Constellation Brands, Inc. stock research
FY2025 Q3
Constellation Brands (STZ) Gross Margin — Quarter Ended Nov 30, 2024
Revenue was unchanged year over year but lower than the prior quarter, while gross profit and cost of revenue moved in the same direction. Gross margin improved versus both the prior quarter and the same quarter last year, indicating a more efficient cost structure relative to revenue.
Gross margin takeaway
Quarter ended Nov 30, 2024 · FY2025 Q3
Revenue was unchanged year over year but lower than the prior quarter, while gross profit and cost of revenue moved in the same direction. Gross margin improved versus both the prior quarter and the same quarter last year, indicating a more efficient cost structure relative to revenue.
- The gross margin widened sequentially and year over year, showing improvement even as revenue declined from the prior quarter. This suggests that cost of revenue decreased more than proportionally, supporting margin expansion.
- Revenue was stable compared to a year ago and lower than the prior quarter. Gross profit and cost of revenue mirrored the revenue pattern, while gross margin was slightly higher than both comparison periods.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
52.1%
Gross profit
$1.3B
Revenue
$2.5B
Cost of revenue
$1.2B
Quarter-over-quarter change
+0.3 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 |
|---|---|---|---|---|
| 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% |
| Nov 30, 2024 | $2.5B | $1.3B | $1.2B | 52.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 31, 2024
+0.3 pts
Year-over-year change
Nov 30, 2023
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin widened sequentially and year over year, showing improvement even as revenue declined from the prior quarter. This suggests that cost of revenue decreased more than proportionally, supporting margin expansion.
Revenue was stable compared to a year ago and lower than the prior quarter. Gross profit and cost of revenue mirrored the revenue pattern, while gross margin was slightly higher than both comparison periods.
Monitor whether the cost of revenue continues to decline relative to revenue, as that has been the key factor behind the margin improvement.