BF-B · News · 20260902N

Operating Margin Drivers

BROWN FORMAN CORP · 2026-09-02 · Importance 25 · Surprise 32

Brown-Forman's gross margin expanded 40 basis points to 60.2% in the first quarter of fiscal 2027. Reported operating income declined 3%, while organic operating income increased 4%. The company cited higher-cost whiskey inventory and input costs as potential margin pressures later in fiscal 2027.

Key facts

• Brown-Forman's reported operating income declined 3% in the first quarter of fiscal 2027, while organic operating income increased 4%. source
• Brown-Forman warned that higher-cost whiskey inventory and input costs could pressure margins later in fiscal 2027. source
• Brown-Forman's organic advertising expense declined 4%, primarily due to timing. source
• Brown-Forman's organic SG&A increased 5%, driven by costs associated with organizational changes. source
• Brown-Forman's gross margin expanded 40 basis points to 60.2% in the first quarter of fiscal 2027. source