The Duckhorn Portfolio, Inc. (NAPA) 10-Q 8 Mar 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jan. 31, 2023	Mar. 01, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jan. 31, 2023
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		115,219,396
Entity Central Index Key	0001835256
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false
Current Fiscal Year End Date	--07-31

Condensed Consolidated Statemen

Condensed Consolidated Statements of Financial Position (unaudited) - USD ($) $ in Thousands	Jan. 31, 2023	Jul. 31, 2022
Current assets
Cash	$ 7,292	$ 3,167
Accounts receivable trade, net	48,324	37,026
Inventories	327,024	285,430
Prepaid expenses and other current assets	13,125	13,898
Total current assets	395,765	339,521
Long-term assets
Property and equipment, net	271,217	269,659
Operating lease right-of-use assets	21,777	23,375
Intangible assets, net	188,006	191,786
Goodwill	425,209	425,209
Other long-term assets	5,487	1,963
Total long-term assets	911,696	911,992
Total assets	1,307,461	1,251,513
Current liabilities
Accounts payable	18,410	3,382
Accrued expenses	29,071	29,475
Accrued compensation	9,224	12,893
Deferred revenue	3,285	272
Current operating lease liabilities	3,603	3,498
Current maturities of long-term debt	9,721	9,810
Other current liabilities	3,056	672
Total current liabilities	76,370	60,002
Long-term liabilities
Revolving line of credit, net	0	108,674
Long-term debt, net of current maturities and debt issuance costs	215,633	105,074
Operating lease liabilities	18,000	19,732
Derivative instrument	1,537	0
Deferred income taxes	90,483	90,483
Other long-term liabilities	387	387
Total long-term liabilities	326,040	324,350
Total liabilities	402,410	384,352
Commitments and contingencies (Note 10)
Equity
Common stock, $0.01 par value; 500,000,000 shares authorized; 115,219,396 issued and outstanding at January 31, 2023 and 115,184,161 issued and outstanding at July 31, 2022	1,152	1,152
Additional paid-in capital	734,763	731,597
Retained earnings	168,556	133,824
Total The Duckhorn Portfolio, Inc. equity	904,471	866,573
Non-controlling interest	580	588
Total equity	905,051	867,161
Total liabilities and equity	$ 1,307,461	$ 1,251,513

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Financial Position (unaudited) (Parenthetical) - $ / shares	Jan. 31, 2023	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)	115,219,396	115,184,161
Common stock, shares outstanding (in shares)	115,219,396	115,184,161

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Operations (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2023	Jan. 31, 2022
Income Statement [Abstract]
Net sales (net of excise taxes of $1,469, $1,507, $3,052 and $2,983, respectively)	$ 103,488	$ 98,736	$ 211,659	$ 202,917
Cost of sales	48,302	49,259	101,763	101,030
Gross profit	55,186	49,477	109,896	101,887
Selling, general and administrative expenses	29,579	23,845	55,318	47,052
Income from operations	25,607	25,632	54,578	54,835
Interest expense	2,684	1,636	4,846	3,242
Other expense (income), net	2,743	(338)	2,656	(1,431)
Total other expenses, net	5,427	1,298	7,502	1,811
Income before income taxes	20,180	24,334	47,076	53,024
Income tax expense	5,265	6,407	12,352	13,784
Net income	14,915	17,927	34,724	39,240
Less: Net loss (income) attributable to non-controlling interest	2	5	8	(35)
Net income attributable to The Duckhorn Portfolio, Inc.	$ 14,917	$ 17,932	$ 34,732	$ 39,205
Net income per share of common stock:
Basic (in dollars per share)	$ 0.13	$ 0.16	$ 0.30	$ 0.34
Diluted (in dollars per share)	$ 0.13	$ 0.16	$ 0.30	$ 0.34
Weighted average shares of common stock outstanding:
Basic (in shares)	115,191,575	115,049,395	115,187,868	115,048,094
Diluted (in shares)	115,327,660	115,389,502	115,424,809	115,391,011

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Operations (unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2023	Jan. 31, 2022
Income Statement [Abstract]
Excise taxes	$ 1,469	$ 1,507	$ 3,052	$ 2,983

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)	39,240	39,205			39,205	35
Issuance of common stock under equity incentive plans (in shares)			18,417
Issuance of common stock under equity incentive plans	1	1	$ 1
Equity-based compensation (Note 11)	2,875	2,875		2,875
Initial public offering, net of issuance costs	(270)	(270)		(270)
Ending balance (in shares) at Jan. 31, 2022			115,065,210
Ending balance at Jan. 31, 2022	844,084	843,498	$ 1,151	729,508	112,839	586
Beginning balance (in shares) at Oct. 31, 2021			115,046,793
Beginning balance at Oct. 31, 2021	825,010	824,419	$ 1,150	728,362	94,907	591
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	17,927	17,932			17,932	(5)
Issuance of common stock under equity incentive plans (in shares)			18,417
Issuance of common stock under equity incentive plans	1	1	$ 1
Equity-based compensation (Note 11)	1,416	1,416		1,416
Initial public offering, net of issuance costs	(270)	(270)		(270)
Ending balance (in shares) at Jan. 31, 2022			115,065,210
Ending balance at Jan. 31, 2022	$ 844,084	843,498	$ 1,151	729,508	112,839	586
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)	34,724	34,732			34,732	(8)
Issuance of common stock under equity incentive plans (in shares)			22,365
Issuance of employee stock purchase plan (in shares)			12,870
Issuance of employee stock purchase plan	181	181		181
Equity-based compensation (Note 11)	$ 2,985	2,985		2,985
Ending balance (in shares) at Jan. 31, 2023	115,219,396		115,219,396
Ending balance at Jan. 31, 2023	$ 905,051	904,471	$ 1,152	734,763	168,556	580
Beginning balance (in shares) at Oct. 31, 2022			115,184,161
Beginning balance at Oct. 31, 2022	888,150	887,568	$ 1,152	732,777	153,639	582
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	14,915	14,917			14,917	(2)
Issuance of common stock under equity incentive plans (in shares)			22,365
Issuance of employee stock purchase plan (in shares)			12,870
Issuance of employee stock purchase plan	181	181		181
Equity-based compensation (Note 11)	$ 1,805	1,805		1,805
Ending balance (in shares) at Jan. 31, 2023	115,219,396		115,219,396
Ending balance at Jan. 31, 2023	$ 905,051	$ 904,471	$ 1,152	$ 734,763	$ 168,556	$ 580

Condensed Consolidated Statem_6

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jan. 31, 2023	Jan. 31, 2022
Cash flows from operating activities
Net income	$ 34,724	$ 39,240
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	13,290	11,047
Loss (gain) on disposal of assets	93	(13)
Change in fair value of derivatives	2,061	(957)
Amortization of debt issuance costs	593	804
Equity-based compensation	2,985	2,875
Change in operating assets and liabilities:
Accounts receivable trade, net	(11,298)	(9,755)
Inventories	(39,881)	(28,187)
Prepaid expenses and other current assets	26	(361)
Other long-term assets	(555)	(217)
Accounts payable	15,020	6,377
Accrued expenses	830	6,621
Accrued compensation	(3,669)	(4,129)
Deferred revenue	3,013	(2,960)
Other current and long-term liabilities	865	(1,557)
Net cash provided by operating activities	18,097	18,828
Cash flows from investing activities
Purchases of property and equipment, net of sales proceeds	(12,388)	(23,336)
Net cash used in investing activities	(12,388)	(23,336)
Cash flows from financing activities
Payments under line of credit	(119,000)	(52,000)
Borrowings under line of credit	9,000	63,000
Issuance of long-term debt	225,833	0
Payments of long-term debt	(115,166)	(5,696)
Proceeds from employee stock purchase plan	181	0
Payments for debt issuance costs	(2,432)	0
Payments of deferred offering costs	0	(270)
Net cash (used in) provided by financing activities	(1,584)	5,034
Net increase in cash	4,125	526
Cash - Beginning of period	3,167	4,244
Cash - End of period	7,292	4,770
Supplemental cash-flow information
Interest paid, net of amount capitalized	1,649	2,479
Income taxes paid	10,621	8,014
Non-cash investing activities
Property and equipment additions in accounts payable and accrued expenses	$ 467	$ 193

Description of business

Description of business	6 Months Ended
	Jan. 31, 2023
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 In the first quarter of Fiscal 2022, the Company completed a secondary offering where certain existing stockholders sold 12,000,000 shares of common stock at a price of $20.50 per share. In November 2021, an additional 626,467 shares of common stock were sold pursuant to the partial exercise of the underwriters' option to purchase additional shares. The Company did not receive any of the proceeds from the sale of the shares by the existing stockholders. In connection with the offering, the Company incurred costs of $0.6 million during the six months ended January 31, 2022, which are reflected in selling, general and administrative expenses on the Condensed Consolidated Statement of Operations.

Basis of presentation and recen

Basis of presentation and recent accounting pronouncements	6 Months Ended
	Jan. 31, 2023
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 Condensed Consolidated Statement of Financial Position as of July 31, 2022 was derived from the Company's audited financial statements for the fiscal year ended July 31, 2022, previously filed with the SEC. The Condensed Consolidated Financial Statements do not include all of the information and note disclosures required by U.S. GAAP and should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal 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 Topic 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 January 31, 2023 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 were $2.3 million and $2.4 million at January 31, 2023 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. The Company adopted the standard effective August 1, 2022, the first day of Fiscal 2023. The adoption of the standard did not have a material impact on the Condensed Consolidated Financial Statements or the related disclosures. 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 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 January 31, 2023 have had, or are expected to have, a material impact on the Condensed Consolidated Financial Statements or the related disclosures.

Revenue

Revenue	6 Months Ended
	Jan. 31, 2023
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 January 31, Six months ended January 31, 2023 2022 2023 2022 Wholesale - Distributors 61.3 % 67.2 % 69.0 % 67.9 % Wholesale - California direct to trade (a) 19.1 19.8 17.4 18.1 DTC (b) 19.6 13.0 13.6 14.0 Net sales 100.0 % 100.0 % 100.0 % 100.0 % ________________________________________________ (a) Includes $0.6 million of sales related to bulk and grape sales for the six months ended January 31, 2023, and $0.5 million and $2.8 million for the three and six months ended January 31, 2022, respectively. (b) Includes shipping and handling revenue of $0.9 million and $1.0 million for the three and six months ended January 31, 2023, respectively, and $0.4 million and $0.9 million for the three and six months ended January 31, 2022, respectively. Charges related to credit loss on accounts receivable were immaterial for the three and six months ended January 31, 2023. Recoveries and reductions in the allowance for credit loss were immaterial for the three and six months ended January 31, 2023. As of January 31, 2023 and July 31, 2022, the allowance for credit losses was $0.4 million for both periods. 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 in the Condensed Consolidated Statements of Financial Position was $3.3 million and $0.3 million at January 31, 2023 and July 31, 2022, respectively. In the three and six months ended January 31, 2023, the Company recognized revenue of $12.1 million and $0.3 million, respectively, which was included in the opening contract liability balance for the corresponding period.

Inventories

Inventories	6 Months Ended
	Jan. 31, 2023
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories were comprised of the following: (in thousands) January 31, July 31, Finished goods $ 91,142 $ 108,989 Work in progress 232,227 162,337 Raw materials 3,655 14,104 Inventories $ 327,024 $ 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 $0.4 million and $5.1 million at January 31, 2023 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 January 31, 2023 and 2022, the amount capitalized was $5.2 million and $4.0 million, respectively, and $8.6 million and $6.6 million for the six months ended January 31, 2023 and 2022, respectively. The Company also capitalizes total lease costs related to leases used in the production of inventory. For the three months ended January 31, 2023 and 2022, the amount capitalized was $1.1 million and $1.1 million, respectively. For the six months ended January 31, 2023 and 2022, the amount capitalized was $2.2 million and $2.1 million, respectively.

Property and equipment, net

Property and equipment, net	6 Months Ended
	Jan. 31, 2023
Property, Plant and Equipment [Abstract]
Property and equipment, net	Property and equipment, net Property and equipment, net was comprised of the following: (in thousands) January 31, July 31, Land $ 136,328 $ 136,328 Buildings and improvements 70,847 70,813 Machinery and equipment 53,160 52,619 Vineyards and improvements 44,866 44,759 Barrels 37,185 30,067 Total depreciable property and equipment 342,386 334,586 Less: accumulated depreciation and amortization (77,898) (70,591) Total depreciable property and equipment, net 264,488 263,995 Construction in progress 6,729 5,664 Property and equipment, net $ 271,217 $ 269,659 Depreciation expense recognized in selling, general and administrative expenses was $0.5 million and $0.3 million for the three months ended January 31, 2023 and 2022, respectively, and $0.9 million and $0.7 million for the six months ended January 31, 2023 and 2022, respectively. See Note 4 (Inventories) for depreciation expense capitalized into inventory. Vineyard acquisitions In the second quarter of Fiscal 2022, the Company completed the purchase of three Napa County, California vineyards and related assets for a total of $14.5 million.

Accrued expenses

Accrued expenses	6 Months Ended
	Jan. 31, 2023
Payables and Accruals [Abstract]
Accrued expenses	Accrued expenses Accrued expenses were comprised of the following: (in thousands) January 31, July 31, Trade spend (a) $ 17,477 $ 15,319 Accrued professional fees 3,903 3,191 Deferred compensation liability (b) 2,879 2,142 Income taxes payable 1,730 387 Bulk wine and other received not invoiced 882 143 Barrel purchases — 988 Accrued invoices and other accrued expenses 2,200 7,305 Accrued expenses $ 29,071 $ 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 to partially settle its deferred compensation plan liability. The cash surrender value of the life insurance policies was $2.3 million and $1.8 million at January 31, 2023 and July 31, 2022, respectively, and is included in other long-term assets on the Condensed Consolidated Statements of Financial Position.

Debt

Debt	6 Months Ended
	Jan. 31, 2023
Debt Disclosure [Abstract]
Debt	Debt At January 31, 2023, the Company had unused capacity of $425.0 million under the new revolving line of credit, excluding the incremental seasonal borrowing amount of an additional $30.0 million of capacity. There were no amounts outstanding on the letter of credit sub-facility or the swingline sub-facility at January 31, 2023. Included in interest expense in the Condensed Consolidated Statements of Operations is amortization related to debt issuance costs of $0.2 million and $0.4 million for the three months ended January 31, 2023 and 2022, respectively, and of $0.6 million and $0.8 million for the six months ended January 31, 2023 and 2022, 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 capitalization ratio and a fixed charge coverage ratio as defined in the New Credit Facility. As of January 31, 2023, the Company is in compliance with all covenants. Amendment to the Original Credit 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 Credit 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. 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 and 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 incurred approximately $3.3 million in debt issuance costs, including bank financing fees and third party legal and other professional fees in closing the New Credit Agreement, of which approximately $2.4 million were capitalized in accordance with ASC Topic 470, Debt . The fees associated with the revolving and delayed draw term facilities were capitalized to other long-term assets and the fees associated with the term loan facility were capitalized to long-term debt, net of current maturities and debt issuance costs on the Condensed Consolidated Statement of Position. The capitalized debt issuance costs will be amortized as interest expense over the term of the New Credit Agreement. Other related charges incurred of $0.9 million that were not capitalized during the period are reflected in other (income) expense in the Condensed Consolidated Statement of Operations. Long-term debt, net was comprised of the following: (in thousands) January 31, 2023 July 31, 2022 Revolving line of credit $ — $ 110,000 Term loan, first lien 225,832 110,117 Capital expenditure loan (a) — 5,049 Total debt 225,832 225,166 Less: Current maturities of long-term debt (9,721) (9,810) Total long-term debt 216,111 215,356 Debt issuance costs (b) (478) (1,608) Total long-term debt, net of current maturities and debt issuance costs $ 215,633 $ 213,748 _______________________________________________ (a) The capital expenditure loan under the Original Credit Agreement was replaced as part of the refinancing and execution of the New Credit Agreement. Under the New Credit Facility, the intent of the delayed draw term loan is similar to that of the capital expenditure loan under the Original Credit Agreement. The delayed draw term loan is secured by certain capital expenditures. As of January 31, 2023, the Company has not drawn on the delayed draw term loan. (b) At January 31, 2023, debt issuance costs are the costs associated with the term loan facility. Debt issuance costs of $3.0 million associated with the revolving credit and delayed draw term loan facilities are recorded in other long-term assets on the Condensed Consolidated Statements of Financial Position. Under the Original Credit Facility, the revolving credit facility debt issuance costs were treated consistently with those of the term debt facilities as the Company did not intend to repay the revolving credit facility in full prior to its maturity.

Derivative instruments

Derivative instruments	6 Months Ended
	Jan. 31, 2023
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 January 31, 2023 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 January 31, 2023, 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 $100,000 3.735% January 4, 2023 November 4, 2027 The total notional amounts of the Company’s derivative instruments outstanding are as follows: (in thousands) January 31, July 31, Derivative instruments not designated as hedging instruments Interest rate swap contracts $ 200,000 $ 100,000 Foreign currency forward contracts 1,010 2,793 Total derivative instruments not designated as hedging instruments $ 201,010 $ 102,793 Effective September 30, 2022, the Company amended its interest rate swap initially entered into in March 2020 to transition from a LIBOR-based floating rate to a Term SOFR based floating rate. On January 4, 2023, the Company entered into an interest rate swap that partially mitigates the risk to the Company due to potential future Term SOFR movements by trading floating rate payments for fixed rate payments on an applicable notional amount of outstanding variable rate debt. 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, generally aligning settlement dates with expected barrel deliveries and the anticipated timing of payments to various coopers. Results of period derivative activity The estimated fair value and classification of derivative instruments on the accompanying Condensed Consolidated Statements of Financial Position for January 31, 2023 were as follows: (in thousands) Derivative Assets Derivative Liabilities Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Interest rate swap contracts Prepaid expenses and other current assets $ 607 Derivative instrument $ 1,537 Foreign currency forward contracts Prepaid expenses and other current assets 89 Other current liabilities — Total derivatives not designated as hedging instruments $ 696 $ 1,537 The estimated fair value and classification of derivative instruments on the accompanying Condensed Consolidated Statements of Financial Position for July 31, 2022 were as follows: (in thousands) Derivative Assets Derivative Liabilities Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Interest rate swap contracts Prepaid expenses and other current assets $ 1,443 Derivative instrument $ — Foreign currency forward contracts Prepaid expenses and other current assets — Other current liabilities 223 Total derivatives not designated as hedging instruments $ 1,443 $ 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 January 31, Six months ended January 31, (in thousands) Classification 2023 2022 2023 2022 Interest rate swap contracts Other expense (income), net $ 2,518 $ (515) $ 2,373 $ (962) Foreign currency forward contracts Other expense (income), net (89) — (312) 5 Total loss (gain) $ 2,429 $ (515) $ 2,061 $ (957)

Fair value measurements

Fair value measurements	6 Months Ended
	Jan. 31, 2023
Fair Value Disclosures [Abstract]
Fair value measurements	Fair value measurements The Company applies a fair value hierarchy pursuant to ASC Topic 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 agreements are 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 January 31, 2023, 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 contract $ — $ 607 $ — $ 607 Deferred compensation plan asset — 2,308 — 2,308 Liabilities Interest rate swap contract $ — $ 1,537 $ — $ 1,537 Deferred compensation liability — 2,879 — 2,879 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	6 Months Ended
	Jan. 31, 2023
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 enters into commitments to purchase barrels for each harvest, a significant portion of which are settled in Euros. As of July 31, 2022, the Company had $8.8 million in barrel purchase commitments. During the six months ended January 31, 2023, the Company paid the remaining commitments and liabilities associated with the barrel purchases for the 2022 harvest. As of January 31, 2023, the Company does not yet have any commitments for the 2023 harvest. 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, generally aligning settlement dates with expected barrel deliveries and the anticipated timing of 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 January 31, 2023, 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 January 31, 2023 and July 31, 2022, no amounts have been accrued related to such indemnification provisions.

Equity-based compensation

Equity-based compensation	6 Months Ended
	Jan. 31, 2023
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 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 six months ended January 31, 2023 was $4.9 million. Restricted shares The following table represents restricted share 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 January 31, 2023 — $ — 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 The following table represents the stock option activity: 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 (2,586) 15.00 Forfeited (118,237) 16.94 Expired (39,599) 17.25 Outstanding at January 31, 2023 2,463,167 $ 15.99 8.8 $ 3,079 Exercisable as of January 31, 2023 336,673 $ 17.13 8.2 The Company recognized equity compensation expense related to the 2021 Plan stock options in selling, general and administrative expenses and capitalized a portion into inventories on the Condensed Consolidated Statements of Financial Position, as applicable, due to units vesting over their requisite service periods. Total recognized equity compensation expense related to the 2021 Plan stock options was $0.8 million and $0.5 million for the three months ended January 31, 2023 and 2022, respectively, and $1.3 million and $1.0 million for the six months ended January 31, 2023 and 2022, respectively. The total unrecognized compensation expense related to the 2021 Plan stock options was $9.5 million as of January 31, 2023, which is expected to be recognized over a weighted-average period of 3.1 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 six months ended January 31, 2023: Six months ended January 31, 2023 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 382,985 14.56 Vested (22,333) 20.24 Forfeited (39,414) 16.94 Unvested as of January 31, 2023 735,847 $ 15.81 The Company recognized equity compensation expense related to the 2021 Plan RSUs in selling, general and administrative expenses and capitalized a portion into inventories on the Condensed Consolidated Statements of Financial Position, as applicable, due to units vesting over their requisite service periods, of $0.9 million and $0.8 million, respectively, for the three months ended January 31, 2023 and 2022 and $1.6 million and $1.6 million for the six months ended January 31, 2023 and 2022, respectively. The total unrecognized compensation expense related to the 2021 Plan RSUs was $9.4 million as of January 31, 2023, which is expected to be recognized over a weighted-average period of 2.8 years. Employee Stock Purchase Plan

Earnings per share

Earnings per share	6 Months Ended
	Jan. 31, 2023
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 January 31, Six months ended January 31, (in thousands, except share and per share amounts) 2023 2022 2023 2022 Numerator: Net income attributable to $ 14,917 $ 17,932 $ 34,732 $ 39,205 Denominator: Weighted average number of shares outstanding for basic per share calculation 115,191,575 115,049,395 115,187,868 115,048,094 Effect of dilutive potential shares (a) : Stock options — 145,990 — 158,261 Restricted stock awards 136,085 194,117 236,941 184,656 Adjusted weighted average shares outstanding for diluted per share calculation 115,327,660 115,389,502 115,424,809 115,391,011 Earnings per share attributable to Basic $ 0.13 $ 0.16 $ 0.30 $ 0.34 Diluted $ 0.13 $ 0.16 $ 0.30 $ 0.34 ______________________________________ (a) Calculated using the treasury stock method. For the three months ended January 31, 2023 and 2022, there were 0.6 million and 0.1 million incremental common shares issuable upon the exercise of certain stock options, respectively, that were not included in the calculation of diluted EPS because the effect of their inclusion would have been antidilutive under the treasury stock method. For the six months ended January 31, 2023 and 2022, there were 0.5 million and 0.1 million incremental common shares issuable upon the exercise of certain stock options, respectively, that were not included in the calculation of diluted EPS because the effect of their inclusion would have been antidilutive under the treasury stock method. Refer to Note 11 (Equity-based compensation) for the terms of the awards.

Income taxes

Income taxes	6 Months Ended
	Jan. 31, 2023
Income Tax Disclosure [Abstract]
Income taxes	Income taxes Income tax expense was $5.3 million and $12.4 million, with an effective tax rate of 26.1% and 26.2% for the three and six months ended January 31, 2023, respectively, compared to $6.4 million and $13.8 million, with an effective tax rate of 26.3% and 26.0% for the three and six months ended January 31, 2022, respectively. 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	6 Months Ended
	Jan. 31, 2023
Subsequent Events [Abstract]
Subsequent events	Subsequent eventsEffective February 6, 2023, the Company entered into the First Amendment to the Amended and Restated First Lien Loan and Security Agreement. The changes in the amendment are administrative in nature and do not have a material impact on the Company's outstanding debt or related debt covenants. The amendment did not result in any additional cash proceeds or changes in commitment amounts.

Basis of presentation and rec_2

Basis of presentation and recent accounting pronouncements (Policies)	6 Months Ended
	Jan. 31, 2023
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 Condensed Consolidated Statement of Financial Position as of July 31, 2022 was derived from the Company's audited financial statements for the fiscal year ended July 31, 2022, previously filed with the SEC. The Condensed Consolidated Financial Statements do not include all of the information and note disclosures required by U.S. GAAP and should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal 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 Topic 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. The Company adopted the standard effective August 1, 2022, the first day of Fiscal 2023. The adoption of the standard did not have a material impact on the Condensed Consolidated Financial Statements or the related disclosures. 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 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 January 31, 2023 have had, or are expected to have, a material impact on the Condensed Consolidated Financial Statements or the related disclosures.
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 January 31, 2023 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.
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.
Fair value measurements	The Company applies a fair value hierarchy pursuant to ASC Topic 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 agreements are 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)	6 Months Ended
	Jan. 31, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue	The following table presents the percentages of consolidated net sales disaggregated by sales channels: Three months ended January 31, Six months ended January 31, 2023 2022 2023 2022 Wholesale - Distributors 61.3 % 67.2 % 69.0 % 67.9 % Wholesale - California direct to trade (a) 19.1 19.8 17.4 18.1 DTC (b) 19.6 13.0 13.6 14.0 Net sales 100.0 % 100.0 % 100.0 % 100.0 % ________________________________________________ (a) Includes $0.6 million of sales related to bulk and grape sales for the six months ended January 31, 2023, and $0.5 million and $2.8 million for the three and six months ended January 31, 2022, respectively. (b) Includes shipping and handling revenue of $0.9 million and $1.0 million for the three and six months ended January 31, 2023, respectively, and $0.4 million and $0.9 million for the three and six months ended January 31, 2022, respectively.

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jan. 31, 2023
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories were comprised of the following: (in thousands) January 31, July 31, Finished goods $ 91,142 $ 108,989 Work in progress 232,227 162,337 Raw materials 3,655 14,104 Inventories $ 327,024 $ 285,430

Property and equipment, net (Ta

Property and equipment, net (Tables)	6 Months Ended
	Jan. 31, 2023
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment, net was comprised of the following: (in thousands) January 31, July 31, Land $ 136,328 $ 136,328 Buildings and improvements 70,847 70,813 Machinery and equipment 53,160 52,619 Vineyards and improvements 44,866 44,759 Barrels 37,185 30,067 Total depreciable property and equipment 342,386 334,586 Less: accumulated depreciation and amortization (77,898) (70,591) Total depreciable property and equipment, net 264,488 263,995 Construction in progress 6,729 5,664 Property and equipment, net $ 271,217 $ 269,659

Accrued expenses (Tables)

Accrued expenses (Tables)	6 Months Ended
	Jan. 31, 2023
Payables and Accruals [Abstract]
Schedule of Accrued Expenses	Accrued expenses were comprised of the following: (in thousands) January 31, July 31, Trade spend (a) $ 17,477 $ 15,319 Accrued professional fees 3,903 3,191 Deferred compensation liability (b) 2,879 2,142 Income taxes payable 1,730 387 Bulk wine and other received not invoiced 882 143 Barrel purchases — 988 Accrued invoices and other accrued expenses 2,200 7,305 Accrued expenses $ 29,071 $ 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 to partially settle its deferred compensation plan liability. The cash surrender value of the life insurance policies was $2.3 million and $1.8 million at January 31, 2023 and July 31, 2022, respectively, and is included in other long-term assets on the Condensed Consolidated Statements of Financial Position.

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jan. 31, 2023
Debt Disclosure [Abstract]
Schedule of Long-Term Debt Instruments	Long-term debt, net was comprised of the following: (in thousands) January 31, 2023 July 31, 2022 Revolving line of credit $ — $ 110,000 Term loan, first lien 225,832 110,117 Capital expenditure loan (a) — 5,049 Total debt 225,832 225,166 Less: Current maturities of long-term debt (9,721) (9,810) Total long-term debt 216,111 215,356 Debt issuance costs (b) (478) (1,608) Total long-term debt, net of current maturities and debt issuance costs $ 215,633 $ 213,748 _______________________________________________ (a) The capital expenditure loan under the Original Credit Agreement was replaced as part of the refinancing and execution of the New Credit Agreement. Under the New Credit Facility, the intent of the delayed draw term loan is similar to that of the capital expenditure loan under the Original Credit Agreement. The delayed draw term loan is secured by certain capital expenditures. As of January 31, 2023, the Company has not drawn on the delayed draw term loan. (b) At January 31, 2023, debt issuance costs are the costs associated with the term loan facility. Debt issuance costs of $3.0 million associated with the revolving credit and delayed draw term loan facilities are recorded in other long-term assets on the Condensed Consolidated Statements of Financial Position. Under the Original Credit Facility, the revolving credit facility debt issuance costs were treated consistently with those of the term debt facilities as the Company did not intend to repay the revolving credit facility in full prior to its maturity.

Derivative instruments (Tables)

Derivative instruments (Tables)	6 Months Ended
	Jan. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Interest Rate Derivatives	As of January 31, 2023, 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 $100,000 3.735% January 4, 2023 November 4, 2027
Schedule of Derivative Instruments	The total notional amounts of the Company’s derivative instruments outstanding are as follows: (in thousands) January 31, July 31, Derivative instruments not designated as hedging instruments Interest rate swap contracts $ 200,000 $ 100,000 Foreign currency forward contracts 1,010 2,793 Total derivative instruments not designated as hedging instruments $ 201,010 $ 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 for January 31, 2023 were as follows: (in thousands) Derivative Assets Derivative Liabilities Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Interest rate swap contracts Prepaid expenses and other current assets $ 607 Derivative instrument $ 1,537 Foreign currency forward contracts Prepaid expenses and other current assets 89 Other current liabilities — Total derivatives not designated as hedging instruments $ 696 $ 1,537 The estimated fair value and classification of derivative instruments on the accompanying Condensed Consolidated Statements of Financial Position for July 31, 2022 were as follows: (in thousands) Derivative Assets Derivative Liabilities Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Interest rate swap contracts Prepaid expenses and other current assets $ 1,443 Derivative instrument $ — Foreign currency forward contracts Prepaid expenses and other current assets — Other current liabilities 223 Total derivatives not designated as hedging instruments $ 1,443 $ 223
Schedule of 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 January 31, Six months ended January 31, (in thousands) Classification 2023 2022 2023 2022 Interest rate swap contracts Other expense (income), net $ 2,518 $ (515) $ 2,373 $ (962) Foreign currency forward contracts Other expense (income), net (89) — (312) 5 Total loss (gain) $ 2,429 $ (515) $ 2,061 $ (957)

Fair value measurements (Tables

Fair value measurements (Tables)	6 Months Ended
	Jan. 31, 2023
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 January 31, 2023, 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 contract $ — $ 607 $ — $ 607 Deferred compensation plan asset — 2,308 — 2,308 Liabilities Interest rate swap contract $ — $ 1,537 $ — $ 1,537 Deferred compensation liability — 2,879 — 2,879 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)	6 Months Ended
	Jan. 31, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of Restricted Shares Activity	The following table represents restricted share 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 January 31, 2023 — $ —
Schedule of Share-based Payment Arrangement, Option, Activity	The following table represents the stock option activity: 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 (2,586) 15.00 Forfeited (118,237) 16.94 Expired (39,599) 17.25 Outstanding at January 31, 2023 2,463,167 $ 15.99 8.8 $ 3,079 Exercisable as of January 31, 2023 336,673 $ 17.13 8.2
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 six months ended January 31, 2023: Six months ended January 31, 2023 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.
Schedule of 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 382,985 14.56 Vested (22,333) 20.24 Forfeited (39,414) 16.94 Unvested as of January 31, 2023 735,847 $ 15.81

Earnings per share (Tables)

Earnings per share (Tables)	6 Months Ended
	Jan. 31, 2023
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 January 31, Six months ended January 31, (in thousands, except share and per share amounts) 2023 2022 2023 2022 Numerator: Net income attributable to $ 14,917 $ 17,932 $ 34,732 $ 39,205 Denominator: Weighted average number of shares outstanding for basic per share calculation 115,191,575 115,049,395 115,187,868 115,048,094 Effect of dilutive potential shares (a) : Stock options — 145,990 — 158,261 Restricted stock awards 136,085 194,117 236,941 184,656 Adjusted weighted average shares outstanding for diluted per share calculation 115,327,660 115,389,502 115,424,809 115,391,011 Earnings per share attributable to Basic $ 0.13 $ 0.16 $ 0.30 $ 0.34 Diluted $ 0.13 $ 0.16 $ 0.30 $ 0.34 ______________________________________ (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	6 Months Ended
	Nov. 30, 2021	Oct. 31, 2021	Jan. 31, 2022
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			$ 0.6

Basis of presentation and rec_3

Basis of presentation and recent accounting pronouncements (Details) - USD ($) $ / shares in Units, $ in Millions	6 Months Ended	12 Months Ended
	Jan. 31, 2023	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, Primary Beneficiary
Accounting Policies [Line Items]
Variable interest entity, ownership percentage	76.20%	76.20%
Variable interest entity, net assets	$ 2.3	$ 2.4

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2023	Jan. 31, 2022
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, percent	100%	100%	100%	100%
Revenue	$ 103,488	$ 98,736	$ 211,659	$ 202,917
Bulk and Grape Sales
Disaggregation of Revenue [Line Items]
Revenue		500	600	2,800
Shipping and Handling
Disaggregation of Revenue [Line Items]
Revenue	$ 900	$ 400	$ 1,000	$ 900
Wholesale - Distributors
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, percent	61.30%	67.20%	69%	67.90%
Wholesale - California direct to trade
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, percent	19.10%	19.80%	17.40%	18.10%
DTC
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, percent	19.60%	13%	13.60%	14%

Revenue - Narrative (Details)

Revenue - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jan. 31, 2023	Jan. 31, 2023	Jul. 31, 2022
Revenue from Contract with Customer [Abstract]
Allowance for credit losses on current accounts receivable	$ 400	$ 400	$ 400
Deferred revenue	3,285	3,285	$ 272
Revenue recognized	$ 12,100	$ 300

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Jan. 31, 2023	Jul. 31, 2022
Inventory Disclosure [Abstract]
Finished goods	$ 91,142	$ 108,989
Work in progress	232,227	162,337
Raw materials	3,655	14,104
Inventories	$ 327,024	$ 285,430

Inventories - Narrative (Detail

Inventories - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2023	Jan. 31, 2022	Jul. 31, 2022
Inventory Disclosure [Abstract]
Excess and obsolete inventory reserve	$ 0.4		$ 0.4		$ 5.1
Inventory, capitalized costs incurred	5.2	$ 4	8.6	$ 6.6
Capitalized leases costs used in production of inventory	$ 1.1	$ 1.1	$ 2.2	$ 2.1

Property and equipment, net - S

Property and equipment, net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Jan. 31, 2023	Jul. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, net	$ 271,217	$ 269,659
Depreciable Property and Equipment
Property, Plant and Equipment [Line Items]
Total depreciable property and equipment	342,386	334,586
Less: accumulated depreciation and amortization	(77,898)	(70,591)
Property and equipment, net	264,488	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	53,160	52,619
Vineyards and improvements
Property, Plant and Equipment [Line Items]
Total depreciable property and equipment	44,866	44,759
Barrels
Property, Plant and Equipment [Line Items]
Total depreciable property and equipment	37,185	30,067
Construction in progress
Property, Plant and Equipment [Line Items]
Total depreciable property and equipment	$ 6,729	$ 5,664

Property and equipment, net - N

Property and equipment, net - Narrative (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jan. 31, 2023 USD ($)	Jan. 31, 2022 USD ($) plan	Jan. 31, 2023 USD ($)	Jan. 31, 2022 USD ($)
Property, Plant and Equipment [Abstract]
Depreciation	$ 0.5	$ 0.3	$ 0.9	$ 0.7
Number of vineyards purchased | plan		3
Acquisition price		$ 14.5

Accrued expenses - Components (

Accrued expenses - Components (Details) - USD ($) $ in Thousands	Jan. 31, 2023	Jul. 31, 2022
Payables and Accruals [Abstract]
Trade spend	$ 17,477	$ 15,319
Accrued professional fees	3,903	3,191
Deferred compensation liability	2,879	2,142
Income taxes payable	1,730	387
Bulk wine and other received not invoiced	882	143
Barrel purchases	0	988
Accrued invoices and other accrued expenses	2,200	7,305
Accrued expenses	$ 29,071	$ 29,475

Accrued expenses - Narrative (D

Accrued expenses - Narrative (Details) - USD ($) $ in Millions	Jan. 31, 2023	Jul. 31, 2022
Payables and Accruals [Abstract]
Cash surrender value of life insurance	$ 2.3	$ 1.8

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($)		3 Months Ended		6 Months Ended
	Nov. 04, 2022	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2023	Jan. 31, 2022
Debt Instrument [Line Items]
Amortization of debt issuance costs		$ 200,000	$ 400,000	$ 593,000	$ 804,000
First Lien Senior Secured Credit Facilities
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 675,800,000
First Lien Senior Secured Credit Facilities | Maximum
Debt Instrument [Line Items]
Debt capitalization ratio	0.55
First Lien Senior Secured Credit Facilities | Minimum
Debt Instrument [Line Items]
Debt capitalization ratio	1.15
First Lien Senior Secured Credit Facilities | Less Than or Equal to 33% of Average Availability | SOFR
Debt Instrument [Line Items]
Loan margin (percent)	1.50%
First Lien Senior Secured Credit Facilities | Greater Than 33% and Less Than or Equal to 66% of Average Availability | SOFR
Debt Instrument [Line Items]
Loan margin (percent)	1.25%
First Lien Senior Secured Credit Facilities | Greater Than 66% of Average Availability | SOFR
Debt Instrument [Line Items]
Loan margin (percent)	1%
Secured Debt | Term Loan Tranche One Facility
Debt Instrument [Line Items]
Debt, face amount	$ 135,000,000
Secured Debt | Term Loan Tranche Two Facility
Debt Instrument [Line Items]
Debt, face amount	25,000,000
Secured Debt | Capital Expenditure Loan
Debt Instrument [Line Items]
Debt, face amount	25,000,000
Senior Secured Credit Facility
Debt Instrument [Line Items]
Incremental facility	400,000,000
Debt issuance costs		3,300,000		3,300,000
Capitalized debt issuance costs		2,400,000		2,400,000
Debt issuance costs expensed				900,000
Revolving Line of Credit
Debt Instrument [Line Items]
Unused capacity		425,000,000		425,000,000
Additional borrowing capacity		30,000,000		30,000,000
Revolving Line of Credit | First Lien Senior Secured Credit Facilities
Debt Instrument [Line Items]
Maximum borrowing capacity	425,000,000
Letter of Credit Sub-Facility
Debt Instrument [Line Items]
Line of credit		0		0
Term Loan Facility | First Lien Senior Secured Credit Facilities
Debt Instrument [Line Items]
Maximum borrowing capacity	225,800,000
Delayed Draw Term Loan Facility | First Lien Senior Secured Credit Facilities
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 25,000,000
Swingline Sub-Facility
Debt Instrument [Line Items]
Line of credit		$ 0		$ 0
Term Loan and Delayed Draw Term Loan Facilities | First Lien Senior Secured Credit Facilities | SOFR
Debt Instrument [Line Items]
Loan margin (percent)	1.625%
Term Loan and Delayed Draw Term Loan Facilities | First Lien Senior Secured Credit Facilities | SOFR | Variable Rate Component One
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	0.10%
Term Loan and Delayed Draw Term Loan Facilities | First Lien Senior Secured Credit Facilities | SOFR | Variable Rate Component Two
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	0.15%

Debt - Schedule of Long Term De

Debt - Schedule of Long Term Debt (Details) - USD ($) $ in Thousands	Jan. 31, 2023	Jul. 31, 2022
Line of Credit Facility [Line Items]
Long-term debt, gross	$ 225,832	$ 225,166
Less: Current maturities of long-term debt	(9,721)	(9,810)
Total long-term debt	216,111	215,356
Total long-term debt, net of current maturities and debt issuance costs	215,633	213,748
Revolving Credit and Delayed Draw Term Loan
Line of Credit Facility [Line Items]
Debt issuance costs	(3,000)
Line of Credit | Revolving Line of Credit
Line of Credit Facility [Line Items]
Long-term debt, gross	0	110,000
Secured Debt | Term Loan Facility
Line of Credit Facility [Line Items]
Long-term debt, gross	225,832	110,117
Debt issuance costs	(478)	(1,608)
Capital Expenditure Loan
Line of Credit Facility [Line Items]
Long-term debt, gross	$ 0	$ 5,049

Derivative instruments - Narrat

Derivative instruments - Narrative (Details) - USD ($)	Jan. 31, 2023	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) $ in Thousands	Jan. 31, 2023 USD ($)
Interest Rate Swap Expiring March 2023
Derivative [Line Items]
Notional amount	$ 100,000
Interest rate (percent)	0.315%
Interest Rate Swap Expiring November 2027
Derivative [Line Items]
Notional amount	$ 100,000
Interest rate (percent)	3.735%

Derivative instruments - Total

Derivative instruments - Total Notional Amount (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands	Jan. 31, 2023	Jul. 31, 2022
Derivative [Line Items]
Notional amount	$ 201,010	$ 102,793
Interest rate swap contracts
Derivative [Line Items]
Notional amount	200,000	100,000
Foreign currency forward contracts
Derivative [Line Items]
Notional amount	$ 1,010	$ 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	Jan. 31, 2023	Jul. 31, 2022
Derivatives, Fair Value [Line Items]
Derivative asset	$ 696	$ 1,443
Derivative liability	1,537	223
Interest rate swap contracts | Prepaid expenses and other current assets
Derivatives, Fair Value [Line Items]
Derivative asset	607	1,443
Interest rate swap contracts | Derivative instrument
Derivatives, Fair Value [Line Items]
Derivative liability	1,537	0
Foreign currency forward contracts | Prepaid expenses and other current assets
Derivatives, Fair Value [Line Items]
Derivative asset	89	0
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		6 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2023	Jan. 31, 2022
Derivative [Line Items]
Total (gain) loss			$ 2,061	$ (957)
Not Designated as Hedging Instrument
Derivative [Line Items]
Total (gain) loss	$ 2,429	$ (515)	2,061	(957)
Interest rate swap contracts | Not Designated as Hedging Instrument
Derivative [Line Items]
Total (gain) loss	2,518	(515)	2,373	(962)
Foreign currency forward contracts | Not Designated as Hedging Instrument
Derivative [Line Items]
Total (gain) loss	$ (89)	$ 0	$ (312)	$ 5

Fair value measurements - Asset

Fair value measurements - Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Jan. 31, 2023	Jul. 31, 2022
Assets
Deferred compensation plan asset	$ 2,308	$ 1,753
Liabilities
Deferred compensation liability	2,879	2,142
Interest rate swap contracts
Assets
Derivative asset	607	1,443
Liabilities
Derivative liability	1,537
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
Liabilities
Derivative liability	0
Quoted prices in active markets (Level 1) | Foreign currency forward contracts
Liabilities
Derivative liability		0
Significant other observable inputs (Level 2)
Assets
Deferred compensation plan asset	2,308	1,753
Liabilities
Derivative liability	1,537
Deferred compensation liability	2,879	2,142
Significant other observable inputs (Level 2) | Interest rate swap contracts
Assets
Derivative asset	607	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
Derivative liability	0
Deferred compensation liability	0	0
Significant unobservable inputs (Level 3) | Interest rate swap contracts
Assets
Derivative asset	$ 0	0
Significant unobservable inputs (Level 3) | Foreign currency forward contracts
Liabilities
Derivative liability		$ 0

Commitments and contingencies -

Commitments and contingencies - Narrative (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jan. 31, 2023	Jul. 31, 2022
Commitments and Contingencies [Line Items]
Purchase commitment, remaining amount committed		$ 8.8
Indemnification Agreement
Commitments and Contingencies [Line Items]
Accruals relating to indemnification provisions	$ 0	0
Inventories
Commitments and Contingencies [Line Items]
Long-term purchase commitment, amount purchased, cost	$ 71	$ 68.1
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		6 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2023	Jan. 31, 2022	Mar. 31, 2021
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grants (in shares)	1,250,509		1,250,509
Share-based payment arrangement, expense	$ 0		$ 0.1
Unrecognized compensation expense	0		0
2016 Equity Plan | Restricted shares
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 (in shares)					14,003,560
Unrecognized compensation expense of stock options	9.5		9.5
2021 Equity Incentive Plan | Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment arrangement, expense	0.8	$ 0.5	$ 1.3	$ 1
Unrecognized compensation expense, period for recognition (years)			3 years 1 month 6 days
2021 Equity Incentive Plan | RSU
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment arrangement, expense	0.9	$ 0.8	$ 1.6	$ 1.6
Unrecognized compensation expense, period for recognition (years)			2 years 9 months 18 days
Unrecognized compensation expense	$ 9.4		$ 9.4

Equity-based compensation - Act

Equity-based compensation - Activity for Awards (Details)	6 Months Ended
	Jan. 31, 2023 $ / shares shares
Restricted shares | 2016 Equity Plan
Number of units
Unvested, beginning (in shares) | shares	266,158
Granted (in 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 (in shares) | shares	382,985
Vested (in shares) | shares	(22,333)
Forfeited (in shares) | shares	(39,414)
Unvested, ending (in shares) | shares	735,847
Weighted-average grant-date fair value
Unvested, beginning (in dollars per share) | $ / shares	$ 17.32
Granted (in dollars per share) | $ / shares	14.56
Vested (in dollars per share) | $ / shares	20.24
Forfeited (in dollars per share) | $ / shares	16.94
Unvested, ending (in dollars per share) | $ / shares	$ 15.81

Equity-based compensation - Sto

Equity-based compensation - Stock Option Activity (Details) - 2021 Equity Incentive Plan - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jan. 31, 2023	Jul. 31, 2022
Number of options
Outstanding, beginning (in shares)	1,555,610
Granted (in shares)	1,067,979
Exercised (in shares)	(2,586)
Forfeited (in shares)	(118,237)
Expired (in shares)	(39,599)
Outstanding, ending (in shares)	2,463,167	1,555,610
Exercisable (shares)	336,673
Weighted-average exercise price
Outstanding, beginning (in dollars per share)	$ 17.15
Granted (in dollars per share)	14.43
Exercised (in dollars per share)	15
Forfeited (in dollars per share)	16.94
Expired (in dollars per share)	17.25
Outstanding, ending (in dollars per share)	15.99	$ 17.15
Exercisable (in dollars per share)	$ 17.13
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Outstanding, weighted-average remaining contractual life (in years)	8 years 9 months 18 days	8 years 8 months 12 days
Exercisable, weighted-average remaining contractual life (in years)	8 years 2 months 12 days
Aggregate intrinsic value	$ 3,079	$ 3,847
Exercisable, aggregate intrinsic value

Equity-based compensation - Val

Equity-based compensation - Valuation Assumptions (Details) - 2021 Equity Incentive Plan - Stock options	6 Months Ended
	Jan. 31, 2023 $ / shares
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

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		6 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2023	Jan. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Numerator: Net income attributable to The Duckhorn Portfolio, Inc.	$ 14,917	$ 17,932	$ 34,732	$ 39,205
Denominator:
Weighted average number of shares outstanding for basic per share calculation (in shares)	115,191,575	115,049,395	115,187,868	115,048,094
Adjusted weighted average shares outstanding for diluted per share calculation (in shares)	115,327,660	115,389,502	115,424,809	115,391,011
Earnings per share attributable to The Duckhorn Portfolio, Inc.
Basic (in dollars per share)	$ 0.13	$ 0.16	$ 0.30	$ 0.34
Diluted (in dollars per share)	$ 0.13	$ 0.16	$ 0.30	$ 0.34
Stock options
Denominator:
Effect of dilutive potential shares (in shares)	0	145,990	0	158,261
Restricted stock awards
Denominator:
Effect of dilutive potential shares (in shares)	136,085	194,117	236,941	184,656
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares (in shares)	600,000	100,000	500,000	100,000

Income taxes (Details)

Income taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2023	Jan. 31, 2022
Income Tax Disclosure [Abstract]
Income tax expense	$ 5,265	$ 6,407	$ 12,352	$ 13,784
Effective income tax rate, percent	26.10%	26.20%	26.30%	26%