than revenue, putting downward pressure on gross margin.

Gross margin takeaway

Quarter ended Apr 30, 2025 · FY2025 Q4

Revenue, gross profit, and gross margin all declined compared to both the prior quarter and the same quarter last year. Cost of revenue decreased at a slower rate than revenue, putting downward pressure on gross margin.

  • The decline in gross profit was driven by a larger proportional drop in revenue relative to the reduction in cost of revenue.
  • Compared to the prior quarter, gross margin weakened, and versus the same quarter last year, it was also lower. Revenue and gross profit were both lower in both comparisons.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

57.4%

Gross profit

$513.0M

Revenue

$894.0M

Cost of revenue

$381.0M

Quarter-over-quarter change

-2.4 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.

PeriodRevenueGross profitCost of revenueGross margin
Jul 31, 2024$951.0M$565.0M$386.0M59.4%
Oct 31, 2024$1.1B$646.0M$449.0M59.0%
Jan 31, 2025$1.0B$619.0M$416.0M59.8%
Apr 30, 2025$894.0M$513.0M$381.0M57.4%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jan 31, 2025

-2.4 pts

Year-over-year change

Apr 30, 2024

-1.6 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The decline in gross profit was driven by a larger proportional drop in revenue relative to the reduction in cost of revenue.

Compared to the prior quarter, gross margin weakened, and versus the same quarter last year, it was also lower. Revenue and gross profit were both lower in both comparisons.

Monitor the trajectory of cost of revenue relative to revenue to assess whether gross margin can stabilize.