The Duckhorn Portfolio, Inc. (NAPA) 10-Q 8 Dec 21 2022 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Oct. 31, 2021	Nov. 30, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Oct. 31, 2021
Document Transition Report	false
Entity File Number	001-40240
Entity Registrant Name	The Duckhorn Portfolio, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	81-3866305
Entity Address, Address Line One	1201 Dowdell Lane
Entity Address, City or Town	Saint Helena
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94574
City Area Code	707
Local Phone Number	302-2658
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	NAPA
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		115,046,793
Amendment Flag	false
Entity Central Index Key	0001835256
Current Fiscal Year End Date	--07-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1

Condensed Consolidated Statemen

Condensed Consolidated Statements of Financial Position - USD ($) $ in Thousands	Oct. 31, 2021	Jul. 31, 2021
Current assets
Cash	$ 5,247	$ 4,244
Accounts receivable trade, net	59,618	33,253
Inventories	319,224	267,737
Prepaid expenses and other current assets	8,693	9,167
Total current assets	392,782	314,401
Long-term assets
Property and equipment, net	244,397	240,939
Intangible assets, net	198,626	200,547
Goodwill	425,209	425,209
Other long-term assets	2,080	2,021
Total long-term assets	870,312	868,716
Total assets	1,263,094	1,183,117
Current liabilities
Accounts payable	52,780	3,556
Accrued expenses	50,690	21,557
Accrued compensation	10,755	16,845
Deferred revenue	3,933	3,102
Current maturities of long-term debt	11,284	11,324
Other current liabilities	395	397
Total current liabilities	129,837	56,781
Long-term liabilities
Revolving line of credit, net	108,679	121,348
Long-term debt, net of current maturities and debt issuance costs	111,887	114,625
Deferred income taxes	86,667	86,667
Other long-term liabilities	1,014	1,458
Total long-term liabilities	308,247	324,098
Total liabilities	438,084	380,879
Commitments and Contingencies (Note 11)
Equity
Common stock, $0.01 par value; 500,000,000 shares authorized, 115,046,793 issued and outstanding at both October 31, 2021 and July 31, 2021	1,150	1,150
Additional paid-in capital	728,362	726,903
Retained earnings	94,907	73,634
Total The Duckhorn Portfolio, Inc. equity	824,419	801,687
Non-controlling interest	591	551
Total equity	825,010	802,238
Total liabilities and equity	$ 1,263,094	$ 1,183,117

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Operations (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2021	Oct. 31, 2020
Income Statement [Abstract]
Net sales (net of excise taxes of $1,476 and $1,265, respectively)	$ 104,181	$ 91,638
Cost of sales	51,771	47,363
Gross profit	52,410	44,275
Selling, general and administrative expenses	23,158	16,805
Casualty loss, net (Note 13)	49	1,555
Income from operations	29,203	25,915
Interest expense	1,606	3,580
Other (income) expense, net	(1,093)	(1,323)
Total other expenses	513	2,257
Income before income taxes	28,690	23,658
Income tax expense	7,377	6,136
Net income	21,313	17,522
Less: Net (income) loss attributable to non-controlling interest	(40)	1
Net income attributable to The Duckhorn Portfolio, Inc.	$ 21,273	$ 17,523
Net income per share of common stock:
Basic (in dollars per share)	$ 0.18	$ 0.17
Diluted (in dollars per share)	$ 0.18	$ 0.17
Weighted average shares of common stock outstanding:
Basic (in shares)	115,046,793	101,713,460
Diluted (in shares)	115,396,026	101,713,460

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Changes in Equity (unaudited) - USD ($) $ in Thousands	Total	Parent	Common Stock	Additional Paid-in Capital	Retained Earnings	Noncontrolling Interest
Shares, outstanding, beginning balance at Jul. 31, 2020			101,713,460
Beginning balance at Jul. 31, 2020	$ 654,604	$ 654,047	$ 1,017	$ 535,372	$ 117,658	$ 557
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	17,522	17,523			17,523	(1)
Equity-based compensation	288	288		288
Ending balance at Oct. 31, 2020	672,414	671,858	$ 1,017	535,660	135,181	556
Shares, outstanding, ending balance at Oct. 31, 2020			101,713,460
Shares, outstanding, beginning balance at Jul. 31, 2021			115,046,793
Beginning balance at Jul. 31, 2021	802,238	801,687	$ 1,150	726,903	73,634	551
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	21,313	21,273			21,273	40
Equity-based compensation	1,459	1,459		1,459
Ending balance at Oct. 31, 2021	$ 825,010	$ 824,419	$ 1,150	$ 728,362	$ 94,907	$ 591
Shares, outstanding, ending balance at Oct. 31, 2021			115,046,793

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2021	Oct. 31, 2020
Cash flows from operating activities
Net income	$ 21,313	$ 17,522
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	4,829	5,116
Loss on disposal of assets	(46)	(14)
Change in fair value of derivatives	(442)	(1,548)
Amortization of debt issuance costs	402	436
Loss on debt extinguishment	0	272
Equity-based compensation	1,459	288
Change in operating assets and liabilities:
Accounts receivable trade, net	(26,365)	(26,738)
Inventories	(51,487)	(38,920)
Prepaid expenses and other current assets	470	(3,307)
Other long-term assets	(58)	(9)
Accounts payable	48,755	9,738
Accrued expenses	29,177	35,955
Accrued compensation	(6,090)	(1,480)
Deferred revenue	830	5,139
Other current and long-term liabilities	0	37
Net cash provided by operating activities	22,747	2,487
Cash flows from investing activities
Purchases of property and equipment	(5,945)	(7,701)
Proceeds from sales of property and equipment	49	15
Net cash used in investing activities	(5,896)	(7,686)
Cash flows from financing activities
Payments under line of credit	(28,000)	(21,000)
Borrowings under line of credit	15,000	25,000
Extinguishment of long-term debt	0	(38,131)
Issuance of long-term debt	0	38,131
Payments of long-term debt	(2,848)	(3,619)
Repayment of capital leases	0	(4)
Debt issuance costs	0	(125)
Net cash (used in) provided by financing activities	(15,848)	252
Net increase (decrease) in cash	1,003	(4,947)
Cash - Beginning of year	4,244	6,252
Cash - End of year	5,247	1,305
Non-cash investing and financing activities
Property and equipment additions in accounts payable and accrued expenses	$ 1,793	$ 824

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Financial Position (Parenthetical) - $ / shares	Oct. 31, 2021	Jul. 31, 2021
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	115,046,793	115,046,793
Common stock, shares outstanding	115,046,793	115,046,793

Condensed Consolidated Statem_6

Condensed Consolidated Statements of Operations (unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2021	Oct. 31, 2020
Income Statement [Abstract]
Excise taxes	$ 1,476	$ 1,265

Description of business

Description of business	3 Months Ended
	Oct. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of business	Description of business The Duckhorn Portfolio, Inc. and its subsidiaries (the "Company" or "Management") headquartered in St. Helena, CA, produces luxury and ultra-luxury wine across a portfolio of winery brands, including Duckhorn Vineyards, Paraduxx, Goldeneye, Migration, Decoy, Canvasback, Calera, Kosta Browne, Greenwing and Postmark. The Company's revenue is comprised of wholesale and DTC sales. Wholesale revenue is generated through sales directly to California retailers and restaurants, sales to distributors and agents located in other states throughout the U.S. and sales to export distributors that sell internationally. DTC revenue results from individual consumers purchasing wine directly from the Company through club membership, the Company's website or tasting rooms located in Napa Valley, California; Anderson Valley, California; Sebastopol, California; Hollister, California; and Walla Walla, Washington. The Company owns or controls through long-term leases certain high-quality vineyards throughout Northern and Central California and Washington. Vinification takes place at wineries owned, leased or under contract with third parties predominately located in Napa Valley, California; Anderson Valley, California; Hopland, California; Hollister, California; Sebastopol, California; and Walla Walla, Washington. Fiscal year The Company's fiscal year ends on July 31. Secondary offering

Basis of presentation and signi

Basis of presentation and significant accounting policies	3 Months Ended
	Oct. 31, 2021
Accounting Policies [Abstract]
Basis of presentation and significant accounting policies	Basis of presentation and significant accounting policies Basis of presentation The Company’s Condensed Consolidated Financial Statements are prepared in accordance with U.S. GAAP and Article 10 of the Securities and Exchange Commission’s Regulation S-X. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP may be condensed or omitted. These Condensed Consolidated Financial Statements have been prepared on the same basis as the Company's audited annual financial statements and, in the opinion of Management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the Company's financial information for the interim periods presented. These interim results are not necessarily indicative of the results to be expected for the year ending July 31, 2022, for any other interim period or for any future year. The Condensed Consolidated Financial Statements are unaudited and should be read in conjunction with the audited consolidated financial statements and related notes thereto for the year ended July 31, 2021. Principles of consolidation The Condensed Consolidated Financial Statements include the accounts of The Duckhorn Portfolio, Inc. and its subsidiaries, including a consolidated VIE of which the Company has determined it is the primary beneficiary. All intercompany balances and transactions are eliminated in consolidation. Accounting estimates The preparation of Condensed Consolidated Financial Statements requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Such estimates include, but are not limited to, the following: useful lives and recoverability of long-lived assets, inventory obsolescence and reserves, capitalized indirect inventory costs, allowance for doubtful accounts receivable, calculation of accrued liabilities, customer incentive reserves, uncertain tax positions, contingent liabilities, fair value of assets and liabilities acquired in connection with business combinations, equity-based compensation and deferred revenues. Actual results could differ from those estimates. Preferred stock The Company has 100,000,000 shares of $0.01 par value preferred stock authorized, none of which are issued and outstanding. Variable interest entities The Company evaluates its ownership, contractual relationships and other interests in entities to determine the nature and extent of the interests, whether such interests are variable interests and whether the entities are VIEs in accordance with ASC 810, Consolidations. These evaluations can be complex and involve Management judgment as well as the use of estimates and assumptions based on available historical information, among other factors. Based on these evaluations, if the Company determines that it is the primary beneficiary of a VIE, the entity is consolidated into the financial statements. At October 31, 2021 and July 31, 2021, the Company's ownership percentage of the sole identified VIE was 76.2%. The VIE's net assets, were $2.4 million and $2.2 million at October 31, 2021 and July 31, 2021, respectively. The assets and liabilities, which may only be used to settle its own obligations, are primarily related to property, equipment and working capital accounts, which generally represent the amounts owned by or to the Company for the goods under current contracts. Recent accounting pronouncements As an “emerging growth company” as established by the JOBS Act, the Company is permitted to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected to use the adoption dates available to private companies. As a result, the Company’s financial statements may not be comparable to the financial statements of issuers who are required to comply with the effective date for new or revised accounting standards that are applicable to public companies. Recently issued accounting pronouncements not yet adopted: In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , and several amendments, codified as ASC 842, which supersedes prior guidance on accounting for leases under FASB ASC 840, Leases. ASU No. 2016-02, among other provisions, (i) requires lessees to classify leases as either finance or operating leases, (ii) generally requires all leases to be recorded on the Condensed Consolidated Statements of Financial Position through the recognition of right-of-use assets and corresponding lease liabilities and (iii) expands mandatory qualitative and quantitative disclosures regarding leasing activities. The FASB issued ASU No. 2020-05, “Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842) Effective dates for certain entities”, which extends the effective date for all other entities, for annual reporting periods beginning after December 15, 2021, and for interim periods within fiscal years beginning after December 15, 2022. The amended standard is effective for the Company beginning with the year ended July 31, 2023. Early adoption is permitted. The Company’s assessment of the lease standard’s impact on the Condensed Consolidated Financial Statements is ongoing, and is expected to result in the recognition of right of use assets and lease liabilities related to the Company’s operating leases. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments–Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, and also issued subsequent amendments to the initial guidance, collectively, ASC 326, to replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that requires the reflection of expected credit losses and will also require consideration of a broader range of reasonable and supportable information to determine credit loss estimates. For many entities with financial instruments, the standard will require the use of a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses, which may result in the earlier recognition of credit losses on financial instruments. This guidance will be effective for the Company beginning with the year ended July 31, 2024, with early adoption permitted. The Company is currently evaluating the impact this standard could have on the Condensed Consolidated Financial Statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) , and further issued subsequent amendments to the initial guidance. In order to ease the potential burden in accounting for reference rate reform, ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference the LIBOR or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. ASU 2020-04 applies only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued. The standard is effective immediately and may be applied prospectively through December 31, 2022. The Company is currently evaluating the impact of reference rate reform and the optional expedients provided by this standard on its contracts. In May 2021, the FASB issued ASU No. 2021-04, Earnings per Share (Topic 260), Debt - Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock Compensation (Topic 718), and Derivatives and Hedging - Contracts in Entity's Own Entity (Subtopic 815-40)

Revenue

Revenue	3 Months Ended
	Oct. 31, 2021
Revenue from Contract with Customer [Abstract]
Revenue	Revenue Disaggregated revenue information The following table presents the percentages of consolidated net sales disaggregated by sales channels: Three months ended October 31, 2021 2020 Wholesale - distributors 68.5 % 73.1 % Wholesale - California direct to retail (a) 16.4 14.3 DTC (b) 15.1 12.6 Net sales 100.0 % 100.0 % ________________________________________________ (a) Includes $1.8 million of sales related to bulk, grape and merchandise sales for the three months ended October 31, 2021 these same sales were immaterial for the three months ended October 31, 2020. (b) Includes shipping and handling revenue of $0.6 million and $0.4 million for the three months ended October 31, 2021 and 2020, respectively. Contract liabilities When the Company receives payment from a customer prior to transferring the product under the terms of a contract, the Company records deferred revenue, which represents a contract liability. The Company’s deferred revenue is primarily comprised of cash collected from DTC members for purchases ahead of the wine shipment date. The Company does not recognize revenue until control of the wine is transferred and the performance obligation is met.

Inventories

Inventories	3 Months Ended
	Oct. 31, 2021
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories were comprised of the following: (in thousands) October 31, July 31 Finished goods Bottled wine $ 111,960 $ 120,876 Merchandise 478 547 Work in progress Bulk wine 176,680 130,693 Packaging 3,107 3,541 Overhead 11,289 613 Raw materials Deferred crop costs 15,710 11,467 Total $ 319,224 $ 267,737 The Company capitalizes into inventory depreciation related to property and equipment used in the production of inventory. For the three months ended October 31, 2021 and the year ended July 31, 2021, the amount capitalized was $2.6 million and $12.5 million, respectively.

Property and equipment

Property and equipment	3 Months Ended
	Oct. 31, 2021
Property, Plant and Equipment [Abstract]
Property and equipment	Property and equipment Property and equipment was comprised of the following major components as of: (in thousands) October 31, July 31, Land $ 120,063 $ 120,063 Buildings and improvements 68,638 68,616 Vineyards and improvements 29,164 29,164 Machinery and equipment 50,711 49,607 Barrels 24,654 26,349 Total depreciable property and equipment 293,230 293,799 Less: accumulated depreciation and amortization (59,667) (58,542) Total depreciable property and equipment, net 233,563 235,257 Construction in progress 10,834 5,682 Property and equipment, net $ 244,397 $ 240,939 Depreciation expense was $0.3 million for both the three months ended October 31, 2021 and 2020. See Note 4 (Inventories) for depreciation expense capitalized into inventory.

Other intangible assets

Other intangible assets	3 Months Ended
	Oct. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Other intangible assets	Other intangible assets Intangible assets were comprised of the following components: October 31, 2021 (in thousands) Gross carrying amount Accumulated amortization Net Definite-lived intangible assets Customer relationships $ 92,720 $ 36,164 $ 56,556 Leasehold interests 1,572 402 1,170 Total definite-lived intangible assets 94,292 36,566 57,726 Indefinite-lived intangible assets Trade names 139,600 — 139,600 Lane rights 1,300 — 1,300 Total indefinite-lived intangible assets 140,900 — 140,900 Total other intangible assets $ 235,192 $ 36,566 $ 198,626 July 31, 2021 (in thousands) Gross carrying amount Accumulated amortization Net Definite-lived intangible assets Customer relationships $ 92,720 $ 34,274 $ 58,446 Leasehold interests 1,572 371 1,201 Total definite-lived intangible assets 94,292 34,645 59,647 Indefinite-lived intangible assets Trade names 139,600 — 139,600 Lane rights 1,300 — 1,300 Total indefinite-lived intangible assets 140,900 — 140,900 Total other intangible assets $ 235,192 $ 34,645 $ 200,547 The Company’s amortization expense for the three months ended October 31, 2021 and 2020 was $1.9 million. For the next five years, the Company anticipates the annual amortization of the definite-lived intangible assets that have been recorded as of October 31, 2021 to be $7.7 million per year.

Accrued expenses

Accrued expenses	3 Months Ended
	Oct. 31, 2021
Payables and Accruals [Abstract]
Accrued expenses	Accrued expenses The Company’s accrued expenses balance consisted of the following amounts: (in thousands) October 31, July 31, Trade spend (a) $ 15,920 $ 10,734 Bulk wine and other received not invoiced 15,571 1,526 Barrel purchase 998 936 Deferred compensation liability (b) 2,631 2,096 Income tax payable 3,921 — Accrued invoices and other accrued expenses 11,649 6,265 Total $ 50,690 $ 21,557 ________________________________________________ (a) Trade spend refers to estimated amounts the Company owes to distributors for depletion-based incentives granted for meeting specific depletion targets. (b) The Company intends to use the cash surrender value life insurance policies in settling its deferred compensation plan liability. The cash surrender value of the life insurance policies was $1.8 million and $1.7 million at October 31, 2021 and July 31, 2021, respectively.

Debt

Debt	3 Months Ended
	Oct. 31, 2021
Debt Disclosure [Abstract]
Debt	Debt The Company is subject to the requirements of various financial covenants pursuant to the term loans and revolving line of credit, including a debt to net worth maximum and a fixed charge coverage ratio as defined in the Credit Facility. As of October 31, 2021, the Company was not in violation of any financial covenant. Included in interest expense in the Condensed Consolidated Statements of Operations is amortization related to debt issuance costs of $0.4 million for both the three months ended October 31, 2021 and 2020. Revolving line of credit At October 31, 2021, $314.0 million was available to draw under the revolving line of credit, excluding the incremental seasonal borrowing amount of an additional $30.0 million of capacity. The weighted-average interest rate was 2.0% on the amount outstanding at October 31, 2021. There were no amounts outstanding on the letter of credit sub-facility or the swingline sub-facility at October 31, 2021.

Derivative instruments

Derivative instruments	3 Months Ended
	Oct. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative instruments	Derivative instruments The Company manages exposure to interest rates and foreign currency movements by entering into derivative contracts from time to time, as movements in such markets could impact the financial results and Condensed Consolidated Statements of Financial Position. The changes in estimated fair values of derivative instruments result from changes in interest rates and foreign currency exchange rates. Such changes serve to offset exposure in related business assets or liabilities. The Company is exposed to credit loss in the event of nonperformance by a counterparty. Certain of the Company's derivative instruments are subject to master netting agreements. In certain circumstances, this agreement allows the Company to net-settle amounts payable or receivable related to multiple derivative transactions with the same counterparty. The fair values of derivative instruments are presented on a gross basis, even when the derivative instruments are subject to master netting arrangements. Collateral is generally not required of the Company or of the counterparties to the master netting agreements, and no cash collateral was received or pledged under such agreements as of October 31, 2021 or July 31, 2021. The Company does not enter into derivative instruments for trading or speculative purposes. The Company's accounting policies do not apply hedge accounting treatment to derivative instruments. As of October 31, 2021, the Company held the following interest rate swap agreements, which fixed the interest rate on the applicable notional amount of outstanding variable rate debt: Notional amount (in thousands) Interest rate Effective date Expiration date $100,000 0.487% March 21, 2020 March 23, 2023 As discussed in Note 11 (Commitments and contingencies), the Company manages annual barrel purchases by engaging domestic and foreign cooperages to provide specified barrel quantities on agreed delivery dates. Some of these invoices are paid in Euros. In order to reduce the foreign exchange risk associated with the Euro to U.S. Dollar conversion rate, the Company enters into foreign currency forward contracts aligning settlement dates with expected barrel delivery and the anticipated payments to various coopers. The total notional amounts of the Company’s derivative instruments outstanding are as follows: (in thousands) October 31, July 31, Derivative instruments not designated as hedging instruments Interest rate swap contracts $ 100,000 $ 100,000 Foreign currency forward contracts — 2,369 Total derivative instruments not designated as hedging instruments $ 100,000 $ 102,369 Results of period derivative activity The estimated fair value and classification of derivative instruments on the accompanying Condensed Consolidated Statements of Financial Position are as follows: (in thousands) October 31, July 31, Derivative instruments not designated as hedging instruments Classification Interest rate swap contracts Derivative instrument Other long-term liabilities $ (34) $ (480) Foreign currency forward contracts Derivative instrument Other current assets $ — $ 5 The amounts and classification of the gains and losses in the Condensed Consolidated Statements of Operations related to derivative instruments not designated as hedging instruments are as follows: Three months ended October 31, (in thousands) Classification 2021 2020 Interest rate swap contracts Other (income) expense, net $ (446) $ (1,666) Foreign currency forward contracts Other (income) expense, net 4 118 Total gains $ (442) $ (1,548)

Fair value measurements

Fair value measurements	3 Months Ended
	Oct. 31, 2021
Fair Value Disclosures [Abstract]
Fair value measurements	Fair value measurements The Company applies a fair value hierarchy pursuant to ASC 820, Fair Value Measurement, which consists of three levels of inputs that may be used to measure fair value: Level 1 Inputs to fair value are quoted prices in active markets for identical assets or liabilities; Level 2 Inputs to fair value are based on observable data other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data such as interest rates or yield curves for substantially the full term of the instrument; Level 3 Inputs to fair value are based on unobservable data for the instrument and are supported by little or no market activity. Following is a description of the valuation methodologies used for instruments measured at fair value in the Condensed Consolidated Financial Statements, as well as the general classification of such instruments under the valuation hierarchy. Interest rate swap contracts: The fair value of the Company’s interest rate swap agreement is estimated with the assistance of a third party, using inputs that can be corroborated by observable market data (Level 2 of the fair value hierarchy). Foreign currency forward contracts: The fair value of the Company’s outstanding foreign currency forward contracts is estimated with the assistance of a third party, using inputs that can be corroborated by observable market data (Level 2 of the fair value hierarchy). Deferred compensation plan: Contributions to the Company’s deferred compensation plan are managed by a third-party administrative agent. The fair value of the total contributed plan assets and liabilities are based on inputs that can be corroborated by observable market data (Level 2 of the fair value hierarchy). The Company’s other financial instruments consist mainly of cash, accounts receivable, accounts payable, accrued expenses, and debt. The carrying value of all other financial instruments, except debt, approximates fair value due to the short-term nature of these assets and liabilities. The carrying value of the Company's debt approximates fair value as the interest rates are variable and reflective of market rates. Debt is categorized as a Level 2 liability within the fair value hierarchy. The Company’s assets and liabilities measured and recorded at fair value on a recurring basis at October 31, 2021, were as follows: (in thousands) Fair value measurements using: Quoted prices in active markets (Level 1) Significant other observable inputs Significant unobservable inputs Total Assets Deferred compensation plan asset $ — $ 1,764 $ — $ 1,764 Liabilities Interest rate swap contracts $ — $ 34 $ — $ 34 Deferred compensation liability — 2,631 — 2,631 The Company’s assets and liabilities measured and recorded at fair value on a recurring basis at July 31, 2021, were as follows: (in thousands) Fair value measurements using: Quoted prices in active markets (Level 1) Significant other observable inputs Significant unobservable inputs Total Assets Foreign currency forward contracts $ — $ 5 $ — $ 5 Deferred compensation plan asset — 1,719 — 1,719 Liabilities Interest rate swap contracts $ — $ 480 $ — $ 480 Deferred compensation liability — 2,096 — 2,096

Commitments and contingencies

Commitments and contingencies	3 Months Ended
	Oct. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and contingencies	Commitments and contingencies Operating leases The Company leases approximately 150 acres of vineyard property in California under various third-party operating lease agreements, with terms ranging from one At October 31, 2021, the future minimum payments under the non-cancelable operating lease agreements by fiscal year are as follows: (in thousands) Remaining portion of 2022 $ 4,122 2023 4,124 2024 4,082 2025 3,962 2026 2,637 Thereafter (collectively) 10,069 Total $ 28,996 Long-term purchase contracts The Company has entered into long-term grape purchase contracts with various growers to supply a significant portion of its future grape requirements. The lengths of the contracts typically vary from one Purchase commitments The Company enters into various contracts with third-parties for custom crush, storage and mobile bottling services. The costs related to these contracts are recorded in the period the service is provided. The contracts for custom crush services typically have minimums that the Company is required to pay if certain grape volume thresholds are not delivered. The Company does not record these minimums related to service contracts as contingent liabilities on the Condensed Consolidated Statements of Financial Position given the harvest yield size, resulting volumes and qualities of grape deliveries are not known or estimable until harvest, when all related contingencies would be resolved. Contingent liabilities The Company evaluates pending or threatened litigation, operational events which could result in regulatory or civil penalties, environmental risks, and other sources of potential contingent liabilities during the year. In accordance with applicable accounting guidance, the Company establishes an accrued liability when those matters present loss contingencies, which are both probable and reasonably estimable. As of October 31, 2021, there were no material contingent obligations requiring accrual or disclosure. In the ordinary course of business, the Company enters into agreements containing standard indemnification provisions. The aggregate maximum potential future liability of the Company under such indemnification provisions is uncertain, as these involve potential future claims against the Company that have not occurred. The Company believes the probability of incurring future obligations under these indemnification provisions is sufficiently remote. As of October 31, 2021 and July 31, 2021, no amounts have been accrued related to such indemnification provisions.

Equity-based compensation

Equity-based compensation	3 Months Ended
	Oct. 31, 2021
Share-based Payment Arrangement [Abstract]
Equity-based compensation	Equity-based compensation 2016 Equity Plan Restricted shares On August 1, 2021, 133,076 shares vested, based on the passage of time, with a weighted average grant date fair value of $14.23 and a total fair value of $1.9 million. The remaining 266,158 shares will vest over their remaining requisite service period on August 1, 2022.

Casualty loss

Casualty loss	3 Months Ended
	Oct. 31, 2021
Unusual or Infrequent Items, or Both [Abstract]
Casualty loss	Casualty loss Wildfires Several wildfires occurred in northern California in the first quarter of Fiscal 2021. Other than smoke exposure to unharvested grapes, the Company's owned and leased vineyards did not sustain damage during the fires. Fire and smoke exposure related expenses are reported on the casualty loss line in the Condensed Consolidated Statement of Operations and were immaterial in the current fiscal quarter. Smoke and fire damage to vineyards in the primary markets where the Company sources fruit rendered some of the available grapes unacceptable for the Company’s production needs. Based on an internal analysis of the impacts of these wildfires, Management believes the potential impact to the Company's operational results to be immaterial and intend to continue to monitor the ongoing effects to the business for any material changes to that conclusion.

Earnings per share

Earnings per share	3 Months Ended
	Oct. 31, 2021
Earnings Per Share [Abstract]
Earnings per share	Earnings per share Basic earnings per share is calculated by dividing the net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share reflects the dilution that would occur if any potentially dilutive instruments were exercised or converted into shares of common stock. The following is a reconciliation of the Company's basic and diluted income per share calculation: Three months ended October 31, (in thousands, except share and per share amounts) 2021 2020 Numerator - Net income attributable to The Duckhorn Portfolio, Inc. $ 21,273 $ 17,523 Denominator: Weighted average number of shares of common stock outstanding - basic 115,046,793 101,713,460 Dilutive stock options and restricted stock (a) 349,233 — Weighted average number of shares of common stock outstanding - assuming dilution 115,396,026 101,713,460 Earnings per share attributable to The Duckhorn Portfolio, Inc. Basic $ 0.18 $ 0.17 Diluted $ 0.18 $ 0.17 ________________________________________________ (a) Calculated using the treasury stock method. There were 2,925 outstanding common stock awards deemed anti-dilutive for the three months ended October 31, 2021 and no outstanding awards deemed anti-dilutive for the three months ended October 31, 2020.

Basis of presentation and sig_2

Basis of presentation and significant accounting policies (Policies)	3 Months Ended
	Oct. 31, 2021
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation The Company’s Condensed Consolidated Financial Statements are prepared in accordance with U.S. GAAP and Article 10 of the Securities and Exchange Commission’s Regulation S-X. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP may be condensed or omitted. These Condensed Consolidated Financial Statements have been prepared on the same basis as the Company's audited annual financial statements and, in the opinion of Management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the Company's financial information for the interim periods presented. These interim results are not necessarily indicative of the results to be expected for the year ending July 31, 2022, for any other interim period or for any future year.
Principles of consolidation	Principles of consolidation The Condensed Consolidated Financial Statements include the accounts of The Duckhorn Portfolio, Inc. and its subsidiaries, including a consolidated VIE of which the Company has determined it is the primary beneficiary. All intercompany balances and transactions are eliminated in consolidation.
Accounting estimates	Accounting estimates The preparation of Condensed Consolidated Financial Statements requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues
Preferred stock	Preferred stockThe Company has 100,000,000 shares of $0.01 par value preferred stock authorized, none of which are issued and outstanding.
Variable interest entities	Variable interest entitiesThe Company evaluates its ownership, contractual relationships and other interests in entities to determine the nature and extent of the interests, whether such interests are variable interests and whether the entities are VIEs in accordance with ASC 810, Consolidations. These evaluations can be complex and involve Management judgment as well as the use of estimates and assumptions based on available historical information, among other factors. Based on these evaluations, if the Company determines that it is the primary beneficiary of a VIE, the entity is consolidated into the financial statements.
Recent accounting pronouncements	Recent accounting pronouncements As an “emerging growth company” as established by the JOBS Act, the Company is permitted to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected to use the adoption dates available to private companies. As a result, the Company’s financial statements may not be comparable to the financial statements of issuers who are required to comply with the effective date for new or revised accounting standards that are applicable to public companies. Recently issued accounting pronouncements not yet adopted: In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , and several amendments, codified as ASC 842, which supersedes prior guidance on accounting for leases under FASB ASC 840, Leases. ASU No. 2016-02, among other provisions, (i) requires lessees to classify leases as either finance or operating leases, (ii) generally requires all leases to be recorded on the Condensed Consolidated Statements of Financial Position through the recognition of right-of-use assets and corresponding lease liabilities and (iii) expands mandatory qualitative and quantitative disclosures regarding leasing activities. The FASB issued ASU No. 2020-05, “Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842) Effective dates for certain entities”, which extends the effective date for all other entities, for annual reporting periods beginning after December 15, 2021, and for interim periods within fiscal years beginning after December 15, 2022. The amended standard is effective for the Company beginning with the year ended July 31, 2023. Early adoption is permitted. The Company’s assessment of the lease standard’s impact on the Condensed Consolidated Financial Statements is ongoing, and is expected to result in the recognition of right of use assets and lease liabilities related to the Company’s operating leases. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments–Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, and also issued subsequent amendments to the initial guidance, collectively, ASC 326, to replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that requires the reflection of expected credit losses and will also require consideration of a broader range of reasonable and supportable information to determine credit loss estimates. For many entities with financial instruments, the standard will require the use of a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses, which may result in the earlier recognition of credit losses on financial instruments. This guidance will be effective for the Company beginning with the year ended July 31, 2024, with early adoption permitted. The Company is currently evaluating the impact this standard could have on the Condensed Consolidated Financial Statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) , and further issued subsequent amendments to the initial guidance. In order to ease the potential burden in accounting for reference rate reform, ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference the LIBOR or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. ASU 2020-04 applies only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued. The standard is effective immediately and may be applied prospectively through December 31, 2022. The Company is currently evaluating the impact of reference rate reform and the optional expedients provided by this standard on its contracts. In May 2021, the FASB issued ASU No. 2021-04, Earnings per Share (Topic 260), Debt - Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock Compensation (Topic 718), and Derivatives and Hedging - Contracts in Entity's Own Entity (Subtopic 815-40)
Derivative instruments	The changes in estimated fair values of derivative instruments result from changes in interest rates and foreign currency exchange rates. Such changes serve to offset exposure in related business assets or liabilities. The Company is exposed to credit loss in the event of nonperformance by a counterparty. Certain of the Company's derivative instruments are subject to master netting agreements. In certain circumstances, this agreement allows the Company to net-settle amounts payable or receivable related to multiple derivative transactions with the same counterparty. The fair values of derivative instruments are presented on a gross basis, even when the derivative instruments are subject to master netting arrangements. Collateral is generally not required of the Company or of the counterparties to the master netting agreements
Fair value measurements	The Company applies a fair value hierarchy pursuant to ASC 820, Fair Value Measurement, which consists of three levels of inputs that may be used to measure fair value: Level 1 Inputs to fair value are quoted prices in active markets for identical assets or liabilities; Level 2 Inputs to fair value are based on observable data other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data such as interest rates or yield curves for substantially the full term of the instrument; Level 3 Inputs to fair value are based on unobservable data for the instrument and are supported by little or no market activity.

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Oct. 31, 2021
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table presents the percentages of consolidated net sales disaggregated by sales channels: Three months ended October 31, 2021 2020 Wholesale - distributors 68.5 % 73.1 % Wholesale - California direct to retail (a) 16.4 14.3 DTC (b) 15.1 12.6 Net sales 100.0 % 100.0 % ________________________________________________ (a) Includes $1.8 million of sales related to bulk, grape and merchandise sales for the three months ended October 31, 2021 these same sales were immaterial for the three months ended October 31, 2020. (b) Includes shipping and handling revenue of $0.6 million and $0.4 million for the three months ended October 31, 2021 and 2020, respectively.

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Oct. 31, 2021
Inventory Disclosure [Abstract]
Schedule of Inventory, Current	Inventories were comprised of the following: (in thousands) October 31, July 31 Finished goods Bottled wine $ 111,960 $ 120,876 Merchandise 478 547 Work in progress Bulk wine 176,680 130,693 Packaging 3,107 3,541 Overhead 11,289 613 Raw materials Deferred crop costs 15,710 11,467 Total $ 319,224 $ 267,737

Property and equipment (Tables)

Property and equipment (Tables)	3 Months Ended
	Oct. 31, 2021
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and equipment was comprised of the following major components as of: (in thousands) October 31, July 31, Land $ 120,063 $ 120,063 Buildings and improvements 68,638 68,616 Vineyards and improvements 29,164 29,164 Machinery and equipment 50,711 49,607 Barrels 24,654 26,349 Total depreciable property and equipment 293,230 293,799 Less: accumulated depreciation and amortization (59,667) (58,542) Total depreciable property and equipment, net 233,563 235,257 Construction in progress 10,834 5,682 Property and equipment, net $ 244,397 $ 240,939

Other intangible assets (Tables

Other intangible assets (Tables)	3 Months Ended
	Oct. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets	Intangible assets were comprised of the following components: October 31, 2021 (in thousands) Gross carrying amount Accumulated amortization Net Definite-lived intangible assets Customer relationships $ 92,720 $ 36,164 $ 56,556 Leasehold interests 1,572 402 1,170 Total definite-lived intangible assets 94,292 36,566 57,726 Indefinite-lived intangible assets Trade names 139,600 — 139,600 Lane rights 1,300 — 1,300 Total indefinite-lived intangible assets 140,900 — 140,900 Total other intangible assets $ 235,192 $ 36,566 $ 198,626 July 31, 2021 (in thousands) Gross carrying amount Accumulated amortization Net Definite-lived intangible assets Customer relationships $ 92,720 $ 34,274 $ 58,446 Leasehold interests 1,572 371 1,201 Total definite-lived intangible assets 94,292 34,645 59,647 Indefinite-lived intangible assets Trade names 139,600 — 139,600 Lane rights 1,300 — 1,300 Total indefinite-lived intangible assets 140,900 — 140,900 Total other intangible assets $ 235,192 $ 34,645 $ 200,547
Schedule of Indefinite-Lived Intangible Assets	Intangible assets were comprised of the following components: October 31, 2021 (in thousands) Gross carrying amount Accumulated amortization Net Definite-lived intangible assets Customer relationships $ 92,720 $ 36,164 $ 56,556 Leasehold interests 1,572 402 1,170 Total definite-lived intangible assets 94,292 36,566 57,726 Indefinite-lived intangible assets Trade names 139,600 — 139,600 Lane rights 1,300 — 1,300 Total indefinite-lived intangible assets 140,900 — 140,900 Total other intangible assets $ 235,192 $ 36,566 $ 198,626 July 31, 2021 (in thousands) Gross carrying amount Accumulated amortization Net Definite-lived intangible assets Customer relationships $ 92,720 $ 34,274 $ 58,446 Leasehold interests 1,572 371 1,201 Total definite-lived intangible assets 94,292 34,645 59,647 Indefinite-lived intangible assets Trade names 139,600 — 139,600 Lane rights 1,300 — 1,300 Total indefinite-lived intangible assets 140,900 — 140,900 Total other intangible assets $ 235,192 $ 34,645 $ 200,547

Accrued expenses (Tables)

Accrued expenses (Tables)	3 Months Ended
	Oct. 31, 2021
Payables and Accruals [Abstract]
Schedule of Accounts Payable and Accrued Liabilities	The Company’s accrued expenses balance consisted of the following amounts: (in thousands) October 31, July 31, Trade spend (a) $ 15,920 $ 10,734 Bulk wine and other received not invoiced 15,571 1,526 Barrel purchase 998 936 Deferred compensation liability (b) 2,631 2,096 Income tax payable 3,921 — Accrued invoices and other accrued expenses 11,649 6,265 Total $ 50,690 $ 21,557 ________________________________________________ (a) Trade spend refers to estimated amounts the Company owes to distributors for depletion-based incentives granted for meeting specific depletion targets. (b) The Company intends to use the cash surrender value life insurance policies in settling its deferred compensation plan liability. The cash surrender value of the life insurance policies was $1.8 million and $1.7 million at October 31, 2021 and July 31, 2021, respectively.

Derivative instruments (Tables)

Derivative instruments (Tables)	3 Months Ended
	Oct. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Interest Rate Derivatives	As of October 31, 2021, the Company held the following interest rate swap agreements, which fixed the interest rate on the applicable notional amount of outstanding variable rate debt: Notional amount (in thousands) Interest rate Effective date Expiration date $100,000 0.487% March 21, 2020 March 23, 2023
Schedule of Derivative Instruments	The total notional amounts of the Company’s derivative instruments outstanding are as follows: (in thousands) October 31, July 31, Derivative instruments not designated as hedging instruments Interest rate swap contracts $ 100,000 $ 100,000 Foreign currency forward contracts — 2,369 Total derivative instruments not designated as hedging instruments $ 100,000 $ 102,369
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value	The estimated fair value and classification of derivative instruments on the accompanying Condensed Consolidated Statements of Financial Position are as follows: (in thousands) October 31, July 31, Derivative instruments not designated as hedging instruments Classification Interest rate swap contracts Derivative instrument Other long-term liabilities $ (34) $ (480) Foreign currency forward contracts Derivative instrument Other current assets $ — $ 5
Derivative Instruments, Gain (Loss)	The amounts and classification of the gains and losses in the Condensed Consolidated Statements of Operations related to derivative instruments not designated as hedging instruments are as follows: Three months ended October 31, (in thousands) Classification 2021 2020 Interest rate swap contracts Other (income) expense, net $ (446) $ (1,666) Foreign currency forward contracts Other (income) expense, net 4 118 Total gains $ (442) $ (1,548)

Fair value measurements (Tables

Fair value measurements (Tables)	3 Months Ended
	Oct. 31, 2021
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The Company’s assets and liabilities measured and recorded at fair value on a recurring basis at October 31, 2021, were as follows: (in thousands) Fair value measurements using: Quoted prices in active markets (Level 1) Significant other observable inputs Significant unobservable inputs Total Assets Deferred compensation plan asset $ — $ 1,764 $ — $ 1,764 Liabilities Interest rate swap contracts $ — $ 34 $ — $ 34 Deferred compensation liability — 2,631 — 2,631 The Company’s assets and liabilities measured and recorded at fair value on a recurring basis at July 31, 2021, were as follows: (in thousands) Fair value measurements using: Quoted prices in active markets (Level 1) Significant other observable inputs Significant unobservable inputs Total Assets Foreign currency forward contracts $ — $ 5 $ — $ 5 Deferred compensation plan asset — 1,719 — 1,719 Liabilities Interest rate swap contracts $ — $ 480 $ — $ 480 Deferred compensation liability — 2,096 — 2,096

Commitments and contingencies (

Commitments and contingencies (Tables)	3 Months Ended
	Oct. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases	At October 31, 2021, the future minimum payments under the non-cancelable operating lease agreements by fiscal year are as follows: (in thousands) Remaining portion of 2022 $ 4,122 2023 4,124 2024 4,082 2025 3,962 2026 2,637 Thereafter (collectively) 10,069 Total $ 28,996

Earnings per share (Tables)

Earnings per share (Tables)	3 Months Ended
	Oct. 31, 2021
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic, by Common Class, Including Two Class Method	The following is a reconciliation of the Company's basic and diluted income per share calculation: Three months ended October 31, (in thousands, except share and per share amounts) 2021 2020 Numerator - Net income attributable to The Duckhorn Portfolio, Inc. $ 21,273 $ 17,523 Denominator: Weighted average number of shares of common stock outstanding - basic 115,046,793 101,713,460 Dilutive stock options and restricted stock (a) 349,233 — Weighted average number of shares of common stock outstanding - assuming dilution 115,396,026 101,713,460 Earnings per share attributable to The Duckhorn Portfolio, Inc. Basic $ 0.18 $ 0.17 Diluted $ 0.18 $ 0.17 ________________________________________________ (a) Calculated using the treasury stock method.

Description of business (Detail

Description of business (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended
	Nov. 30, 2021	Oct. 31, 2021	Jul. 31, 2021
Secondary Offering
Subsidiary, Sale of Stock [Line Items]
Sale of stock, number of shares issued in transaction		12,000,000
Sale of stock, price per share (in dollars per share)		$ 20.50
Sale of stock, transaction costs		$ 0.9	$ 0.4
Secondary Offering - Greenshoe | Subsequent Event
Subsidiary, Sale of Stock [Line Items]
Sale of stock, number of shares issued in transaction	626,467

Basis of presentation and sig_3

Basis of presentation and significant accounting policies (Details) - USD ($) $ / shares in Units, $ in Millions	Oct. 31, 2021	Jul. 31, 2021
Accounting Policies [Line Items]
Preferred stock, shares authorized (shares)	100,000,000
Preferred stock, par or stated value per share (in dollars per share)	$ 0.01
Preferred stock, shares outstanding (shares)	0
Preferred stock, shares issued (shares)	0
Variable interest entity, net assets	$ 2.4	$ 2.2
Variable Interest Entity, Primary Beneficiary
Accounting Policies [Line Items]
Variable interest entity, ownership percentage	76.20%	76.20%

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenue (Details) $ in Thousands	3 Months Ended
	Oct. 31, 2021USD ($)	Oct. 31, 2020USD ($)
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, percent	1	1
Revenue	$ 104,181	$ 91,638
Wholesale - Distributors
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, percent	0.685	0.731
Wholesale - California direct to retail
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, percent	0.164	0.143
DTC
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, percent	0.151	0.126
Bulk, Grape and Merchandise Sales
Disaggregation of Revenue [Line Items]
Revenue	$ 1,800	$ 0
Shipping and Handling
Disaggregation of Revenue [Line Items]
Revenue	$ 600	$ 400

Revenue - Narrative (Details)

Revenue - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2021	Jul. 31, 2021
Revenue from Contract with Customer [Abstract]
Deferred revenue	$ 3,933	$ 3,102
Revenue recognized	$ 2,000

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Oct. 31, 2021	Jul. 31, 2021
Inventory [Line Items]
Inventories	$ 319,224	$ 267,737
Bottled wine
Inventory [Line Items]
Finished goods	111,960	120,876
Merchandise
Inventory [Line Items]
Finished goods	478	547
Bulk wine
Inventory [Line Items]
Work in progress	176,680	130,693
Packaging
Inventory [Line Items]
Work in progress	3,107	3,541
Overhead
Inventory [Line Items]
Work in progress	11,289	613
Deferred crop costs
Inventory [Line Items]
Raw materials	$ 15,710	$ 11,467

Inventories - Narrative (Detail

Inventories - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Oct. 31, 2021	Jul. 31, 2021
Inventory Disclosure [Abstract]
Inventory, capitalized costs incurred	$ 2.6	$ 12.5

Property and equipment - Schedu

Property and equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Oct. 31, 2021	Jul. 31, 2021
Property, Plant and Equipment [Line Items]
Less: accumulated depreciation and amortization	$ (59,667)	$ (58,542)
Property and equipment, net	244,397	240,939
Depreciable Property, Plant and Equipment
Property, Plant and Equipment [Line Items]
Total depreciable property and equipment	293,230	293,799
Property and equipment, net	233,563	235,257
Land
Property, Plant and Equipment [Line Items]
Total depreciable property and equipment	120,063	120,063
Buildings and improvements
Property, Plant and Equipment [Line Items]
Total depreciable property and equipment	68,638	68,616
Vineyards and improvements
Property, Plant and Equipment [Line Items]
Total depreciable property and equipment	29,164	29,164
Machinery and equipment
Property, Plant and Equipment [Line Items]
Total depreciable property and equipment	50,711	49,607
Barrels
Property, Plant and Equipment [Line Items]
Total depreciable property and equipment	24,654	26,349
Construction in Progress
Property, Plant and Equipment [Line Items]
Total depreciable property and equipment	$ 10,834	$ 5,682

Property and equipment - Narrat

Property and equipment - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Oct. 31, 2021	Oct. 31, 2020
Property, Plant and Equipment [Abstract]
Depreciation	$ 0.3	$ 0.3

Other intangible assets - Sched

Other intangible assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Oct. 31, 2021	Jul. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 94,292	$ 94,292
Accumulated amortization	36,566	34,645
Net	57,726	59,647
Indefinite-lived Intangible Assets [Line Items]
Gross carrying amount	140,900	140,900
Indefinite-lived Intangible Assets (Excluding Goodwill), Total	140,900	140,900
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Gross carrying amount	235,192	235,192
Net	198,626	200,547
Trade names
Indefinite-lived Intangible Assets [Line Items]
Gross carrying amount	139,600	139,600
Indefinite-lived Intangible Assets (Excluding Goodwill), Total	139,600	139,600
Lane rights
Indefinite-lived Intangible Assets [Line Items]
Gross carrying amount	1,300	1,300
Indefinite-lived Intangible Assets (Excluding Goodwill), Total	1,300	1,300
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	92,720	92,720
Accumulated amortization	36,164	34,274
Net	56,556	58,446
Leasehold interests
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	1,572	1,572
Accumulated amortization	402	371
Net	$ 1,170	$ 1,201

Other intangible assets - Narra

Other intangible assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Oct. 31, 2021	Oct. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 1.9	$ 1.9
Finite-lived intangible asset, expected amortization, year one	7.7
Finite-lived intangible asset, expected amortization, year two	7.7
Finite-lived intangible asset, expected amortization, year three	7.7
Finite-lived intangible asset, expected amortization, year four	7.7
Finite-lived intangible asset, expected amortization, year five	$ 7.7

Accrued expenses - Schedule of

Accrued expenses - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Oct. 31, 2021	Jul. 31, 2021
Payables and Accruals [Abstract]
Trade spend	$ 15,920	$ 10,734
Bulk wine and other received not invoiced	15,571	1,526
Barrel purchase	998	936
Deferred compensation liability	2,631	2,096
Income tax payable	3,921	0
Accrued invoices and other accrued expenses	11,649	6,265
Accrued expenses	50,690	21,557
Cash surrender value of life insurance	$ 1,800	$ 1,700

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($)	3 Months Ended
	Oct. 31, 2021	Oct. 31, 2020
Debt Instrument [Line Items]
Amortization of debt issuance costs	$ 402,000	$ 436,000
Revolving Credit Facility
Debt Instrument [Line Items]
Current borrowing capacity	314,000,000
Additional borrowing capacity	$ 30,000,000
Weighted average interest rate (percent)	2.00%
Letter of Credit
Debt Instrument [Line Items]
Long term line of credit	$ 0
Swingline Sub-Facility
Debt Instrument [Line Items]
Long term line of credit	$ 0

Derivative instruments - Intere

Derivative instruments - Interest Rate Swaps (Details) - Interest Rate Swap Two $ in Thousands	Oct. 31, 2021USD ($)
Derivative [Line Items]
Notional amount	$ 100,000
Interest rate	0.487%

Derivative instruments - Total

Derivative instruments - Total Notional Amount (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands	Oct. 31, 2021	Jul. 31, 2021
Derivative [Line Items]
Notional amount	$ 100,000	$ 102,369
Interest rate swap contracts
Derivative [Line Items]
Notional amount	100,000	100,000
Foreign currency forward contracts
Derivative [Line Items]
Notional amount	$ 0	$ 2,369

Derivative instruments - Estima

Derivative instruments - Estimated Fair Value and Classification of Derivative Instruments on the Condensed Consolidated Statements of Financial Position (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands	Oct. 31, 2021	Jul. 31, 2021
Other Noncurrent Liabilities | Interest rate swap contracts
Derivatives, Fair Value [Line Items]
Derivative liability	$ (34)	$ (480)
Other Current Assets | Foreign currency forward contracts
Derivatives, Fair Value [Line Items]
Derivative asset	$ 0	$ 5

Derivative instruments - Amount

Derivative instruments - Amounts and Classification of the Gains and Losses in the Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2021	Oct. 31, 2020
Derivative [Line Items]
Total gains	$ 442	$ 1,548
Not Designated as Hedging Instrument
Derivative [Line Items]
Total gains	(442)	(1,548)
Interest rate swap contracts | Not Designated as Hedging Instrument | Other (income) expense, net
Derivative [Line Items]
Total gains	(446)	(1,666)
Foreign currency forward contracts | Not Designated as Hedging Instrument | Other (income) expense, net
Derivative [Line Items]
Total gains	$ 4	$ 118

Fair value measurements - Asset

Fair value measurements - Assets and Liabilities Measured on a Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Oct. 31, 2021	Jul. 31, 2021
Assets
Deferred compensation plan asset	$ 1,764	$ 1,719
Liabilities
Deferred compensation liability	2,631	2,096
Foreign currency forward contracts
Assets
Foreign currency forward contracts		5
Interest rate swap contracts
Liabilities
Interest rate swap contracts	34	480
Quoted prices in active markets (Level 1)
Assets
Deferred compensation plan asset	0	0
Liabilities
Deferred compensation liability	0	0
Quoted prices in active markets (Level 1) | Foreign currency forward contracts
Assets
Foreign currency forward contracts		0
Quoted prices in active markets (Level 1) | Interest rate swap contracts
Liabilities
Interest rate swap contracts	0	0
Significant other observable inputs (Level 2)
Assets
Deferred compensation plan asset	1,764	1,719
Liabilities
Deferred compensation liability	2,631	2,096
Significant other observable inputs (Level 2) | Foreign currency forward contracts
Assets
Foreign currency forward contracts		5
Significant other observable inputs (Level 2) | Interest rate swap contracts
Liabilities
Interest rate swap contracts	34	480
Significant unobservable inputs (Level 3)
Assets
Deferred compensation plan asset	0	0
Liabilities
Deferred compensation liability	0	0
Significant unobservable inputs (Level 3) | Foreign currency forward contracts
Assets
Foreign currency forward contracts		0
Significant unobservable inputs (Level 3) | Interest rate swap contracts
Liabilities
Interest rate swap contracts	$ 0	$ 0

Commitments and contingencies -

Commitments and contingencies - Narrative (Details) T in Thousands, $ in Millions	3 Months Ended		12 Months Ended
	Oct. 31, 2021USD ($)a	Oct. 31, 2020USD ($)	Oct. 31, 2021USD ($)aT	Oct. 31, 2020USD ($)T
Commitments and Contingencies [Line Items]
Area of property (acre) | a	150		150
Operating lease, rent expense	$ 1	$ 1.1
Long-term purchase contract, amount purchased, mass | T			34	12
Inventories
Commitments and Contingencies [Line Items]
Long-term purchase commitment, amount purchased, cost			$ 68.1	$ 26.5
Minimum
Commitments and Contingencies [Line Items]
Lease, term of contract	1 year
Long-term purchase contract, period	1 year
Maximum
Commitments and Contingencies [Line Items]
Lease, term of contract	30 years
Long-term purchase contract, period	8 years

Commitments and contingencies_2

Commitments and contingencies - Future Minimum Payments for Operating Leases (Details) $ in Thousands	Oct. 31, 2021USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remaining portion of 2022	$ 4,122
2023	4,124
2024	4,082
2025	3,962
2026	2,637
Thereafter (collectively)	10,069
Total	$ 28,996

Equity-based compensation - Nar

Equity-based compensation - Narrative (Details) - 2016 Equity Incentive Plan - Restricted Stock $ / shares in Units, $ in Millions	Aug. 01, 2021USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in shares)	133,076
Vested (in dollars per share) | $ / shares	$ 14.23
Equity instruments other than options, vested, fair value | $	$ 1.9
Expected to vest ( in shares)	266,158

Earnings per share - Reconcilia

Earnings per share - Reconciliation of Basic and Diluted Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Oct. 31, 2021	Oct. 31, 2020
Earnings Per Share [Abstract]
Numerator - Net income attributable to The Duckhorn Portfolio, Inc.	$ 21,273	$ 17,523
Denominator:
Weighted average number of shares of common stock outstanding - basic (shares)	115,046,793	101,713,460
Dilutive stock options and restricted stock (shares)	349,233	0
Weighted average number of shares of common stock outstanding - assuming dilution (shares)	115,396,026	101,713,460
Earnings per share attributable to The Duckhorn Portfolio, Inc.
Basic (in dollars per share)	$ 0.18	$ 0.17
Diluted (in dollars per share)	$ 0.18	$ 0.17

Earnings per share - Narrative

Earnings per share - Narrative (Details) - shares	3 Months Ended
	Oct. 31, 2021	Oct. 31, 2020
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share (shares)	2,925	0