More on Boston Beer (SAM): Q1 comes in mixed, beating on top line sales but coming up short on its bottom line. Net profit dropped 7.8% as higher brewing costs weighed on margins. Operating margins came in at 49.9%, far off the company's target of around 53% to 55%. Additionally, in its call, management warns that competition in the space has intensified as both big and small brewers are aggressively pushing their craft brands. To combat the threat, SAM has beefed up its marketing efforts. Consequently, ad, promotional and selling expenses climbed 19% Y/Y. Earnings Call Webcast.