Constellation Brands, Inc. stock research
FY2025 Q1
Constellation Brands (STZ) Gross Margin — Quarter Ended May 31, 2024
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin improved relative to both periods, driven by a larger increase in gross profit relative to cost of revenue.
Gross margin takeaway
Quarter ended May 31, 2024 · FY2025 Q1
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin improved relative to both periods, driven by a larger increase in gross profit relative to cost of revenue.
- The relationship between gross profit and cost of revenue was the strongest observable driver, as gross profit rose while cost of revenue grew at a slower pace, lifting gross margin.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, while cost of revenue was lower, resulting in an improved gross margin. Versus the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, with gross margin strengthening.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
52.7%
Gross profit
$1.4B
Revenue
$2.7B
Cost of revenue
$1.3B
Quarter-over-quarter change
+1.3 pts
Year-over-year change
+2.7 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 |
|---|---|---|---|---|
| May 31, 2023 | $2.5B | $1.3B | $1.3B | 50.0% |
| Aug 31, 2023 | $2.8B | $1.4B | $1.4B | 51.1% |
| Nov 30, 2023 | $2.5B | $1.3B | $1.2B | 51.4% |
| May 31, 2024 | $2.7B | $1.4B | $1.3B | 52.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 30, 2023
+1.3 pts
Year-over-year change
May 31, 2023
+2.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between gross profit and cost of revenue was the strongest observable driver, as gross profit rose while cost of revenue grew at a slower pace, lifting gross margin.
Compared to the immediately preceding quarter, revenue and gross profit were higher, while cost of revenue was lower, resulting in an improved gross margin. Versus the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, with gross margin strengthening.
Monitor the relationship between gross profit and cost of revenue trends in future filings for any shift in the margin trajectory.