Duckhorn Expecting Full-Year Sales Of About $400 Million

Duckhorn has raised its full-year guidance despite a slight decline in sales in its third quarter ending in April. For the third quarter, the California winemaker’s sales slipped 0.4% to $91 million, but adjusted EBITDA rose 9% to $35.8 million.

According to the company, the net sales decrease was due to “the impact of previously announced shifts in DTC channel shipments between Fiscal Q3 and Fiscal Q4 versus the prior year period, partially offset by price increases and volume contribution. Absent the planned shifts in DTC channel shipments, we would have seen low double-digit net sales growth in the quarter, which speaks to the health of the business.” Sales to wholesalers accounted for 69% of the business in the third quarter, while DTC took a 14% share—down from 21% a year earlier—and the California direct-to-trade segment was roughly steady at 17%.

Duckhorn is now targeting full-year sales of $400-$404 million and adjusted EBITDA of $138-$140 million for the 12 months through July. Top brand Decoy by Duckhorn has expanded by approximately 570,000 cases since pre-pandemic, finishing 2022 at over 1.4 million cases in the U.S., according to Impact Databank. The Decoy Limited brand also fared especially well last year, increasing 30% to 123,000 cases.—Daniel Marsteller

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