Duckhorn Targeting Full-Year Sales Of $400 MillionMarch 9, 2023
The Duckhorn Portfolio has posted sales up 5% to $104 million for the three months through January, representing its fiscal second quarter, with adjusted EBITDA rising 13% to $39 million. The company noted that overall “demand for high-quality luxury wines remains strong” and it’s seeing “few signs of consumers trading down.”
The Decoy by Duckhorn brand has continued to drive growth for the company lately, jumping 10% to 1.4 million cases in the U.S. in calendar 2022, according to Impact Databank, with the Duckhorn Vineyards label contributing an estimated 7.5% gain to just under 300,000 cases.
Duckhorn said its second quarter sales were propelled by “positive price/mix contribution (+5.2%), mainly attributable to strong DTC channel performance, including the second quarter Kosta Browne offerings that were met with robust demand,” adding that price increases in its wholesale channel more than offset a 0.4% volume decline against the prior year.
Indeed, the Napa Valley-based winery’s DTC sales increased by nearly 60% year-on-year to represent almost 20% of revenue, benefiting from Kosta Browne’s single-vineyard and Burgundy releases. Duckhorn’s wholesale channel accounted for 61% of sales during the quarter, compared with 67% a year earlier, with its California direct-to-trade segment representing the remaining 19% of the business.
“We continue to consistently take share and outperform our peers in the high-growth luxury subsegment of the wine industry,” said Duckhorn chairman, CEO, and president Alex Ryan. “Our robust performance in the first half of the year reflects both the strength of our luxury portfolio and the resilience of our customers.”
After the second quarter increase, Duckhorn raised its full-year sales target to $398-$404 million, with adjusted EBITDA expected to come in between $135-$138 million. In addition to Duckhorn Vineyards, Decoy, and Kosta Browne, the company’s brand portfolio includes Paraduxx, Goldeneye, Migration, Canvasback, Calera, Greenwing, and Postmark, with its 1,100 vineyard acres spread across 32 estate properties and price points ranging from $20 to $200 a bottle.—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.
Tagged : Decoy, duckhorn, Golden, Kosta Browne, Migration, Paraduxx
GET YOUR FIRST LOOK AT 2021 DATA AND 2022 PROJECTIONS FOR THE WINE AND SPIRITS INDUSTRIES. ORDER YOUR 2022 IMPACT DATABANK REPORTS. CLICK HERE.