Constellation Brands, Inc. stock research
FY2025 Q2
Constellation Brands (STZ) Gross Margin — Quarter Ended Aug 31, 2024
Revenue and gross profit both increased compared to the previous quarter and the same quarter last year. Gross margin improved relative to a year ago but weakened slightly from the immediate prior quarter.
Gross margin takeaway
Quarter ended Aug 31, 2024 · FY2025 Q2
Revenue and gross profit both increased compared to the previous quarter and the same quarter last year. Gross margin improved relative to a year ago but weakened slightly from the immediate prior quarter.
- Gross margin was higher than a year ago but lower than the preceding quarter, indicating a mixed trend. Revenue growth outpaced cost of revenue growth on a year-over-year basis, supporting the margin improvement.
- Compared to the immediately preceding quarter, gross margin was lower while revenue was higher. Compared to the same quarter one year earlier, both revenue and gross margin were higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
51.8%
Gross profit
$1.5B
Revenue
$2.9B
Cost of revenue
$1.4B
Quarter-over-quarter change
-0.9 pts
Year-over-year change
+0.7 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 |
|---|---|---|---|---|
| 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% |
| Aug 31, 2024 | $2.9B | $1.5B | $1.4B | 51.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 31, 2024
-0.9 pts
Year-over-year change
Aug 31, 2023
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin was higher than a year ago but lower than the preceding quarter, indicating a mixed trend. Revenue growth outpaced cost of revenue growth on a year-over-year basis, supporting the margin improvement.
Compared to the immediately preceding quarter, gross margin was lower while revenue was higher. Compared to the same quarter one year earlier, both revenue and gross margin were higher.
Monitor whether gross margin can stabilize at or above the level of the preceding quarter after the slight decline.