$NAPA reports strong financial results for Duckhorn Portfolio in Q1 2023
Mar 8th 2023, 9:09 pm
Analyst Summary: The Duckhorn Portfolio, a premier luxury wine company, reported robust financial results with net sales of $103.4 million for the three months ending January 31, 2023, an increase of 4% YoY. The gross profit margin increased 320 basis points YoY to 53%, and the adjusted gross profit margin was 53%, also up 320 basis points YoY. The CEO affirmed this performance to be a reflection of the strength of the company's luxury portfolio and the resilience of their customers who continue to choose their brand. On the back of another strong quarter, the company raised and tightened its fiscal year 2023 net sales, adjusted EBITDA, and adjusted EPS guidance. The upwardly revised guidance ranges include net sales $410 - $422 million, adjusted EBITDA $135 - $143 million, and adjusted EPS $1.41 - $1.54. This is attributable to the strong performance of their DTC channel and the contribution of favourable brand and channel mix, price increases, and the frequency of Kosta Browne offerings. Investors should be aware that the company has included Non-GAAP financial measures such as adjusted gross profit, adjusted EBITDA, adjusted net income, and adjusted EPS, to evaluate business performance and should consider the risks and uncertainties associated with investments in a luxury wine business.