ST

Constellation Brands, Inc. stock research

May 31, 2023

FY2024 Q1

Constellation Brands (STZ) Gross Margin — Quarter Ended May 31, 2023

Revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose. Gross margin improved from the prior quarter but weakened relative to the same quarter last year.

Gross margin takeaway

Quarter ended May 31, 2023 · FY2024 Q1

Revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose. Gross margin improved from the prior quarter but weakened relative to the same quarter last year.

  • Gross margin in the current quarter is between the higher year-ago level and the lower prior-quarter level, reflecting a mixed trend. The improvement from the prior quarter is the most notable sequential change.
  • Compared to the prior quarter, revenue and gross profit are higher, and gross margin has improved. Compared to the same quarter last year, revenue is slightly higher, but gross profit is similar and gross margin is lower.

Gross margin snapshot

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

Gross margin

50.0%

Gross profit

$1.3B

Revenue

$2.5B

Cost of revenue

$1.3B

Quarter-over-quarter change

n/a

Year-over-year change

-3.1 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
May 31, 2023$2.5B$1.3B$1.3B50.0%

Quarterly comparisons

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

Previous-quarter change

Previous quarter unavailable

n/a

Year-over-year change

May 31, 2022

-3.1 pts

What the margin says

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

Gross margin in the current quarter is between the higher year-ago level and the lower prior-quarter level, reflecting a mixed trend. The improvement from the prior quarter is the most notable sequential change.

Compared to the prior quarter, revenue and gross profit are higher, and gross margin has improved. Compared to the same quarter last year, revenue is slightly higher, but gross profit is similar and gross margin is lower.

Monitor the trend in gross margin relative to the prior quarter's improvement to see if the sequential strengthening is sustained.

STZ Gross Margin — Quarter Ended May 31, 2023