The Duckhorn Portfolio, Inc. (NAPA) 10-Q 8 Jun 23 2023 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Apr. 30, 2023	Jun. 01, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 30, 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		115,293,780
Entity Central Index Key	0001835256
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false
Current Fiscal Year End Date	--07-31

Condensed Consolidated Statemen

Condensed Consolidated Statements of Financial Position - USD ($) $ in Thousands	Apr. 30, 2023	Jul. 31, 2022
Current assets:
Cash	$ 36,077	$ 3,167
Accounts receivable trade, net	43,274	37,026
Inventories	327,313	285,430
Prepaid expenses and other current assets	10,929	13,898
Total current assets	417,593	339,521
Long-term assets
Property and equipment, net	267,474	269,659
Operating lease right-of-use assets	20,875	23,375
Intangible assets, net	186,116	191,786
Goodwill	425,209	425,209
Other long-term assets	5,286	1,963
Total long-term assets	904,960	911,992
Total assets	1,322,553	1,251,513
Current liabilities:
Accounts payable	2,914	3,382
Accrued expenses	31,909	29,475
Accrued compensation	12,063	12,893
Deferred revenue	13,156	272
Current operating lease liabilities	3,647	3,498
Current maturities of long-term debt	9,721	9,810
Other current liabilities	3,214	672
Total current liabilities	76,624	60,002
Long-term liabilities
Revolving line of credit, net	0	108,674
Long-term debt, net of current maturities and debt issuance costs	213,158	105,074
Operating lease liabilities	17,117	19,732
Deferred income taxes	90,483	90,483
Other long-term liabilities	2,217	387
Total long-term liabilities	322,975	324,350
Total liabilities	399,599	384,352
Commitments and contingencies (Note 10)
Stockholders' equity:
Common stock, $0.01 par value; 500,000,000 shares authorized; 115,293,780 issued and outstanding at April 30, 2023 and 115,184,161 issued and outstanding at July 31, 2022	1,153	1,152
Additional paid-in capital	735,871	731,597
Retained earnings	185,353	133,824
Total The Duckhorn Portfolio, Inc. stockholders' equity	922,377	866,573
Non-controlling interest	577	588
Total stockholders' equity	922,954	867,161
Total liabilities and stockholders' equity	$ 1,322,553	$ 1,251,513

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Financial Position (Parenthetical) - $ / shares	Apr. 30, 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)	115,293,780	115,184,161
Common stock, shares outstanding (in shares)	115,293,780	115,184,161

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Income Statement [Abstract]
Net sales (net of excise taxes of $1,126, $1,072, $4,179 and $4,056, respectively)	$ 91,242	$ 91,584	$ 302,901	$ 294,501
Cost of sales	40,731	47,622	142,494	148,652
Gross profit	50,511	43,962	160,407	145,849
Selling, general and administrative expenses	23,989	23,126	79,307	70,178
Income from operations	26,522	20,836	81,100	75,671
Interest expense	2,993	1,618	7,839	4,860
Other expense (income), net	729	(1,046)	3,385	(2,477)
Total other expenses, net	3,722	572	11,224	2,383
Income before income taxes	22,800	20,264	69,876	73,288
Income tax expense	6,006	4,699	18,358	18,483
Net income	16,794	15,565	51,518	54,805
Less: Net loss (income) attributable to non-controlling interest	3	0	11	(35)
Net income attributable to The Duckhorn Portfolio, Inc.	$ 16,797	$ 15,565	$ 51,529	$ 54,770
Net income per share of common stock:
Basic (in dollars per share)	$ 0.15	$ 0.14	$ 0.45	$ 0.48
Diluted (in dollars per share)	$ 0.15	$ 0.14	$ 0.45	$ 0.47
Weighted average shares of common stock outstanding:
Basic (in shares)	115,255,671	115,115,850	115,209,972	115,070,183
Diluted (in shares)	115,367,455	115,281,724	115,425,034	115,347,808

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Income Statement [Abstract]
Excise taxes	$ 1,126	$ 1,072	$ 4,179	$ 4,056

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Total The Duckhorn Portfolio, Inc. stockholders' 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)	54,805	54,770			54,770	35
Issuance of common stock under equity incentive plans (in shares)			172,690
Issuance of common stock under equity incentive plans	1	1	$ 3	(2)
Equity-based compensation (Note 11)	4,240	4,240		4,240
Taxes paid related to net share settlement of equity awards (in shares)			(51,720)
Taxes paid related to net share settlement of equity awards	(839)	(839)	$ (1)	(838)
Initial public offering, net of issuance costs	(270)	(270)		(270)
Ending balance (in shares) at Apr. 30, 2022			115,167,763
Ending balance at Apr. 30, 2022	860,175	859,589	$ 1,152	730,033	128,404	586
Beginning balance (in shares) at Jan. 31, 2022			115,065,210
Beginning balance at Jan. 31, 2022	844,084	843,498	$ 1,151	729,508	112,839	586
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	15,565	15,565			15,565	0
Issuance of common stock under equity incentive plans (in shares)			154,273
Issuance of common stock under equity incentive plans	0		$ 2	(2)
Equity-based compensation (Note 11)	1,365	1,365		1,365
Taxes paid related to net share settlement of equity awards (in shares)			(51,720)
Taxes paid related to net share settlement of equity awards	(839)	(839)	$ (1)	(838)
Ending balance (in shares) at Apr. 30, 2022			115,167,763
Ending balance at Apr. 30, 2022	$ 860,175	859,589	$ 1,152	730,033	128,404	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)	51,518	51,529			51,529	(11)
Issuance of common stock under equity incentive plans (in shares)			138,839
Issuance of common stock under equity incentive plans	1	1	$ 1
Issuance of employee stock purchase plan (in shares)			12,870
Issuance of employee stock purchase plan	181	181		181
Equity-based compensation (Note 11)	4,741	4,741		4,741
Taxes paid related to net share settlement of equity awards (in shares)			(42,090)
Taxes paid related to net share settlement of equity awards	$ (648)	(648)		(648)
Ending balance (in shares) at Apr. 30, 2023	115,293,780		115,293,780
Ending balance at Apr. 30, 2023	$ 922,954	922,377	$ 1,153	735,871	185,353	577
Beginning balance (in shares) at Jan. 31, 2023			115,219,396
Beginning balance at Jan. 31, 2023	905,051	904,471	$ 1,152	734,763	168,556	580
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	16,794	16,797			16,797	(3)
Issuance of common stock under equity incentive plans (in shares)			116,474
Issuance of common stock under equity incentive plans	1	1	$ 1
Equity-based compensation (Note 11)	1,756	1,756		1,756
Taxes paid related to net share settlement of equity awards (in shares)			(42,090)
Taxes paid related to net share settlement of equity awards	$ (648)	(648)		(648)
Ending balance (in shares) at Apr. 30, 2023	115,293,780		115,293,780
Ending balance at Apr. 30, 2023	$ 922,954	$ 922,377	$ 1,153	$ 735,871	$ 185,353	$ 577

Condensed Consolidated Statem_6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Apr. 30, 2023	Apr. 30, 2022
Cash flows from operating activities
Net income	$ 51,518	$ 54,805
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	20,528	17,345
Loss on disposal of assets	75	12
Change in fair value of derivatives	2,943	(1,947)
Amortization of debt issuance costs	774	1,206
Equity-based compensation	4,741	4,240
Change in operating assets and liabilities:
Accounts receivable trade, net	(6,248)	(5,851)
Inventories	(39,278)	(24,340)
Prepaid expenses and other current assets	1,633	1,767
Other long-term assets	(508)	(46)
Accounts payable	(352)	1,535
Accrued expenses	3,681	4,550
Accrued compensation	(831)	(5,820)
Deferred revenue	12,884	425
Other current and long-term liabilities	193	(26)
Net cash provided by operating activities	51,753	47,855
Cash flows from investing activities
Purchases of property and equipment, net of sales proceeds	(14,111)	(24,798)
Net cash used in investing activities	(14,111)	(24,798)
Cash flows from financing activities
Payments under line of credit	(119,000)	(77,000)
Borrowings under line of credit	9,000	68,000
Issuance of long-term debt	225,833	0
Payments of long-term debt	(117,666)	(8,538)
Taxes paid related to net share settlement of equity awards	(648)	(839)
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 financing activities	(4,732)	(18,647)
Net increase in cash	32,910	4,410
Cash - Beginning of period	3,167	4,244
Cash - End of period	36,077	8,654
Supplemental cash flow information
Interest paid, net of amount capitalized	4,421	3,726
Income taxes paid	10,921	13,923
Non-cash investing activities
Property and equipment additions in accounts payable and accrued expenses	$ 332	$ 507

Description of business

Description of business	9 Months Ended
	Apr. 30, 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, produce 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 offerings In April 2023, the Company completed a secondary offering where certain existing stockholders sold 6,000,000 shares of common stock at a price of $15.35 per share. 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 $0.4 million during the three and nine months ended April 30, 2023, which are reflected in selling, general and administrative expenses on the Condensed Consolidated Statement of Operations. 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 nine months ended April 30, 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	9 Months Ended
	Apr. 30, 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 April 30, 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 April 30, 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 April 30, 2023 have had, or are expected to have, a material impact on the Condensed Consolidated Financial Statements or the related disclosures.

Revenue

Revenue	9 Months Ended
	Apr. 30, 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 April 30, Nine months ended April 30, 2023 2022 2023 2022 Wholesale - Distributors 68.6 % 62.0 % 68.9 % 66.0 % Wholesale - California direct to trade (a) 17.5 16.6 17.4 17.6 DTC (b) 13.9 21.4 13.7 16.4 Net sales 100.0 % 100.0 % 100.0 % 100.0 % _______________________________________________ (a) Includes $0.7 million of sales related to bulk and grape sales for the nine months ended April 30, 2023, and $0.1 million and $2.9 million for the three and nine months ended April 30, 2022, respectively. (b) Includes shipping and handling revenue of $0.3 million and $1.4 million for the three and nine months ended April 30, 2023, respectively, and $1.0 million and $2.0 million for the three and nine months ended April 30, 2022, respectively. Charges related to credit loss on accounts receivable were immaterial for the three and nine months ended April 30, 2023. Recoveries and reductions in the allowance for credit loss were immaterial for the three and nine months ended April 30, 2023. As of April 30, 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 $13.2 million and $0.3 million at April 30, 2023 and July 31, 2022, respectively. In the three and nine months ended April 30, 2023, the Company recognized revenue of $3.2 million and $0.3 million, respectively, which was included in the opening contract liability balance for the corresponding period.

Inventories

Inventories	9 Months Ended
	Apr. 30, 2023
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories were comprised of the following: (in thousands) April 30, 2023 July 31, 2022 Finished goods $ 105,015 $ 108,989 Work in progress 214,048 162,337 Raw materials 8,250 14,104 Inventories $ 327,313 $ 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 $0.1 million and $5.1 million at April 30, 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 April 30, 2023 and 2022, the amount capitalized was $4.9 million and $4.0 million, respectively, and $13.5 million and $10.6 million for the nine months ended April 30, 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 April 30, 2023 and 2022, the amount capitalized was $1.2 million and $1.0 million, respectively. For the nine months ended April 30, 2023 and 2022, the amount capitalized was $3.4 million and $3.2 million, respectively.

Property and equipment, net

Property and equipment, net	9 Months Ended
	Apr. 30, 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) April 30, 2023 July 31, 2022 Land $ 136,328 $ 136,328 Buildings and improvements 70,861 70,813 Machinery and equipment 53,864 52,619 Vineyards and improvements 44,866 44,759 Barrels 37,155 30,067 Construction in progress 7,600 5,664 Property and equipment, gross 350,674 340,250 Less: accumulated depreciation and amortization (83,200) (70,591) Property and equipment, net $ 267,474 $ 269,659 Depreciation expense recognized in selling, general and administrative expenses was $0.4 million and $0.3 million for the three months ended April 30, 2023 and 2022, respectively, and $1.3 million and $1.0 million for the nine months ended April 30, 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	9 Months Ended
	Apr. 30, 2023
Payables and Accruals [Abstract]
Accrued expenses	Accrued expenses Accrued expenses were comprised of the following: (in thousands) April 30, 2023 July 31, 2022 Trade spend (a) $ 14,964 $ 15,319 Income taxes payable (b) 7,375 387 Deferred compensation liability (c) 2,920 2,142 Accrued professional fees 774 3,191 Accrued invoices and other accrued expenses 5,876 8,436 Accrued expenses $ 31,909 $ 29,475 _______________________________________________ (a) Trade spend refers to estimated amounts the Company owes to distributors for depletion-based incentives. (b) Effective March 2023, the IRS postponed certain tax filings and payment deadlines, until October 2023, in areas designated with eligible Federal Emergency Management Agency declarations. During the three months ended April 30, 2023, the Company deferred federal and state tax payments and expects to pay the deferred amount in the first fiscal quarter of 2024. (c) 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 were $2.3 million and $1.8 million at April 30, 2023 and July 31, 2022, respectively, and are included in other long-term assets on the Condensed Consolidated Statements of Financial Position.

Debt

Debt	9 Months Ended
	Apr. 30, 2023
Debt Disclosure [Abstract]
Debt	Debt At April 30, 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 April 30, 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 April 30, 2023 and 2022, respectively, and of $0.8 million and $1.2 million for the nine months ended April 30, 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 April 30, 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 Amendment No. 8 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 are 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. Amendment to the New Credit Agreement Effective February 6, 2023, the Company entered into Amendment No. 1 to the Amended and Restated First Lien Loan and Security Agreement. The changes in the amendment are administrative in nature and did not impact the Company's outstanding debt or related debt covenants. The amendment did not result in any additional cash proceeds or changes in commitment amounts. Long-term debt, net was comprised of the following: (in thousands) April 30, 2023 July 31, 2022 Revolving line of credit $ — $ 110,000 Term loan, first lien 223,332 110,117 Capital expenditure loan (a) — 5,049 Total debt 223,332 225,166 Less: Current maturities of long-term debt (9,721) (9,810) Total long-term debt 213,611 215,356 Debt issuance costs (b) (453) (1,608) Total long-term debt, net of current maturities and debt issuance costs $ 213,158 $ 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. As of April 30, 2023, the Company has not drawn on the delayed draw term loan under the New Credit Agreement.

Derivative instruments

Derivative instruments	9 Months Ended
	Apr. 30, 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 April 30, 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 April 30, 2023, the Company held the following interest rate swap agreement, which fixed the interest rate on the applicable notional amount of outstanding variable rate debt: Notional amount (in thousands) Interest rate Effective date Expiration date $100,000 3.735% January 4, 2023 November 4, 2027 The total notional amounts of the Company’s derivative instruments outstanding are as follows: (in thousands) April 30, 2023 July 31, 2022 Derivative instruments not designated as hedging instruments Interest rate swap contract $ 100,000 $ 100,000 Foreign currency forward contracts 5,610 2,793 Total derivative instruments not designated as hedging instruments $ 105,610 $ 102,793 Effective September 30, 2022, the Company amended its interest rate swap initially entered into in March 2020, which expired on March 23, 2023, 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 April 30, 2023 were as follows: Derivative Assets Derivative Liabilities (in thousands) Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Interest rate swap contract Prepaid expenses and other current assets $ — Other long-term liabilities $ 1,830 Foreign currency forward contracts Prepaid expenses and other current assets 107 Other current liabilities — Total derivatives not designated as hedging instruments $ 107 $ 1,830 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: Derivative Assets Derivative Liabilities (in thousands) Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Interest rate swap contracts Prepaid expenses and other current assets $ 1,443 Other long-term liabilities $ — 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 April 30, Nine months ended April 30, (in thousands) Classification 2023 2022 2023 2022 Interest rate swap contracts Other expense (income), net $ 900 $ (1,117) $ 3,273 $ (2,079) Foreign currency forward contracts Other expense (income), net (18) 127 (330) 132 Total loss (gain) $ 882 $ (990) $ 2,943 $ (1,947)

Fair value measurements

Fair value measurements	9 Months Ended
	Apr. 30, 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 agreement is estimated with the assistance of a third party, using inputs that can be corroborated by observable market data (Level 2 of the fair value hierarchy). Foreign currency forward contracts: The fair value of the Company’s outstanding foreign currency forward contracts 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). 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 April 30, 2023, were as follows: (in thousands) Fair value measurements using: Quoted prices in active markets (Level 1) Significant other observable inputs Significant unobservable inputs Assets Foreign currency forward contracts $ — $ 107 $ — Deferred compensation plan asset $ — $ 2,262 $ — Liabilities Interest rate swap contract $ — $ 1,830 $ — Deferred compensation liability $ — $ 2,920 $ — 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 Assets Interest rate swap contracts $ — $ 1,443 $ — Deferred compensation plan asset $ — $ 1,753 $ — Liabilities Foreign currency forward contracts $ — $ 223 $ — Deferred compensation liability $ — $ 2,142 $ —

Commitments and contingencies

Commitments and contingencies	9 Months Ended
	Apr. 30, 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 nine months ended April 30, 2023, the Company paid the remaining commitments and liabilities associated with the barrel purchases for the 2022 harvest. As of April 30, 2023, the Company has entered into barrel purchase commitments of approximately $10.3 million 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 April 30, 2023 and July 31, 2022, there were no material contingent obligations requiring accrual or disclosure. In the ordinary course of business, the Company enters into agreements containing standard indemnification provisions. The aggregate maximum potential future liability of the Company under such indemnification provisions is uncertain, as these involve potential future claims against the Company that have not occurred. The Company expects the risk of any future obligations under these indemnification provisions to be remote. As of April 30, 2023 and July 31, 2022, no amounts have been accrued related to such indemnification provisions.

Equity-based compensation

Equity-based compensation	9 Months Ended
	Apr. 30, 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 nine months ended April 30, 2023 was $4.9 million. Restricted shares The following table represents restricted share activity: Performance-based shares Weighted-average grant-date fair value (per share) Unvested as of July 31, 2022 266,158 $ 14.23 Granted — — Vested (266,158) 14.23 Forfeited — — Unvested as of April 30, 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 (per share) Weighted-average remaining contractual life (in years) Aggregate intrinsic value (in thousands) 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 (40,473) 17.25 Outstanding at April 30, 2023 2,462,293 $ 15.99 8.6 $ 817 Exercisable as of April 30, 2023 685,331 $ 17.15 8.0 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. 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 April 30, 2023 and 2022, respectively, and $2.1 million and $1.5 million for the nine months ended April 30, 2023 and 2022, respectively. The total unrecognized compensation expense related to the 2021 Plan stock options was $8.7 million as of April 30, 2023, which is expected to be recognized over a weighted-average period of 2.9 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: Nine months ended April 30, 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 (138,807) 17.64 Forfeited (39,414) 16.94 Unvested as of April 30, 2023 619,373 $ 15.56 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. Total recognized equity compensation expense related to the 2021 Plan RSUs was $0.9 million and $0.7 million, for the three months ended April 30, 2023 and 2022, respectively, and $2.5 million and $2.3 million for the nine months ended April 30, 2023 and 2022, respectively. The total fair value of restricted stock that vested during the nine months ended April 30, 2023 was $1.5 million. The total unrecognized compensation expense related to the 2021 Plan RSUs was $8.5 million as of April 30, 2023, which is expected to be recognized over a weighted-average period of 2.6 years.

Earnings per share

Earnings per share	9 Months Ended
	Apr. 30, 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 April 30, Nine months ended April 30, (in thousands, except per share data) 2023 2022 2023 2022 Numerator: Net income attributable to The Duckhorn Portfolio, Inc. $ 16,797 $ 15,565 $ 51,529 $ 54,770 Denominator: Weighted average number of shares outstanding for basic per share calculation 115,255,671 115,115,850 115,209,972 115,070,183 Effect of dilutive potential shares (a) : Stock options 867 45,076 2,390 123,162 Restricted stock awards 110,917 120,798 212,672 154,463 Adjusted weighted average shares outstanding for diluted per share calculation 115,367,455 115,281,724 115,425,034 115,347,808 Earnings per share attributable to Basic $ 0.15 $ 0.14 $ 0.45 $ 0.48 Diluted $ 0.15 $ 0.14 $ 0.45 $ 0.47 _______________________________________________ (a) Calculated using the treasury stock method. For the three months ended April 30, 2023 and 2022, there were 0.7 million and 0.2 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 nine months ended April 30, 2023 and 2022, there were 0.5 million and 0.2 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	9 Months Ended
	Apr. 30, 2023
Income Tax Disclosure [Abstract]
Income taxes	Income taxes Income tax expense was $6.0 million and $18.4 million, with an effective tax rate of 26.3% and 26.3% for the three and nine months ended April 30, 2023, respectively, compared to $4.7 million and $18.5 million, with an effective tax rate of 23.2% and 25.2% for the three and nine months ended April 30, 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	9 Months Ended
	Apr. 30, 2023
Subsequent Events [Abstract]
Subsequent events	Subsequent events Second Amendment to the Amended and Restated First Lien Loan and Security Agreement On May 2, 2023, the Company entered into Amendment No. 2 to the Amended and Restated First Lien Loan and Security Agreement. The amendment amends and restates the definition of fixed charge coverage ratio in the New Credit Agreement to replace unfinanced capital expenditures with maintenance capital expenditures in the calculation of the fixed charge coverage ratio. Acquisition of North Coast Wine Production Facility On May 4, 2023, the Company announced that it entered into a definitive agreement to acquire a production winery and seven acres of planted Cabernet Sauvignon in Alexander Valley, Sonoma County, California. The purchase price of the transaction is approximately $55.0 million and is subject to certain customary closing conditions. The transaction is expected to close in the fourth fiscal quarter of 2023 and is expected to be funded with the New Credit Facility and available cash. The Company is currently assessing the fair value of identifiable net assets acquired.

Basis of presentation and rec_2

Basis of presentation and recent accounting pronouncements (Policies)	9 Months Ended
	Apr. 30, 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 April 30, 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 April 30, 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 agreement is estimated with the assistance of a third party, using inputs that can be corroborated by observable market data (Level 2 of the fair value hierarchy). Foreign currency forward contracts: The fair value of the Company’s outstanding foreign currency forward contracts 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). 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)	9 Months Ended
	Apr. 30, 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 April 30, Nine months ended April 30, 2023 2022 2023 2022 Wholesale - Distributors 68.6 % 62.0 % 68.9 % 66.0 % Wholesale - California direct to trade (a) 17.5 16.6 17.4 17.6 DTC (b) 13.9 21.4 13.7 16.4 Net sales 100.0 % 100.0 % 100.0 % 100.0 % _______________________________________________ (a) Includes $0.7 million of sales related to bulk and grape sales for the nine months ended April 30, 2023, and $0.1 million and $2.9 million for the three and nine months ended April 30, 2022, respectively. (b) Includes shipping and handling revenue of $0.3 million and $1.4 million for the three and nine months ended April 30, 2023, respectively, and $1.0 million and $2.0 million for the three and nine months ended April 30, 2022, respectively.

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Apr. 30, 2023
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories were comprised of the following: (in thousands) April 30, 2023 July 31, 2022 Finished goods $ 105,015 $ 108,989 Work in progress 214,048 162,337 Raw materials 8,250 14,104 Inventories $ 327,313 $ 285,430

Property and equipment, net (Ta

Property and equipment, net (Tables)	9 Months Ended
	Apr. 30, 2023
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment, net was comprised of the following: (in thousands) April 30, 2023 July 31, 2022 Land $ 136,328 $ 136,328 Buildings and improvements 70,861 70,813 Machinery and equipment 53,864 52,619 Vineyards and improvements 44,866 44,759 Barrels 37,155 30,067 Construction in progress 7,600 5,664 Property and equipment, gross 350,674 340,250 Less: accumulated depreciation and amortization (83,200) (70,591) Property and equipment, net $ 267,474 $ 269,659

Accrued expenses (Tables)

Accrued expenses (Tables)	9 Months Ended
	Apr. 30, 2023
Payables and Accruals [Abstract]
Schedule of Accrued Expenses	Accrued expenses were comprised of the following: (in thousands) April 30, 2023 July 31, 2022 Trade spend (a) $ 14,964 $ 15,319 Income taxes payable (b) 7,375 387 Deferred compensation liability (c) 2,920 2,142 Accrued professional fees 774 3,191 Accrued invoices and other accrued expenses 5,876 8,436 Accrued expenses $ 31,909 $ 29,475 _______________________________________________ (a) Trade spend refers to estimated amounts the Company owes to distributors for depletion-based incentives. (b) Effective March 2023, the IRS postponed certain tax filings and payment deadlines, until October 2023, in areas designated with eligible Federal Emergency Management Agency declarations. During the three months ended April 30, 2023, the Company deferred federal and state tax payments and expects to pay the deferred amount in the first fiscal quarter of 2024. (c) 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 were $2.3 million and $1.8 million at April 30, 2023 and July 31, 2022, respectively, and are included in other long-term assets on the Condensed Consolidated Statements of Financial Position.

Debt (Tables)

Debt (Tables)	9 Months Ended
	Apr. 30, 2023
Debt Disclosure [Abstract]
Schedule of Long-Term Debt Instruments	Long-term debt, net was comprised of the following: (in thousands) April 30, 2023 July 31, 2022 Revolving line of credit $ — $ 110,000 Term loan, first lien 223,332 110,117 Capital expenditure loan (a) — 5,049 Total debt 223,332 225,166 Less: Current maturities of long-term debt (9,721) (9,810) Total long-term debt 213,611 215,356 Debt issuance costs (b) (453) (1,608) Total long-term debt, net of current maturities and debt issuance costs $ 213,158 $ 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. As of April 30, 2023, the Company has not drawn on the delayed draw term loan under the New Credit Agreement.

Derivative instruments (Tables)

Derivative instruments (Tables)	9 Months Ended
	Apr. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Interest Rate Derivatives	As of April 30, 2023, the Company held the following interest rate swap agreement, which fixed the interest rate on the applicable notional amount of outstanding variable rate debt: Notional amount (in thousands) Interest rate Effective date Expiration date $100,000 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) April 30, 2023 July 31, 2022 Derivative instruments not designated as hedging instruments Interest rate swap contract $ 100,000 $ 100,000 Foreign currency forward contracts 5,610 2,793 Total derivative instruments not designated as hedging instruments $ 105,610 $ 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 April 30, 2023 were as follows: Derivative Assets Derivative Liabilities (in thousands) Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Interest rate swap contract Prepaid expenses and other current assets $ — Other long-term liabilities $ 1,830 Foreign currency forward contracts Prepaid expenses and other current assets 107 Other current liabilities — Total derivatives not designated as hedging instruments $ 107 $ 1,830 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: Derivative Assets Derivative Liabilities (in thousands) Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Interest rate swap contracts Prepaid expenses and other current assets $ 1,443 Other long-term liabilities $ — 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 April 30, Nine months ended April 30, (in thousands) Classification 2023 2022 2023 2022 Interest rate swap contracts Other expense (income), net $ 900 $ (1,117) $ 3,273 $ (2,079) Foreign currency forward contracts Other expense (income), net (18) 127 (330) 132 Total loss (gain) $ 882 $ (990) $ 2,943 $ (1,947)

Fair value measurements (Tables

Fair value measurements (Tables)	9 Months Ended
	Apr. 30, 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 April 30, 2023, were as follows: (in thousands) Fair value measurements using: Quoted prices in active markets (Level 1) Significant other observable inputs Significant unobservable inputs Assets Foreign currency forward contracts $ — $ 107 $ — Deferred compensation plan asset $ — $ 2,262 $ — Liabilities Interest rate swap contract $ — $ 1,830 $ — Deferred compensation liability $ — $ 2,920 $ — 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 Assets Interest rate swap contracts $ — $ 1,443 $ — Deferred compensation plan asset $ — $ 1,753 $ — Liabilities Foreign currency forward contracts $ — $ 223 $ — Deferred compensation liability $ — $ 2,142 $ —

Equity-based compensation (Tabl

Equity-based compensation (Tables)	9 Months Ended
	Apr. 30, 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 (per share) Unvested as of July 31, 2022 266,158 $ 14.23 Granted — — Vested (266,158) 14.23 Forfeited — — Unvested as of April 30, 2023 — $ —
Schedule of Share-based Payment Arrangement, Option, Activity	The following table represents the stock option activity: Number of options Weighted-average exercise price (per share) Weighted-average remaining contractual life (in years) Aggregate intrinsic value (in thousands) 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 (40,473) 17.25 Outstanding at April 30, 2023 2,462,293 $ 15.99 8.6 $ 817 Exercisable as of April 30, 2023 685,331 $ 17.15 8.0
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: Nine months ended April 30, 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 (138,807) 17.64 Forfeited (39,414) 16.94 Unvested as of April 30, 2023 619,373 $ 15.56

Earnings per share (Tables)

Earnings per share (Tables)	9 Months Ended
	Apr. 30, 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 April 30, Nine months ended April 30, (in thousands, except per share data) 2023 2022 2023 2022 Numerator: Net income attributable to The Duckhorn Portfolio, Inc. $ 16,797 $ 15,565 $ 51,529 $ 54,770 Denominator: Weighted average number of shares outstanding for basic per share calculation 115,255,671 115,115,850 115,209,972 115,070,183 Effect of dilutive potential shares (a) : Stock options 867 45,076 2,390 123,162 Restricted stock awards 110,917 120,798 212,672 154,463 Adjusted weighted average shares outstanding for diluted per share calculation 115,367,455 115,281,724 115,425,034 115,347,808 Earnings per share attributable to Basic $ 0.15 $ 0.14 $ 0.45 $ 0.48 Diluted $ 0.15 $ 0.14 $ 0.45 $ 0.47 _______________________________________________ (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		9 Months Ended
	Apr. 30, 2023	Nov. 30, 2021	Apr. 30, 2023	Oct. 31, 2021	Apr. 30, 2023	Apr. 30, 2022
Subsidiary, Sale of Stock [Line Items]
Sale of stock, number of shares issued in transaction	6,000,000	626,467		12,000,000
Sale of stock, price per share (in dollars per share)	$ 15.35		$ 15.35	$ 20.50	$ 15.35
Sale of stock, transaction costs			$ 0.4		$ 0.4	$ 0.6

Basis of presentation and rec_3

Basis of presentation and recent accounting pronouncements (Details) - USD ($) $ / shares in Units, $ in Millions	9 Months Ended	12 Months Ended
	Apr. 30, 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		9 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, percent	100%	100%	100%	100%
Revenue	$ 91,242	$ 91,584	$ 302,901	$ 294,501
Bulk and Grape Sales
Disaggregation of Revenue [Line Items]
Revenue		100	700	2,900
Shipping and Handling
Disaggregation of Revenue [Line Items]
Revenue	$ 300	$ 1,000	$ 1,400	$ 2,000
Wholesale - Distributors
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, percent	68.60%	62%	68.90%	66%
Wholesale - California direct to trade
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, percent	17.50%	16.60%	17.40%	17.60%
DTC
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, percent	13.90%	21.40%	13.70%	16.40%

Revenue - Narrative (Details)

Revenue - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Apr. 30, 2023	Apr. 30, 2023	Jul. 31, 2022
Revenue from Contract with Customer [Abstract]
Allowance for credit losses on current accounts receivable	$ 400	$ 400	$ 400
Deferred revenue	13,156	13,156	$ 272
Revenue recognized	$ 3,200	$ 300

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Apr. 30, 2023	Jul. 31, 2022
Inventory Disclosure [Abstract]
Finished goods	$ 105,015	$ 108,989
Work in progress	214,048	162,337
Raw materials	8,250	14,104
Inventories	$ 327,313	$ 285,430

Inventories - Narrative (Detail

Inventories - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022	Jul. 31, 2022
Inventory Disclosure [Abstract]
Excess and obsolete inventory reserve	$ 0.1		$ 0.1		$ 5.1
Inventory, capitalized costs incurred	4.9	$ 4	13.5	$ 10.6
Capitalized leases costs used in production of inventory	$ 1.2	$ 1	$ 3.4	$ 3.2

Property and equipment, net - S

Property and equipment, net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Apr. 30, 2023	Jul. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 350,674	$ 340,250
Less: accumulated depreciation and amortization	(83,200)	(70,591)
Property and equipment, net	267,474	269,659
Land
Property, Plant and Equipment [Line Items]
Property and equipment, gross	136,328	136,328
Buildings and improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	70,861	70,813
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	53,864	52,619
Vineyards and improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	44,866	44,759
Barrels
Property, Plant and Equipment [Line Items]
Property and equipment, gross	37,155	30,067
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 7,600	$ 5,664

Property and equipment, net - N

Property and equipment, net - Narrative (Details) $ in Millions	3 Months Ended			9 Months Ended
	Apr. 30, 2023 USD ($)	Apr. 30, 2022 USD ($)	Jan. 31, 2022 USD ($) vineyard	Apr. 30, 2023 USD ($)	Apr. 30, 2022 USD ($)
Property, Plant and Equipment [Abstract]
Depreciation	$ 0.4	$ 0.3		$ 1.3	$ 1
Number of vineyards purchased | vineyard			3
Acquisition price			$ 14.5

Accrued expenses - Components (

Accrued expenses - Components (Details) - USD ($) $ in Thousands	Apr. 30, 2023	Jul. 31, 2022
Payables and Accruals [Abstract]
Trade spend	$ 14,964	$ 15,319
Income taxes payable	7,375	387
Deferred compensation liability	2,920	2,142
Accrued professional fees	774	3,191
Accrued invoices and other accrued expenses	5,876	8,436
Accrued expenses	$ 31,909	$ 29,475

Accrued expenses - Narrative (D

Accrued expenses - Narrative (Details) - USD ($) $ in Millions	Apr. 30, 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		9 Months Ended
	Nov. 04, 2022	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Debt Instrument [Line Items]
Amortization of debt issuance costs		$ 200,000	$ 400,000	$ 774,000	$ 1,206,000
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 | SOFR | Less Than or Equal to 33% of Average Availability
Debt Instrument [Line Items]
Loan margin (percent)	1.50%
First Lien Senior Secured Credit Facilities | SOFR | Greater Than 33% and Less Than or Equal to 66% of Average Availability
Debt Instrument [Line Items]
Loan margin (percent)	1.25%
First Lien Senior Secured Credit Facilities | SOFR | Greater Than 66% of Average Availability
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
Swingline 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
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	Apr. 30, 2023	Jul. 31, 2022
Line of Credit Facility [Line Items]
Long-term debt, gross	$ 223,332	$ 225,166
Less: Current maturities of long-term debt	(9,721)	(9,810)
Total long-term debt	213,611	215,356
Total long-term debt, net of current maturities and debt issuance costs	213,158	213,748
Revolving Credit and Delayed Draw Term Loan
Line of Credit Facility [Line Items]
Debt issuance costs	(2,800)
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	223,332	110,117
Debt issuance costs	(453)	(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 ($)	Apr. 30, 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) - Interest Rate Swap Expiring November 2027 $ in Thousands	Apr. 30, 2023 USD ($)
Derivative [Line Items]
Notional amount	$ 100,000
Interest rate	3.735%

Derivative instruments - Total

Derivative instruments - Total Notional Amount (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands	Apr. 30, 2023	Jul. 31, 2022
Derivative [Line Items]
Notional amount	$ 105,610	$ 102,793
Interest rate swap contract
Derivative [Line Items]
Notional amount	100,000	100,000
Foreign currency forward contracts
Derivative [Line Items]
Notional amount	$ 5,610	$ 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	Apr. 30, 2023	Jul. 31, 2022
Derivatives, Fair Value [Line Items]
Derivative asset	$ 107	$ 1,443
Derivative liability	1,830	223
Interest rate swap contract | Prepaid expenses and other current assets
Derivatives, Fair Value [Line Items]
Derivative asset	0	1,443
Interest rate swap contract | Other long-term liabilities
Derivatives, Fair Value [Line Items]
Derivative liability	1,830	0
Foreign currency forward contracts | Prepaid expenses and other current assets
Derivatives, Fair Value [Line Items]
Derivative asset	107	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		9 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Derivative [Line Items]
Total (gain) loss			$ 2,943	$ (1,947)
Not Designated as Hedging Instrument
Derivative [Line Items]
Total (gain) loss	$ 882	$ (990)	2,943	(1,947)
Not Designated as Hedging Instrument | Interest rate swap contract
Derivative [Line Items]
Total (gain) loss	900	(1,117)	3,273	(2,079)
Not Designated as Hedging Instrument | Foreign currency forward contracts
Derivative [Line Items]
Total (gain) loss	$ (18)	$ 127	$ (330)	$ 132

Fair value measurements - Asset

Fair value measurements - Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Apr. 30, 2023	Jul. 31, 2022
Quoted prices in active markets (Level 1)
Assets
Deferred compensation plan asset	$ 0	$ 0
Liabilities
Deferred compensation liability	0	0
Quoted prices in active markets (Level 1) | Foreign currency forward contracts
Assets
Derivative asset	0
Liabilities
Derivative liability		0
Quoted prices in active markets (Level 1) | Interest rate swap contract
Assets
Derivative asset		0
Liabilities
Derivative liability	0
Significant other observable inputs (Level 2)
Assets
Deferred compensation plan asset	2,262	1,753
Liabilities
Deferred compensation liability	2,920	2,142
Significant other observable inputs (Level 2) | Foreign currency forward contracts
Assets
Derivative asset	107
Liabilities
Derivative liability		223
Significant other observable inputs (Level 2) | Interest rate swap contract
Assets
Derivative asset		1,443
Liabilities
Derivative liability	1,830
Significant unobservable inputs (Level 3)
Assets
Deferred compensation plan asset	0	0
Liabilities
Deferred compensation liability	0	0
Significant unobservable inputs (Level 3) | Foreign currency forward contracts
Assets
Derivative asset	0
Liabilities
Derivative liability		0
Significant unobservable inputs (Level 3) | Interest rate swap contract
Assets
Derivative asset		$ 0
Liabilities
Derivative liability	$ 0

Commitments and contingencies -

Commitments and contingencies - Narrative (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Apr. 30, 2023	Jul. 31, 2022
Commitments and Contingencies [Line Items]
Purchase commitment, remaining amount committed	$ 10.3	$ 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		9 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 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
Shares available for issuance (in shares)	1,221,597		1,221,597
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	$ 8.7		8.7
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	$ 2.1	$ 1.5
Unrecognized compensation expense, period for recognition (years)			2 years 10 months 24 days
2021 Equity Incentive Plan | RSU
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of vested restricted shares			$ 1.5
Share-based payment arrangement, expense	0.9	$ 0.7	$ 2.5	$ 2.3
Unrecognized compensation expense, period for recognition (years)			2 years 7 months 6 days
Unrecognized compensation expense	$ 8.5		$ 8.5

Equity-based compensation - Act

Equity-based compensation - Activity for Awards (Details)	9 Months Ended
	Apr. 30, 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 (per share)
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	(138,807)
Forfeited (in shares) | shares	(39,414)
Unvested, ending (in shares) | shares	619,373
Weighted-average grant-date fair value (per share)
Unvested, beginning (in dollars per share) | $ / shares	$ 17.32
Granted (in dollars per share) | $ / shares	14.56
Vested (in dollars per share) | $ / shares	17.64
Forfeited (in dollars per share) | $ / shares	16.94
Unvested, ending (in dollars per share) | $ / shares	$ 15.56

Equity-based compensation - Sto

Equity-based compensation - Stock Option Activity (Details) - 2021 Equity Incentive Plan - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Apr. 30, 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)	(40,473)
Outstanding, ending (in shares)	2,462,293	1,555,610
Exercisable (shares)	685,331
Weighted-average exercise price (per share)
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)	$ 17.15
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Outstanding, weighted-average remaining contractual life (in years)	8 years 7 months 6 days	8 years 8 months 12 days
Exercisable, weighted-average remaining contractual life (in years)	8 years
Aggregate intrinsic value	$ 817	$ 3,847

Equity-based compensation - Val

Equity-based compensation - Valuation Assumptions (Details) - 2021 Equity Incentive Plan - Stock options	9 Months Ended
	Apr. 30, 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		9 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net income attributable to The Duckhorn Portfolio, Inc.	$ 16,797	$ 15,565	$ 51,529	$ 54,770
Denominator:
Weighted average number of shares outstanding for basic per share calculation (in shares)	115,255,671	115,115,850	115,209,972	115,070,183
Adjusted weighted average shares outstanding for diluted per share calculation (in shares)	115,367,455	115,281,724	115,425,034	115,347,808
Earnings per share attributable to The Duckhorn Portfolio, Inc.:
Basic (in dollars per share)	$ 0.15	$ 0.14	$ 0.45	$ 0.48
Diluted (in dollars per share)	$ 0.15	$ 0.14	$ 0.45	$ 0.47
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares (in shares)	700,000	200,000	500,000	200,000
Stock options
Denominator:
Effect of dilutive potential shares (in shares)	867	45,076	2,390	123,162
Restricted stock awards
Denominator:
Effect of dilutive potential shares (in shares)	110,917	120,798	212,672	154,463

Income taxes (Details)

Income taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Income Tax Disclosure [Abstract]
Income tax expense	$ 6,006	$ 4,699	$ 18,358	$ 18,483
Effective income tax rate, percent	26.30%	23.20%	26.30%	25.20%

Subsequent events (Details)

Subsequent events (Details) $ in Millions		3 Months Ended
	May 04, 2023 USD ($) a	Jan. 31, 2022 USD ($)
Subsequent Event [Line Items]
Acquisition price		$ 14.5
Subsequent Event | North Coast Wine Production Facility
Subsequent Event [Line Items]
Area of property acquired (in acres) | a	7
Acquisition price	$ 55