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Duckhorn’s Sales Reach $108 Million in First Quarter 2023

December 8, 2022

California’s Duckhorn reported net sales up 3.8% to $108.2 million for its first fiscal quarter 2023. While these gains are smaller than posted for Q1 2022, the company notes that the Kosta Browne series of single vineyard releases, which were previous staples of the first quarter, have been shifted to Q2 for 2023. That aside, gross profit rose, too, by 4.4% to $54.7 million.

Over 75% of the company’s sales in the quarter were through the three-tier distribution system, with Duckhorn’s California-based direct to trade sales accounting for 15.8% of sales and national DTC accounting for the remaining 7.8%. This marks a significant shift over Q1 2022, with DTC’s contribution cut roughly in half, with that share being taken by three-tier distribution.

Volumetrically, Duckhorn’s portfolio was up 9.2% outpacing the previous year’s 7.5% rise. Price/mix contribution, however, declined by 5.4%, which the company attributed to the shift of the Kosta Browne single vineyard releases. Additional EBITDA was down 6.4% to $35.7 million. “We are off to a strong start to the year and are confident in our ability to deliver our fiscal 2023 financial targets,” said chairman, president, and CEO Alex Ryan. “Longer term, with premiumization tailwinds at our back, we believe we will continue to leverage our unrivaled brand strength and scaled omni-channel platform to further drive penetration of our considerable wholesale distribution whitespace opportunity and enhance our profitability for the benefit of all stakeholders over time.”

Finally, Duckhorn announced that long time CFO Lori Beaudoin plans to retire in the spring of 2023 after 13 years in the role. The company is undergoing a national search for its next CFO and Beaudoin has committed to remaining in her role until a new financial officer has been hired. After her retirement, she will remain as a senior advisor to Duckhorn. “I take pride in all that we have achieved in my time here, and could not be more confident in the team we have built to ensure The Duckhorn Portfolio will remain a driving force within the luxury wine category for years to come,” she said.

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