BF-B · 8-K · 20260902PR000048

Gross and Operating Margins

BROWN FORMAN CORP · 2026-09-02 · Importance 24 · Surprise 14 · No source text

Gross margin expanded 40 basis points to 60.2% in the first quarter of fiscal 2027, with gross profit down 1% reported and up 1% organically. Lower costs and the end of the Korbel relationship supported gross margin, while foreign exchange and unfavorable price/mix partly offset the improvement. Operating income decreased 3% to $252 million, although it increased 4% organically. Operating margin fell 50 basis points to 27.7%, primarily because of higher operating expenses, partly offset by gross margin expansion.

Key facts

• First-quarter fiscal 2027 reported operating income decreased 3% to $252 million, while organic operating income increased 4%. source
• First-quarter fiscal 2027 gross profit decreased 1% (organic gross profit increased 1%) and gross margin expanded 40 basis points to 60.2%. source
• First-quarter fiscal 2027 operating income decreased 3% (organic operating income increased 4%) and operating margin decreased 50 basis points to 27.7%, primarily due to higher operating expenses, partly offset by gross margin expansion. source
• First-quarter fiscal 2027 gross margin expanded 40 basis points, driven by lower costs and partially offset by foreign exchange. source

Impact estimates