The Duckhorn Portfolio, Inc. (NAPA) 10-Q 7 Dec 22 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Oct. 31, 2022	Nov. 30, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Oct. 31, 2022
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	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		115,184,193
Amendment Flag	false
Entity Central Index Key	0001835256
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--07-31

Condensed Consolidated Statemen

Condensed Consolidated Statements of Financial Position (unaudited) - USD ($) $ in Thousands	Oct. 31, 2022	Jul. 31, 2022
Current assets
Cash	$ 5,325	$ 3,167
Accounts receivable trade, net	69,645	37,026
Inventories	341,926	285,430
Prepaid expenses and other current assets	14,027	13,898
Total current assets	430,923	339,521
Long-term assets
Property and equipment, net	274,324	269,659
Operating lease right-of-use assets	22,478	23,375
Intangible assets, net	189,896	191,786
Goodwill	425,209	425,209
Other long-term assets	1,842	1,963
Total long-term assets	913,749	911,992
Total assets	1,344,672	1,251,513
Current liabilities
Accounts payable	45,889	3,382
Accrued expenses	69,538	29,475
Accrued compensation	9,160	12,893
Deferred revenue	12,069	272
Current operating lease liabilities	3,506	3,498
Current maturities of long-term debt	9,109	9,810
Other current liabilities	474	672
Total current liabilities	149,745	60,002
Long-term liabilities
Revolving line of credit, net	94,005	108,674
Long-term debt, net of current maturities and debt issuance costs	103,036	105,074
Operating lease liabilities	18,864	19,732
Deferred income taxes	90,484	90,483
Other long-term liabilities	388	387
Total long-term liabilities	306,777	324,350
Total liabilities	456,522	384,352
Commitments and contingencies (Note 10)
Equity
Common stock, $0.01 par value; 500,000,000 shares authorized, 115,184,161 issued and outstanding at October 31, 2022 and July 31, 2022	1,152	1,152
Additional paid-in capital	732,777	731,597
Retained earnings	153,639	133,824
Total The Duckhorn Portfolio, Inc. equity	887,568	866,573
Non-controlling interest	582	588
Total equity	888,150	867,161
Total liabilities and equity	$ 1,344,672	$ 1,251,513
Common stock, shares issued (in shares)	115,184,161	115,184,161
Common stock, shares outstanding (in shares)	115,184,161	115,184,161

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Financial Position (unaudited) (Parenthetical) - $ / shares	Oct. 31, 2022	Jul. 31, 2022
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	115,184,161	115,184,161
Common stock, shares outstanding (in shares)	115,184,161	115,184,161

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Operations (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2022	Oct. 31, 2021
Income Statement [Abstract]
Net sales (net of excise taxes of $1,584 and $1,476, respectively)	$ 108,171	$ 104,181
Cost of sales	53,461	51,771
Gross profit	54,710	52,410
Selling, general and administrative expenses	25,739	23,207
Income from operations	28,971	29,203
Interest expense	2,162	1,606
Other income, net	(87)	(1,093)
Total other expenses	2,075	513
Income before income taxes	26,896	28,690
Income tax expense	7,087	7,377
Net income	19,809	21,313
Less: Net (income) loss attributable to non-controlling interest	6	(40)
Net income attributable to The Duckhorn Portfolio, Inc.	$ 19,815	$ 21,273
Net income per share of common stock:
Basic (in dollars per share)	$ 0.17	$ 0.18
Diluted (in dollars per share)	$ 0.17	$ 0.18
Weighted average shares of common stock outstanding:
Basic (in shares)	115,184,161	115,046,793
Diluted (in shares)	115,275,692	115,396,026

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Operations (unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2022	Oct. 31, 2021
Income Statement [Abstract]
Excise taxes	$ 1,584	$ 1,476

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Changes in Equity (unaudited) - USD ($) $ in Thousands	Total	Total The Duckhorn Portfolio, Inc. equity	Common stock	Additional paid-in capital	Retained earnings	Non-controlling interest
Beginning balance (in shares) 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 (Note 11)	1,459	1,459		1,459
Ending balance (in shares) at Oct. 31, 2021			115,046,793
Ending balance at Oct. 31, 2021	$ 825,010	824,419	$ 1,150	728,362	94,907	591
Beginning balance (in shares) at Jul. 31, 2022	115,184,161		115,184,161
Beginning balance at Jul. 31, 2022	$ 867,161	866,573	$ 1,152	731,597	133,824	588
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	19,809	19,815			19,815	(6)
Equity-based compensation (Note 11)	$ 1,180	1,180		1,180
Ending balance (in shares) at Oct. 31, 2022	115,184,161		115,184,161
Ending balance at Oct. 31, 2022	$ 888,150	$ 887,568	$ 1,152	$ 732,777	$ 153,639	$ 582

Condensed Consolidated Statem_6

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2022	Oct. 31, 2021
Cash flows from operating activities
Net income	$ 19,809	$ 21,313
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	5,757	4,829
Gain on disposal of assets	(32)	(46)
Change in fair value of derivatives	(368)	(442)
Amortization of debt issuance costs	402	402
Equity-based compensation	1,180	1,459
Change in operating assets and liabilities:
Accounts receivable trade, net	(32,619)	(26,365)
Inventories	(55,626)	(50,686)
Prepaid expenses and other current assets	442	470
Other long-term assets	122	(59)
Accounts payable	42,670	48,755
Accrued expenses	37,262	29,177
Accrued compensation	(3,733)	(6,090)
Deferred revenue	11,797	830
Other current and long-term liabilities	(679)	(800)
Net cash provided by operating activities	26,384	22,747
Cash flows from investing activities
Purchases of property and equipment, net of sales proceeds	(6,418)	(5,896)
Net cash used in investing activities	(6,418)	(5,896)
Cash flows from financing activities
Payments under line of credit	(20,000)	(28,000)
Borrowings under line of credit	5,000	15,000
Payments of long-term debt	(2,808)	(2,848)
Net cash used in financing activities	(17,808)	(15,848)
Net increase in cash	2,158	1,003
Cash - Beginning of year	3,167	4,244
Cash - End of year	5,325	5,247
Supplemental cash-flow information
Interest paid, net of amount capitalized	1,777	1,218
Non-cash investing activities
Property and equipment additions in accounts payable and accrued expenses	$ 3,776	$ 1,793

Description of business

Description of business	3 Months Ended
	Oct. 31, 2022
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, Decoy, Goldeneye, Paraduxx, Migration, 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; San Luis Obispo, California; Sebastopol, California; and Walla Walla, Washington. Fiscal year The Company's fiscal year ends on July 31. Secondary offering

Basis of presentation and recen

Basis of presentation and recent accounting pronouncements	3 Months Ended
	Oct. 31, 2022
Accounting Policies [Abstract]
Basis of presentation and recent accounting pronouncements	Basis of presentation and recent accounting pronouncements 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. 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, 2023 for any other interim period or for any future year. The July 31, 2022 Condensed Consolidated Statement of Financial Position data contained in this Form 10-Q was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of U.S. GAAP. 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, 2022. 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 credit losses, calculation of accrued liabilities, customer incentive reserves, uncertain tax positions, contingent liabilities, 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, 2022 and July 31, 2022, the Company's ownership percentage of the sole identified VIE was 76.2%. The total net assets of the VIE included on the Condensed Consolidated Statement of Financial Position was $2.3 million and $2.4 million at October 31, 2022 and July 31, 2022, 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 owed by or to the Company for goods under current contracts. Recently adopted accounting pronouncements In March 2020, the Financial Accounting Standards Board 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 U.S. 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 adopted the standard effective August 1, 2022, the first day of fiscal year 2023. Effective August 30, 2022, the Company executed Amendment No. 8 to the Original First Lien Loan Agreement. The amendment transitioned the outstanding debt from a LIBOR-based interest rate to a Term SOFR based interest rate. The Amendment contemporaneously extended the maturity date of all facilities to November 1, 2023. The Company determined that the extension of the maturity date is a change to terms unrelated to replacement of a reference rate as contemplated by the guidance in ASU 2020-04. Accordingly, the Company is not eligible to elect the optional expedients under ASU 2020-04 for the contract modifications related to Amendment No. 8. Effective September 1, 2022, the Company amended its interest rate swap agreement. The amendment transitioned the LIBOR-based floating rate to a Term SOFR based floating rate. The modification of the agreement qualified for certain of the optional expedients under ASU 2020-04. The election of certain expedients did not have a material impact on the Condensed Consolidated Financial Statements during the three months ended October 31, 2022. As previously disclosed in the Annual Report on Form 10-K for the year ended July 31, 2022, the Company adopted ASU No. 2016-02, Leases (Topic ASC 842) using the modified retrospective transition method as of the first day of Fiscal 2022. The impact of the adoption of ASC 842 on previously reported interim financial statements during the year ended July 31, 2022, included the recognition of right-of-use ("ROU") assets and lease liabilities for operating leases. The adoption of ASC 842 also resulted in reclassifying certain lines within operating activities in the Condensed Consolidated Statement of Cash Flows due to changes in operating assets and liabilities for the related accounts. These changes to previously disclosed amounts conform to the current period presentation. No other new accounting pronouncements issued or effective as of October 31, 2022 have had, or are expected to have, a material impact on the Condensed Consolidated Financial Statements.

Revenue

Revenue	3 Months Ended
	Oct. 31, 2022
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, 2022 2021 Wholesale - Distributors 76.4 % 68.5 % Wholesale - California direct to trade (a) 15.8 16.4 DTC (b) 7.8 15.1 Net sales 100.0 % 100.0 % ________________________________________________ (a) Includes $0.6 million and $2.3 million of sales related to bulk, grape and merchandise sales for the three months ended October 31, 2022 and 2021, respectively. (b) Includes shipping and handling revenue of $0.1 million and $0.6 million for the three months ended October 31, 2022 and 2021, respectively. Charges related to credit loss on accounts receivable were immaterial for the three months ended October 31, 2022. Recoveries and reductions in the allowance for credit loss were $0.4 million in the three months ended October 31, 2021. As of October 31, 2022 and July 31, 2022, the allowance for credit losses was $0.4 million. Contract balances When the Company receives payment from a customer, prior to meeting the performance obligation 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 wines sold through our DTC channels, 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. Deferred revenue was $12.1 million and $0.3 million at October 31, 2022 and July 31, 2022, respectively, included in deferred revenue in the Condensed Consolidated Statement of Financial Position. In the three months ended October 31, 2022, the Company recognized revenue of $0.2 million which was included in the opening contract liability balance for the corresponding period.

Inventories

Inventories	3 Months Ended
	Oct. 31, 2022
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories were comprised of the following: (in thousands) October 31, July 31, Finished goods $ 104,764 $ 108,989 Work in progress 217,795 162,337 Raw materials 19,367 14,104 Total $ 341,926 $ 285,430 Inventories are stated at the lower of cost or net realizable value, and are primarily measured on a first-in-first-out basis. The Company records valuation adjustments to the carrying value of its inventories based on periodic reviews of slow-moving, obsolete and excess inventory to determine the need for reserves by comparing inventory carrying values with their net realizable values upon ultimate sale or disposal. The Company's estimates of net realizable value are based on historical experience as well as Management's judgments with respect to future market conditions. In the period the Company determines a reserve is required, the Company recognizes a charge to cost of sales for the excess of the carrying value over net realizable value. The inventory reserve was $4.6 million and $5.1 million at October 31, 2022 and July 31, 2022, respectively. The Company capitalizes into inventory depreciation related to property and equipment used in the production of inventory. For the three months ended October 31, 2022 and 2021, the amount capitalized was $3.5 million and $2.6 million, respectively. The Company also capitalizes total lease costs related to leases used in the production of inventory. For the three months ended October 31, 2022 and 2021, the amount capitalized was $1.1 million and $1.1 million, respectively.

Property and equipment, net

Property and equipment, net	3 Months Ended
	Oct. 31, 2022
Property, Plant and Equipment [Abstract]
Property and equipment, net	Property and equipment, net Property and equipment, net was comprised of the following: (in thousands) October 31, July 31, Land $ 136,328 $ 136,328 Buildings and improvements 70,847 70,813 Machinery and equipment 53,096 52,619 Vineyards and improvements 44,759 44,759 Barrels 29,817 30,067 Total depreciable property and equipment 334,847 334,586 Less: accumulated depreciation and amortization (74,204) (70,591) Total depreciable property and equipment, net 260,643 263,995 Construction in progress 13,681 5,664 Property and equipment, net $ 274,324 $ 269,659 Depreciation expense recognized in selling, general and administrative expenses was $0.4 million and $0.3 million for the three months ended October 31, 2022 and 2021, respectively. See Note 4 (Inventories) for depreciation expense capitalized into inventory.

Accrued expenses

Accrued expenses	3 Months Ended
	Oct. 31, 2022
Payables and Accruals [Abstract]
Accrued expenses	Accrued expenses Accrued expenses were comprised of the following: (in thousands) October 31, July 31, Bulk wine and other received not invoiced $ 26,603 $ 143 Trade spend (a) 18,452 15,319 Income taxes payable 7,103 387 Barrel purchase 3,283 988 Deferred compensation liability (b) 2,561 2,142 Accrued professional fees 1,072 3,191 Accrued invoices and other accrued expenses 10,464 7,305 Total $ 69,538 $ 29,475 _______________________________________________ (a) Trade spend refers to estimated amounts the Company owes to distributors for depletion-based incentives 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 $1.6 million and $1.8 million at October 31, 2022 and July 31, 2022, respectively.

Debt

Debt	3 Months Ended
	Oct. 31, 2022
Debt Disclosure [Abstract]
Debt	Debt As of October 31, 2022, outstanding principal balances under the Original Debt Facility were $95.0 million for the revolving line of credit, $4.1 million for the capital expenditure loan, $95.1 million for the term loan (tranche one) and $13.1 million for term loan (tranche two). At October 31, 2022, the Company had unused capacity of $330.0 million under the original revolving line of credit, excluding the incremental seasonal borrowing amount of an additional $30.0 million of capacity. The weighted-average interest rate was 1.8% on the amount outstanding at October 31, 2022. There were no amounts outstanding on the letter of credit sub-facility or the swingline sub-facility at October 31, 2022. Included in interest expense in the Condensed Consolidated Statements of Operations, and in depreciation and amortization on the Condensed Consolidated Statements of Cash Flows, is amortization related to debt issuance costs of $0.4 million for both the three months ended October 31, 2022 and 2021, respectively. 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 Original Credit Facility. As of October 31, 2022, the Company was not in violation of any financial covenant. Amendments to the Original First Lien Loan Agreement Effective August 30, 2022, Mallard Buyer Corp., Selway Wine Company and certain other subsidiaries of The Duckhorn Portfolio, Inc. (collectively, the “Borrowers”) entered into an eighth amendment to the Original First Lien Loan Agreement, to extend the maturity date of all facilities to November 1, 2023 and to transition from a LIBOR based interest rate to a Term SOFR based interest rate plus applicable margins defined by the terms of the Original Credit Facility. The transaction did not result in any additional cash proceeds. New Credit Agreement Effective November 4, 2022, the Borrowers entered into the New Credit Agreement which amends and restates, in its entirety, the Original Credit Agreement. The New Credit Agreement provides for $675.8 million in first lien senior secured credit facilities consisting of (i) a $425.0 million revolving credit facility, (ii) a $225.8 million term loan facility and (iii) a $25.0 million delayed draw term loan facility. The maturity date for loans borrowed under the New Credit Agreement is November 4, 2027. See Note 14 (Subsequent events) to our Condensed Consolidated Financial Statements for additional information. The Company does not anticipate the rate change to be material to its Condensed Consolidated Financial Statements.

Derivative instruments

Derivative instruments	3 Months Ended
	Oct. 31, 2022
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, 2022 or July 31, 2022. 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, 2022, 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 Interest rate Effective date Expiration date $100,000 0.315% September 30, 2022 March 23, 2023 As discussed in Note 10 (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 1,021 2,793 Total derivative instruments not designated as hedging instruments $ 101,021 $ 102,793 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 current assets $ 1,588 $ 1,443 Total interest rate swap contract assets $ 1,588 $ 1,443 Foreign currency forward contracts Derivative instrument Other current liabilities — 223 Total foreign currency contract liabilities $ — $ 223 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 2022 2021 Interest rate swap contracts Other income, net $ (145) $ (446) Foreign currency forward contracts Other income, net (223) 4 Total (gains) losses $ (368) $ (442)

Fair value measurements

Fair value measurements	3 Months Ended
	Oct. 31, 2022
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 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; and 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 (Level 2 of the fair value hierarchy). The Company’s assets and liabilities measured and recorded at fair value on a recurring basis at October 31, 2022, 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 Interest rate swap contracts $ — $ 1,588 $ — $ 1,588 Deferred compensation plan asset — 1,631 — 1,631 Liabilities Deferred compensation liability $ — $ 2,561 — $ 2,561 The Company’s assets and liabilities measured and recorded at fair value on a recurring basis at July 31, 2022, 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 Interest rate swap contracts $ — $ 1,443 $ — $ 1,443 Deferred compensation plan asset — 1,753 — 1,753 Liabilities Foreign currency forward contracts $ — $ 223 $ — $ 223 Deferred compensation liability — 2,142 — 2,142

Commitments and contingencies

Commitments and contingencies	3 Months Ended
	Oct. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and contingencies	Commitments and contingencies Long-term purchase contracts The Company has entered certain grape purchase contracts with various growers to supply a significant portion of its future grape requirements for wine production. The lengths of the contracts vary from one Purchase commitments The Company has ongoing commitments to purchase barrels for approximately $8.4 million, of which approximately $6.7 million will be paid in Euros. In order to reduce the foreign exchange risk associated with the Euro to U.S. Dollar conversion rate, the Company entered into foreign currency forward contracts aligning settlement dates with expected barrel delivery and the anticipated payments to various coopers. The Company does not enter into these contracts for speculative purposes. Gains and losses on these contracts are recorded in the Condensed Consolidated Statements of Operations. See Note 8 (Derivative instruments) for the total notional value and impact on the Condensed Consolidated Financial Statements due to foreign currency forward contracts. 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, 2022, 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 expects the risk of any future obligations under these indemnification provisions to be remote. As of October 31, 2022 and July 31, 2022, no amounts have been accrued related to such indemnification provisions.

Equity-based compensation

Equity-based compensation	3 Months Ended
	Oct. 31, 2022
Share-Based Payment Arrangement [Abstract]
Equity-based compensation	Equity-based compensation 2016 Equity Plan In 2016, the Company adopted the 2016 Equity Plan, which provided profit interest units to certain employees of the Company. In connection with the adoption of the Company's 2021 Equity Plan, the Company will no longer grant additional awards under the 2016 Plan. However, the terms and conditions of the 2016 Plan will continue to govern the previously granted awards, to the extent applicable. The remaining awards vested on August 1, 2022 and were fully expensed as of July 31, 2022. The total fair value of restricted shares that vested during the three months ended October 31, 2022 was $4.9 million. Restricted shares The following table represents restricted shares activity: Performance-based shares Weighted-average grant-date fair value Unvested as of July 31, 2022 266,158 $ 14.23 Granted — — Vested (266,158) 14.23 Forfeited — — Unvested as of October 31, 2022 — $ — 2021 Equity Incentive Plan In March 2021, the Company's Board of Directors approved the 2021 Plan, which provides for granting up to 14,003,560 shares of the Company's common stock to employees, officers, and founders. Restricted stock units and stock options are granted to certain employees of the Company, advisors and directors (collectively “grants”). The grants, are considered equity awards for purposes of calculating compensation expense, and are equity-classified in the Condensed Consolidated Statements of Financial Position. Stock options Stock option activity and activity regarding shares available for grant under the 2021 Plan is shown below: Number of options Weighted-average exercise price Weighted-average remaining contractual life Aggregate intrinsic value Outstanding at July 31, 2022 1,555,610 $ 17.15 8.7 $ 3,847 Granted 1,067,979 14.43 Exercised — — Forfeited (112,912) 17.00 Expired (4,549) 18.08 Outstanding at October 31, 2022 2,506,128 $ 16.00 9.0 $ 203 Exercisable as of October 31, 2022 374,309 $ 17.12 7.6 The Company recognized equity compensation expense related to the 2021 Plan stock options in selling, general and administrative expense and capitalized a portion into inventory, as applicable, due to units vesting over their requisite service periods. Total recognized equity compensation expense related to the 2021 Plan stock options was $0.5 million and $0.5 million for the three months ended October 31, 2022 and 2021, respectively. The total unrecognized compensation expense related to the 2021 Plan stock options was $10.3 million as of October 31, 2022, which is expected to be recognized over a weighted-average period of 3.2 years. The following assumptions were applied in the Black-Scholes option pricing model to estimate the grant-date fair value of the stock options granted in the three months ended October 31, 2022: Three months ended October 31, 2022 Expected term (in years) (a) 6.23 Expected dividend yield (b) — % Risk-free interest rate (c) 3.96 % Expected volatility (d) 33.9 % Stock price $ 14.43 ________________________________________________ (a) Calculated as the midpoint between the weighted-average time to vest and the time to expiration. (b) The Company has not historically paid and does not expect to pay dividends in the foreseeable future. (c) The risk-free rate was estimated from the U.S. Treasury Constant Maturity Rates for a period consistent with the expected term in effect at the grant date. (d) The expected volatility was estimated based on analysis of the historical and implied volatility of a group of guideline public companies deemed to be comparable public peers within the Company’s industry. Restricted stock units The following table represents the RSU grant activity under the 2021 Plan: Number of units Weighted-average grant-date fair value per share Unvested as of July 31, 2022 414,609 $ 17.32 Granted 355,993 14.43 Vested — — Forfeited (37,638) 17.00 Unvested as of October 31, 2022 732,964 $ 15.93 The Company recognized equity compensation expense related to the 2021 Plan RSUs in selling, general and administrative expense and capitalized a portion into inventory, as applicable, due to units vesting over their requisite service periods, of $0.7 million and $0.8 million, respectively, for the three months ended October 31, 2022 and 2021. The total unrecognized compensation expense related to the 2021 Plan RSUs was $10.0 million as of October 31, 2022, which is expected to be recognized over a weighted-average period of 3.1 years. Employee Stock Purchase Plan The Company adopted the 2021 Employee Stock Purchase Plan, which allows for the issuance of up to a total of 1,250,509 shares of the Company's common stock. An offering period under the Plan began on September 1, 2022 and will end on December 30, 2022. No purchases have been made under the ESPP for the three months ended October 31, 2022 or 2021. The fair value of ESPP shares is estimated at the date of grant using the Black-Scholes option pricing model. The following assumptions were applied in the model to estimate the grant-date fair value of the ESPP for the offering period that began on September 1, 2022. Three months ended October 31, 2022 Expected term (in years) (a) 0.33 Expected dividend yield (b) — Risk-free interest rate (c) 3.07 % Expected volatility (d) 41 % Stock price $ 18.38 ________________________________________________ (a) Calculated as the midpoint between the weighted average time to vest and the time to expiration. (b) The Company has not historically paid and does not expect to pay dividends in the foreseeable future. (c) The risk-free rate was estimated from the U.S. Treasury Constant Maturity Rates for a period consistent with the expected term in effect at the grant date. (d) The expected volatility was estimated based on analysis of the Company's historical and implied volatility, and considering a group of guideline public companies deemed to be comparable public peers within the Company’s industry.

Earnings per share

Earnings per share	3 Months Ended
	Oct. 31, 2022
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) 2022 2021 Numerator - Net income attributable to The Duckhorn Portfolio, Inc. $ 19,815 $ 21,273 Denominator: Weighted average number of shares outstanding for basic per share calculation 115,184,161 115,046,793 Effect of dilutive potential shares (a) : Stock options 11,976 167,269 Restricted stock awards 79,555 181,964 Adjusted weighted average shares outstanding for diluted per share calculation 115,275,692 115,396,026 Earnings per share attributable to The Duckhorn Portfolio, Inc. Basic $ 0.17 $ 0.18 Diluted $ 0.17 $ 0.18 Anti-dilutive shares: Stock options 60,022 2,925 Restricted stock awards 17,543 — _______________________________________ (a) Calculated using the treasury stock method.

Income taxes

Income taxes	3 Months Ended
	Oct. 31, 2022
Income Tax Disclosure [Abstract]
Income taxes	Income taxes Income tax expense was $7.1 million, with an effective tax rate of 26.3%, for the three months ended October 31, 2022, compared to $7.4 million, with an effective tax rate of 25.7% for the three months ended October 31, 2021. The effective tax rates for both periods presented were higher than the federal statutory rate of 21% primarily due to the impact of state income taxes.

Subsequent events

Subsequent events	3 Months Ended
	Oct. 31, 2022
Subsequent Events [Abstract]
Subsequent events	Subsequent events Effective November 4, 2022, the Borrowers entered into the New Credit Agreement which amends and restates, in its entirety, the Original Credit Agreement. The New Credit Agreement provides for $675.8 million in first lien senior secured credit facilities consisting of (i) a $425.0 million revolving credit facility, (ii) a $225.8 million term loan facility and (iii) a $25.0 million delayed draw term loan facility. The maturity date for loans borrowed under the New Credit Agreement is November 4, 2027. The term loan facility in the New Credit Agreement replaces the $135.0 million term loan tranche one facility, $25.0 million term loan tranche two facility and $25.0 million capital expenditure facility under the Original Credit Agreement. The New Credit Agreement allows the Borrowers, at any time, to request additional term loans, revolver commitments and delayed draw term loan commitments in an aggregate amount of up to $400.0 million (the “Incremental Facility”). The lenders are not under any obligation to provide the Incremental Facility, and the Incremental Facility is subject to certain customary conditions precedent and other limitations. Borrowings under the revolver portion of the New Credit Agreement generally bear interest based on the sum of Term SOFR plus a loan margin based on average availability as follows: (a) less than or equal to 33% of average availability, a loan margin of 1.50%, (b) greater than 33% and less than or equal to 66% of average availability, a loan margin of 1.25%, and (c) greater than 66% of average availability, a loan margin of 1.00%. Borrowings under the term loan and delayed draw portions of the New Credit Agreement generally bear interest based on the sum of (i) Term SOFR plus (ii) a credit spread adjustment of 10 basis points for 1-month and 3-month interest periods and 15 basis points for a six-month interest period plus (iii) a loan margin of 1.625%. The New Credit Agreement also includes an unused line fee, contains customary representations and warranties and affirmative and negative covenants for agreements of this type. In addition, the New Credit Agreement requires compliance with the following financial covenants, in each case commencing from fiscal quarter ending January 31, 2023: (i) a debt to capitalization ratio not to exceed 0.55:1.00, measured at the end of each fiscal quarter and (ii) a fixed charge coverage ratio not to be less than 1.15:1.00, measured at the end of each fiscal quarter. The Company's accounting assessment of the treatment of the amended and restated New Credit Agreement and related fees is ongoing, and is not expected to result in a material impact to the Company's financial statements for the three or six months ended January 31, 2023.

Basis of presentation and rec_2

Basis of presentation and recent accounting pronouncements (Policies)	3 Months Ended
	Oct. 31, 2022
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. 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, 2023 for any other interim period or for any future year. The July 31, 2022 Condensed Consolidated Statement of Financial Position data contained in this Form 10-Q was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of U.S. GAAP. 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, 2022.
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 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 credit losses, calculation of accrued liabilities, customer incentive reserves, uncertain tax positions, contingent liabilities, equity-based compensation and deferred revenues. Actual results could differ from those estimates.
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 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
Recently adopted accounting pronouncements	Recently adopted accounting pronouncements In March 2020, the Financial Accounting Standards Board 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 U.S. 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 adopted the standard effective August 1, 2022, the first day of fiscal year 2023. Effective August 30, 2022, the Company executed Amendment No. 8 to the Original First Lien Loan Agreement. The amendment transitioned the outstanding debt from a LIBOR-based interest rate to a Term SOFR based interest rate. The Amendment contemporaneously extended the maturity date of all facilities to November 1, 2023. The Company determined that the extension of the maturity date is a change to terms unrelated to replacement of a reference rate as contemplated by the guidance in ASU 2020-04. Accordingly, the Company is not eligible to elect the optional expedients under ASU 2020-04 for the contract modifications related to Amendment No. 8. Effective September 1, 2022, the Company amended its interest rate swap agreement. The amendment transitioned the LIBOR-based floating rate to a Term SOFR based floating rate. The modification of the agreement qualified for certain of the optional expedients under ASU 2020-04. The election of certain expedients did not have a material impact on the Condensed Consolidated Financial Statements during the three months ended October 31, 2022. As previously disclosed in the Annual Report on Form 10-K for the year ended July 31, 2022, the Company adopted ASU No. 2016-02, Leases (Topic ASC 842) using the modified retrospective transition method as of the first day of Fiscal 2022. The impact of the adoption of ASC 842 on previously reported interim financial statements during the year ended July 31, 2022, included the recognition of right-of-use ("ROU") assets and lease liabilities for operating leases. The adoption of ASC 842 also resulted in reclassifying certain lines within operating activities in the Condensed Consolidated Statement of Cash Flows due to changes in operating assets and liabilities for the related accounts. These changes to previously disclosed amounts conform to the current period presentation. No other new accounting pronouncements issued or effective as of October 31, 2022 have had, or are expected to have, a material impact on the Condensed Consolidated Financial Statements.
Contract balances	Contract balancesWhen the Company receives payment from a customer, prior to meeting the performance obligation 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 wines sold through our DTC channels, 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 are stated at the lower of cost or net realizable value, and are primarily measured on a first-in-first-out basis. The Company records valuation adjustments to the carrying value of its inventories based on periodic reviews of slow-moving, obsolete and excess inventory to determine the need for reserves by comparing inventory carrying values with their net realizable values upon ultimate sale or disposal. The Company's estimates of net realizable value are based on historical experience as well as Management's judgments with respect to future market conditions. In the period the Company determines a reserve is required, the Company recognizes a charge to cost of sales for the excess of the carrying value over net realizable value.
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, and no cash collateral was received or pledged under such agreements as of October 31, 2022 or July 31, 2022. 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.
Fair value measurements	The Company applies a fair value hierarchy pursuant to ASC 820, Fair Value Measurement , which consists of three levels of inputs 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; and 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 (Level 2 of the fair value hierarchy).

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Oct. 31, 2022
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, 2022 2021 Wholesale - Distributors 76.4 % 68.5 % Wholesale - California direct to trade (a) 15.8 16.4 DTC (b) 7.8 15.1 Net sales 100.0 % 100.0 % ________________________________________________ (a) Includes $0.6 million and $2.3 million of sales related to bulk, grape and merchandise sales for the three months ended October 31, 2022 and 2021, respectively. (b) Includes shipping and handling revenue of $0.1 million and $0.6 million for the three months ended October 31, 2022 and 2021, respectively.

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Oct. 31, 2022
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories were comprised of the following: (in thousands) October 31, July 31, Finished goods $ 104,764 $ 108,989 Work in progress 217,795 162,337 Raw materials 19,367 14,104 Total $ 341,926 $ 285,430

Property and equipment, net (Ta

Property and equipment, net (Tables)	3 Months Ended
	Oct. 31, 2022
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and equipment, net was comprised of the following: (in thousands) October 31, July 31, Land $ 136,328 $ 136,328 Buildings and improvements 70,847 70,813 Machinery and equipment 53,096 52,619 Vineyards and improvements 44,759 44,759 Barrels 29,817 30,067 Total depreciable property and equipment 334,847 334,586 Less: accumulated depreciation and amortization (74,204) (70,591) Total depreciable property and equipment, net 260,643 263,995 Construction in progress 13,681 5,664 Property and equipment, net $ 274,324 $ 269,659

Accrued expenses (Tables)

Accrued expenses (Tables)	3 Months Ended
	Oct. 31, 2022
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued expenses were comprised of the following: (in thousands) October 31, July 31, Bulk wine and other received not invoiced $ 26,603 $ 143 Trade spend (a) 18,452 15,319 Income taxes payable 7,103 387 Barrel purchase 3,283 988 Deferred compensation liability (b) 2,561 2,142 Accrued professional fees 1,072 3,191 Accrued invoices and other accrued expenses 10,464 7,305 Total $ 69,538 $ 29,475 _______________________________________________ (a) Trade spend refers to estimated amounts the Company owes to distributors for depletion-based incentives 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 $1.6 million and $1.8 million at October 31, 2022 and July 31, 2022, respectively.

Derivative instruments (Tables)

Derivative instruments (Tables)	3 Months Ended
	Oct. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Interest Rate Derivatives	As of October 31, 2022, 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 Interest rate Effective date Expiration date $100,000 0.315% September 30, 2022 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 1,021 2,793 Total derivative instruments not designated as hedging instruments $ 101,021 $ 102,793
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 current assets $ 1,588 $ 1,443 Total interest rate swap contract assets $ 1,588 $ 1,443 Foreign currency forward contracts Derivative instrument Other current liabilities — 223 Total foreign currency contract liabilities $ — $ 223
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 2022 2021 Interest rate swap contracts Other income, net $ (145) $ (446) Foreign currency forward contracts Other income, net (223) 4 Total (gains) losses $ (368) $ (442)

Fair value measurements (Tables

Fair value measurements (Tables)	3 Months Ended
	Oct. 31, 2022
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, 2022, 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 Interest rate swap contracts $ — $ 1,588 $ — $ 1,588 Deferred compensation plan asset — 1,631 — 1,631 Liabilities Deferred compensation liability $ — $ 2,561 — $ 2,561 The Company’s assets and liabilities measured and recorded at fair value on a recurring basis at July 31, 2022, 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 Interest rate swap contracts $ — $ 1,443 $ — $ 1,443 Deferred compensation plan asset — 1,753 — 1,753 Liabilities Foreign currency forward contracts $ — $ 223 $ — $ 223 Deferred compensation liability — 2,142 — 2,142

Equity-based compensation (Tabl

Equity-based compensation (Tables)	3 Months Ended
	Oct. 31, 2022
Share-Based Payment Arrangement [Abstract]
Schedule of Restricted Shares Activity	The following table represents restricted shares activity: Performance-based shares Weighted-average grant-date fair value Unvested as of July 31, 2022 266,158 $ 14.23 Granted — — Vested (266,158) 14.23 Forfeited — — Unvested as of October 31, 2022 — $ —
Share-based Payment Arrangement, Option, Activity	Stock option activity and activity regarding shares available for grant under the 2021 Plan is shown below: Number of options Weighted-average exercise price Weighted-average remaining contractual life Aggregate intrinsic value Outstanding at July 31, 2022 1,555,610 $ 17.15 8.7 $ 3,847 Granted 1,067,979 14.43 Exercised — — Forfeited (112,912) 17.00 Expired (4,549) 18.08 Outstanding at October 31, 2022 2,506,128 $ 16.00 9.0 $ 203 Exercisable as of October 31, 2022 374,309 $ 17.12 7.6
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	The following assumptions were applied in the Black-Scholes option pricing model to estimate the grant-date fair value of the stock options granted in the three months ended October 31, 2022: Three months ended October 31, 2022 Expected term (in years) (a) 6.23 Expected dividend yield (b) — % Risk-free interest rate (c) 3.96 % Expected volatility (d) 33.9 % Stock price $ 14.43 ________________________________________________ (a) Calculated as the midpoint between the weighted-average time to vest and the time to expiration. (b) The Company has not historically paid and does not expect to pay dividends in the foreseeable future. (c) The risk-free rate was estimated from the U.S. Treasury Constant Maturity Rates for a period consistent with the expected term in effect at the grant date. (d) The expected volatility was estimated based on analysis of the historical and implied volatility of a group of guideline public companies deemed to be comparable public peers within the Company’s industry.
Share-based Payment Arrangement, Restricted Stock Unit, Activity	The following table represents the RSU grant activity under the 2021 Plan: Number of units Weighted-average grant-date fair value per share Unvested as of July 31, 2022 414,609 $ 17.32 Granted 355,993 14.43 Vested — — Forfeited (37,638) 17.00 Unvested as of October 31, 2022 732,964 $ 15.93
Schedule of Employee Stock Purchase Plan (ESPP) Valuation Assumptions	The following assumptions were applied in the model to estimate the grant-date fair value of the ESPP for the offering period that began on September 1, 2022. Three months ended October 31, 2022 Expected term (in years) (a) 0.33 Expected dividend yield (b) — Risk-free interest rate (c) 3.07 % Expected volatility (d) 41 % Stock price $ 18.38 ________________________________________________ (a) Calculated as the midpoint between the weighted average time to vest and the time to expiration. (b) The Company has not historically paid and does not expect to pay dividends in the foreseeable future. (c) The risk-free rate was estimated from the U.S. Treasury Constant Maturity Rates for a period consistent with the expected term in effect at the grant date. (d) The expected volatility was estimated based on analysis of the Company's historical and implied volatility, and considering a group of guideline public companies deemed to be comparable public peers within the Company’s industry.

Earnings per share (Tables)

Earnings per share (Tables)	3 Months Ended
	Oct. 31, 2022
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Common Shares	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) 2022 2021 Numerator - Net income attributable to The Duckhorn Portfolio, Inc. $ 19,815 $ 21,273 Denominator: Weighted average number of shares outstanding for basic per share calculation 115,184,161 115,046,793 Effect of dilutive potential shares (a) : Stock options 11,976 167,269 Restricted stock awards 79,555 181,964 Adjusted weighted average shares outstanding for diluted per share calculation 115,275,692 115,396,026 Earnings per share attributable to The Duckhorn Portfolio, Inc. Basic $ 0.17 $ 0.18 Diluted $ 0.17 $ 0.18 Anti-dilutive shares: Stock options 60,022 2,925 Restricted stock awards 17,543 — _______________________________________ (a) Calculated using the treasury stock method.

Description of business (Detail

Description of business (Details) - Secondary Offering - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended
	Nov. 30, 2021	Oct. 31, 2021
Subsidiary, Sale of Stock [Line Items]
Sale of stock, number of shares issued in transaction	626,467	12,000,000
Sale of stock, price per share (in dollars per share)		$ 20.50
Sale of stock, transaction costs		$ 0.5

Basis of presentation and rec_3

Basis of presentation and recent accounting pronouncements (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	12 Months Ended
	Oct. 31, 2022	Jul. 31, 2022
Accounting Policies [Line Items]
Preferred stock, shares authorized (in shares)	100,000,000
Preferred stock, par or stated value per share (in dollars per share)	$ 0.01
Preferred stock, shares issued (in shares)	0
Preferred stock, shares outstanding (in shares)	0
Variable interest entity, net assets	$ 2.3
Variable Interest Entity, Primary Beneficiary
Accounting Policies [Line Items]
Variable interest entity, ownership percentage	76.20%	76.20%
Variable interest entity, net assets		$ 2.4

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenue (Details) $ in Thousands	3 Months Ended
	Oct. 31, 2022 USD ($)	Oct. 31, 2021 USD ($)
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, percent	1	1
Revenue	$ 108,171	$ 104,181
Wholesale - Distributors
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, percent	0.764	0.685
Wholesale - California direct to trade
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, percent	0.158	0.164
DTC
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, percent	0.078	0.151
Bulk, Grape and Merchandise Sales
Disaggregation of Revenue [Line Items]
Revenue	$ 600	$ 2,300
Shipping and Handling
Disaggregation of Revenue [Line Items]
Revenue	$ 100	$ 600

Revenue - Narrative (Details)

Revenue - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2022	Oct. 31, 2021	Jul. 31, 2022
Revenue from Contract with Customer [Abstract]
Recoveries and reductions in the allowance for credit loss		$ 400
Allowance for credit losses on current accounts receivable	$ 400		$ 400
Deferred revenue	12,069		$ 272
Revenue recognized	$ 200

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Oct. 31, 2022	Jul. 31, 2022
Inventory Disclosure [Abstract]
Finished goods	$ 104,764	$ 108,989
Work in progress	217,795	162,337
Raw materials	19,367	14,104
Total	$ 341,926	$ 285,430

Inventories - Narrative (Detail

Inventories - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Oct. 31, 2022	Oct. 31, 2021	Jul. 31, 2022
Inventory Disclosure [Abstract]
Excess and obsolete inventory reserve	$ 4.6		$ 5.1
Inventory, capitalized costs incurred	3.5	$ 2.6
Capitalized leases costs used in production of inventory	$ 1.1	$ 1.1

Property and equipment, net - S

Property and equipment, net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Oct. 31, 2022	Jul. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, net	$ 274,324	$ 269,659
Depreciable Property and Equipment
Property, Plant and Equipment [Line Items]
Total depreciable property and equipment	334,847	334,586
Less: accumulated depreciation and amortization	(74,204)	(70,591)
Property and equipment, net	260,643	263,995
Land
Property, Plant and Equipment [Line Items]
Total depreciable property and equipment	136,328	136,328
Buildings and improvements
Property, Plant and Equipment [Line Items]
Total depreciable property and equipment	70,847	70,813
Machinery and equipment
Property, Plant and Equipment [Line Items]
Total depreciable property and equipment	53,096	52,619
Vineyards and improvements
Property, Plant and Equipment [Line Items]
Total depreciable property and equipment	44,759	44,759
Barrels
Property, Plant and Equipment [Line Items]
Total depreciable property and equipment	29,817	30,067
Construction in progress
Property, Plant and Equipment [Line Items]
Total depreciable property and equipment	$ 13,681	$ 5,664

Property and equipment, net - N

Property and equipment, net - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Oct. 31, 2022	Oct. 31, 2021
Property, Plant and Equipment [Abstract]
Depreciation	$ 0.4	$ 0.3

Accrued expenses (Details)

Accrued expenses (Details) - USD ($) $ in Thousands	Oct. 31, 2022	Jul. 31, 2022
Payables and Accruals [Abstract]
Bulk wine and other received not invoiced	$ 26,603	$ 143
Trade spend	18,452	15,319
Income taxes payable	7,103	387
Barrel purchase	3,283	988
Deferred compensation liability	2,561	2,142
Accrued professional fees	1,072	3,191
Accrued invoices and other accrued expenses	10,464	7,305
Total	69,538	29,475
Cash surrender value of life insurance	$ 1,600	$ 1,800

Debt (Details)

Debt (Details) - USD ($)	3 Months Ended
	Oct. 31, 2022	Oct. 31, 2021	Nov. 04, 2022
Debt Instrument [Line Items]
Amortization of debt issuance costs	$ 402,000	$ 402,000
Capital Expenditure Loan
Debt Instrument [Line Items]
Outstanding principal balance	4,100,000
First Lien Loan Agreement, Tranche One | Secured Debt
Debt Instrument [Line Items]
Outstanding principal balance	95,100,000
First Lien Loan Agreement, Tranche Two | Secured Debt
Debt Instrument [Line Items]
Outstanding principal balance	13,100,000
First Lien Senior Secured Credit Facilities | Subsequent Event
Debt Instrument [Line Items]
Additional borrowing capacity			$ 400,000,000
Maximum borrowing capacity			675,800,000
Revolving Line of Credit
Debt Instrument [Line Items]
Line of credit	95,000,000
Unused capacity	330,000,000
Additional borrowing capacity	$ 30,000,000
Weighted average interest rate (percent)	1.80%
Revolving Line of Credit | First Lien Senior Secured Credit Facilities | Subsequent Event
Debt Instrument [Line Items]
Maximum borrowing capacity			425,000,000
Letter of Credit Sub-Facility
Debt Instrument [Line Items]
Line of credit	$ 0
Swingline Sub-Facility
Debt Instrument [Line Items]
Line of credit	$ 0
Term Loan Facility | First Lien Senior Secured Credit Facilities | Subsequent Event
Debt Instrument [Line Items]
Maximum borrowing capacity			225,800,000
Delayed Draw Term Loan Facility | First Lien Senior Secured Credit Facilities | Subsequent Event
Debt Instrument [Line Items]
Maximum borrowing capacity			$ 25,000,000

Derivative instruments - Narrat

Derivative instruments - Narrative (Details) - USD ($)	Oct. 31, 2022	Jul. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Cash collateral received	$ 0	$ 0
Cash collateral pledged	$ 0	$ 0

Derivative instruments - Intere

Derivative instruments - Interest Rate Swaps (Details) - Interest Rate Swap Expiring March 2023 $ in Thousands	Oct. 31, 2022 USD ($)
Derivative [Line Items]
Notional amount	$ 100,000
Interest rate (percent)	0.315%

Derivative instruments - Total

Derivative instruments - Total Notional Amount (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands	Oct. 31, 2022	Jul. 31, 2022
Derivative [Line Items]
Notional amount	$ 101,021	$ 102,793
Interest rate swap contracts
Derivative [Line Items]
Notional amount	100,000	100,000
Foreign currency forward contracts
Derivative [Line Items]
Notional amount	$ 1,021	$ 2,793

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, 2022	Jul. 31, 2022
Interest rate swap contracts
Derivatives, Fair Value [Line Items]
Derivative asset	$ 1,588	$ 1,443
Interest rate swap contracts | Other current assets
Derivatives, Fair Value [Line Items]
Derivative asset	1,588	1,443
Foreign currency forward contracts
Derivatives, Fair Value [Line Items]
Derivative liability	0	223
Foreign currency forward contracts | Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liability	$ 0	$ 223

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, 2022	Oct. 31, 2021
Derivative [Line Items]
Total (gains) losses	$ (368)	$ (442)
Not Designated as Hedging Instrument
Derivative [Line Items]
Total (gains) losses	(368)	(442)
Interest rate swap contracts | Not Designated as Hedging Instrument
Derivative [Line Items]
Total (gains) losses	(145)	(446)
Foreign currency forward contracts | Not Designated as Hedging Instrument
Derivative [Line Items]
Total (gains) losses	$ (223)	$ 4

Fair value measurements - Asset

Fair value measurements - Assets and Liabilities Measured on a Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Oct. 31, 2022	Jul. 31, 2022
Assets
Deferred compensation plan asset	$ 1,631	$ 1,753
Liabilities
Deferred compensation liability	2,561	2,142
Interest rate swap contracts
Assets
Derivative asset	1,588	1,443
Foreign currency forward contracts
Liabilities
Derivative liability		223
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) | Interest rate swap contracts
Assets
Derivative asset	0	0
Significant other observable inputs (Level 2)
Assets
Deferred compensation plan asset	1,631	1,753
Liabilities
Deferred compensation liability	2,561	2,142
Significant other observable inputs (Level 2) | Interest rate swap contracts
Assets
Derivative asset	1,588	1,443
Significant other observable inputs (Level 2) | Foreign currency forward contracts
Liabilities
Derivative liability		223
Significant unobservable inputs (Level 3)
Assets
Deferred compensation plan asset	0	0
Liabilities
Deferred compensation liability	0	0
Significant unobservable inputs (Level 3) | Interest rate swap contracts
Assets
Derivative asset	$ 0	$ 0

Commitments and contingencies -

Commitments and contingencies - Narrative (Details) - USD ($)	3 Months Ended	12 Months Ended
	Oct. 31, 2022	Jul. 31, 2022
Commitments and Contingencies [Line Items]
Purchase commitment, remaining amount committed	$ 8,400,000
Indemnification Agreement
Commitments and Contingencies [Line Items]
Accruals relating to indemnification provisions	0	$ 0
Euro
Commitments and Contingencies [Line Items]
Purchase commitment, remaining amount committed	6,700,000
Inventories
Commitments and Contingencies [Line Items]
Long-term purchase commitment, amount purchased, cost	$ 71,000,000	$ 68,100,000
Minimum
Commitments and Contingencies [Line Items]
Long-term purchase contract, period	1 year
Maximum
Commitments and Contingencies [Line Items]
Long-term purchase contract, period	8 years

Equity-based compensation - Nar

Equity-based compensation - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Oct. 31, 2022	Oct. 31, 2021	Mar. 31, 2021
2016 Equity Plan | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of vested restricted shares	$ 4.9
2021 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grants (shares)			14,003,560
Unrecognized compensation expense of stock options	10.3
2021 Equity Incentive Plan | Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment arrangement, expense	$ 0.5	$ 0.5
Unrecognized compensation expense, period for recognition (years)	3 years 2 months 12 days
2021 Equity Incentive Plan | RSU
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment arrangement, expense	$ 0.7	$ 0.8
Unrecognized compensation expense, period for recognition (years)	3 years 1 month 6 days
Unrecognized compensation expense	$ 10
2021 Employee Stock Purchase Plan | Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grants (shares)	1,250,509
Purchases under ESPP (in shares)	0	0

Equity-based compensation - Act

Equity-based compensation - Activity for Awards (Details)	3 Months Ended
	Oct. 31, 2022 $ / shares shares
Restricted Stock | 2016 Equity Plan
Number of units
Unvested, beginning (in shares) | shares	266,158
Granted (shares) | shares	0
Vested (in shares) | shares	(266,158)
Forfeited (in shares) | shares	0
Unvested, ending (in shares) | shares	0
Weighted-average grant-date fair value
Unvested, beginning (in dollars per share) | $ / shares	$ 14.23
Granted (in dollars per share) | $ / shares	0
Vested (in dollars per share) | $ / shares	14.23
Forfeited (in dollars per share) | $ / shares	0
Unvested, ending (in dollars per share) | $ / shares	$ 0
RSU | 2021 Equity Incentive Plan
Number of units
Unvested, beginning (in shares) | shares	414,609
Granted (shares) | shares	355,993
Vested (in shares) | shares	0
Forfeited (in shares) | shares	(37,638)
Unvested, ending (in shares) | shares	732,964
Weighted-average grant-date fair value
Unvested, beginning (in dollars per share) | $ / shares	$ 17.32
Granted (in dollars per share) | $ / shares	14.43
Vested (in dollars per share) | $ / shares	0
Forfeited (in dollars per share) | $ / shares	17
Unvested, ending (in dollars per share) | $ / shares	$ 15.93

Equity-based compensation - Sto

Equity-based compensation - Stock Option Activity (Details) - 2021 Equity Incentive Plan - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Oct. 31, 2022	Jul. 31, 2022
Number of options
Outstanding, beginning (shares)	1,555,610
Granted (shares)	1,067,979
Exercised (shares)	0
Forfeited (shares)	(112,912)
Expired (shares)	(4,549)
Outstanding, ending (shares)	2,506,128	1,555,610
Exercisable (shares)	374,309
Weighted-average exercise price
Outstanding, beginning (in dollars per share)	$ 17.15
Granted (in dollars per share)	14.43
Exercised (in dollars per share)	0
Forfeited (in dollars per share)	17
Expired (in dollars per share)	18.08
Outstanding, ending (in dollars per share)	16	$ 17.15
Exercisable (in dollars per share)	$ 17.12
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted-average remaining contractual life (in years)	9 years	8 years 8 months 12 days
Exercisable, weighted-average remaining contractual life (in years)	7 years 7 months 6 days
Aggregate intrinsic value	$ 203	$ 3,847
Exercisable, aggregate intrinsic value

Equity-based compensation - Val

Equity-based compensation - Valuation Assumptions (Details)	3 Months Ended
	Oct. 31, 2022 $ / shares
2021 Equity Incentive Plan | Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 years 2 months 23 days
Expected dividend yield (percent)	0%
Risk-free interest rate (percent)	3.96%
Expected volatility (percent)	33.90%
Stock price (in dollars per share)	$ 14.43
2021 Employee Stock Purchase Plan | Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	3 months 29 days
Expected dividend yield (percent)	0%
Risk-free interest rate (percent)	3.07%
Expected volatility (percent)	41%
Stock price (in dollars per share)	$ 18.38

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, 2022	Oct. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Numerator - Net income attributable to The Duckhorn Portfolio, Inc.	$ 19,815	$ 21,273
Denominator:
Weighted average number of shares of outstanding for basic per share calculation (in shares)	115,184,161	115,046,793
Adjusted weighted average shares outstanding for diluted per share calculation (in shares)	115,275,692	115,396,026
Earnings per share attributable to The Duckhorn Portfolio, Inc.
Basic (in dollars per share)	$ 0.17	$ 0.18
Diluted (in dollars per share)	$ 0.17	$ 0.18
Stock Option
Denominator:
Effect of dilutive potential shares (in shares)	11,976	167,269
Earnings per share attributable to The Duckhorn Portfolio, Inc.
Anti-dilutive shares (in shares)	60,022	2,925
Restricted Stock
Denominator:
Effect of dilutive potential shares (in shares)	79,555	181,964
Earnings per share attributable to The Duckhorn Portfolio, Inc.
Anti-dilutive shares (in shares)	17,543	0

Income taxes (Details)

Income taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2022	Oct. 31, 2021
Income Tax Disclosure [Abstract]
Income tax expense	$ 7,087	$ 7,377
Effective income tax rate, percent	26.30%	25.70%

Subsequent events (Details)

Subsequent events (Details) - USD ($)	Nov. 04, 2022	Oct. 31, 2022	Aug. 31, 2018	Dec. 31, 2016
First Lien Loan Agreement, Tranche One | Secured Debt
Subsequent Event [Line Items]
Secured debt				$ 135,000,000
First Lien Loan Agreement, Tranche Two | Secured Debt
Subsequent Event [Line Items]
Secured debt			$ 25,000,000
Capital Expenditure Facility | Secured Debt
Subsequent Event [Line Items]
Secured debt				$ 25,000,000
Revolving Line of Credit
Subsequent Event [Line Items]
Additional borrowing capacity		$ 30,000,000
Subsequent Event | First Lien Senior Secured Credit Facilities
Subsequent Event [Line Items]
Maximum borrowing capacity	$ 675,800,000
Additional borrowing capacity	$ 400,000,000
Subsequent Event | First Lien Senior Secured Credit Facilities | Maximum
Subsequent Event [Line Items]
Debt capitalization ratio	0.55
Subsequent Event | First Lien Senior Secured Credit Facilities | Minimum
Subsequent Event [Line Items]
Fixed change coverage ratio	1.15
Subsequent Event | First Lien Senior Secured Credit Facilities | SOFR | Less Than or Equal to 33% of Average Availability
Subsequent Event [Line Items]
Loan margin (percent)	1.50%
Subsequent Event | First Lien Senior Secured Credit Facilities | SOFR | Greater Than 33% and Less Than or Equal to 66% of Average Availability
Subsequent Event [Line Items]
Loan margin (percent)	1.25%
Subsequent Event | First Lien Senior Secured Credit Facilities | SOFR | Greater Than 66% of Average Availability
Subsequent Event [Line Items]
Loan margin (percent)	1%
Subsequent Event | Revolving Line of Credit | First Lien Senior Secured Credit Facilities
Subsequent Event [Line Items]
Maximum borrowing capacity	$ 425,000,000
Subsequent Event | Term Loan Facility | First Lien Senior Secured Credit Facilities
Subsequent Event [Line Items]
Maximum borrowing capacity	225,800,000
Subsequent Event | Delayed Draw Term Loan Facility | First Lien Senior Secured Credit Facilities
Subsequent Event [Line Items]
Maximum borrowing capacity	$ 25,000,000
Subsequent Event | Term Loan and Delayed Draw Term Loan Facilities | First Lien Senior Secured Credit Facilities | SOFR
Subsequent Event [Line Items]
Loan margin (percent)	1.625%
Subsequent Event | Term Loan and Delayed Draw Term Loan Facilities | First Lien Senior Secured Credit Facilities | SOFR | Variable Rate Component One
Subsequent Event [Line Items]
Basis spread on variable rate (percent)	0.10%
Subsequent Event | Term Loan and Delayed Draw Term Loan Facilities | First Lien Senior Secured Credit Facilities | SOFR | Variable Rate Component Two
Subsequent Event [Line Items]
Basis spread on variable rate (percent)	0.15%