The Duckhorn Portfolio, Inc. (NAPA) 10-Q 6 Dec 23 2024 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Oct. 31, 2023	Nov. 29, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Oct. 31, 2023
Document Transition Report	false
Entity File Number	001-40240
Entity Registrant Name	The Duckhorn Portfolio, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	81-3866305
Entity Address, Address Line One	1201 Dowdell Lane
Entity Address, City or Town	Saint Helena
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94574
City Area Code	707
Local Phone Number	302-2658
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	NAPA
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		115,367,710
Entity Central Index Key	0001835256
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false
Current Fiscal Year End Date	--07-31

Condensed Consolidated Statemen

Condensed Consolidated Statements of Financial Position - USD ($) $ in Thousands	Oct. 31, 2023	Jul. 31, 2023
Current assets:
Cash	$ 21,182	$ 6,353
Accounts receivable trade, net	71,254	48,706
Inventories	389,199	322,227
Prepaid expenses and other current assets	8,393	10,244
Total current assets	490,028	387,530
Property and equipment, net	328,468	323,530
Operating lease right-of-use assets	18,834	20,376
Intangible assets, net	182,337	184,227
Goodwill	425,209	425,209
Other assets	8,327	6,810
Total assets	1,453,203	1,347,682
Current liabilities:
Accounts payable	33,023	4,829
Accrued expenses	90,022	38,246
Accrued compensation	8,651	16,460
Deferred revenue	11,199	66
Current maturities of long-term debt	9,721	9,721
Other current liabilities	4,870	5,138
Total current liabilities	157,486	74,460
Long-term debt, net of current maturities and debt issuance costs	231,148	223,619
Operating lease liabilities	15,141	16,534
Deferred income taxes	90,216	90,216
Other liabilities	445	445
Total liabilities	494,436	405,274
Commitments and contingencies (Note 9)
Stockholders’ equity:
Common stock, $0.01 par value; 500,000,000 shares authorized; 115,367,710 and 115,316,308 issued and outstanding at October 31, 2023 and July 31, 2023, respectively	1,154	1,153
Additional paid-in capital	738,365	737,557
Retained earnings	218,659	203,122
Total The Duckhorn Portfolio, Inc. stockholders’ equity	958,178	941,832
Non-controlling interest	589	576
Total stockholders’ equity	958,767	942,408
Total liabilities and stockholders’ equity	$ 1,453,203	$ 1,347,682
Common stock, shares issued (in shares)	115,367,710	115,316,308
Common stock, shares outstanding (in shares)	115,367,710	115,316,308

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Financial Position (Parenthetical) - $ / shares	Oct. 31, 2023	Jul. 31, 2023
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)	115,367,710	115,316,308
Common stock, shares outstanding (in shares)	115,367,710	115,316,308

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2023	Oct. 31, 2022
Income Statement [Abstract]
Net sales (net of excise taxes of $1,394 and $1,584, respectively)	$ 102,509	$ 108,171
Cost of sales	48,656	53,461
Gross profit	53,853	54,710
Selling, general and administrative expenses	30,483	25,739
Income from operations	23,370	28,971
Interest expense	4,004	2,162
Other income, net	(1,813)	(87)
Total other expenses, net	2,191	2,075
Income before income taxes	21,179	26,896
Income tax expense	5,629	7,087
Net income	15,550	19,809
Less: Net (income) loss attributable to non-controlling interest	(13)	6
Net income attributable to The Duckhorn Portfolio, Inc.	$ 15,537	$ 19,815
Earnings per share of common stock:
Basic (in dollars per share)	$ 0.13	$ 0.17
Diluted (in dollars per share)	$ 0.13	$ 0.17
Weighted average shares of common stock outstanding:
Basic (in shares)	115,339,774	115,184,161
Diluted (in shares)	115,451,719	115,275,692

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2023	Oct. 31, 2022
Income Statement [Abstract]
Excise taxes	$ 1,394	$ 1,584

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, 2022			115,184,161
Beginning balance at Jul. 31, 2022	$ 867,161	$ 866,573	$ 1,152	$ 731,597	$ 133,824	$ 588
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	19,809	19,815			19,815	(6)
Equity-based compensation (Note 10)	1,180	1,180		1,180
Ending balance (in shares) at Oct. 31, 2022			115,184,161
Ending balance at Oct. 31, 2022	$ 888,150	887,568	$ 1,152	732,777	153,639	582
Beginning balance (in shares) at Jul. 31, 2023	115,316,308		115,316,308
Beginning balance at Jul. 31, 2023	$ 942,408	941,832	$ 1,153	737,557	203,122	576
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	15,550	15,537			15,537	13
Issuance of common stock under equity incentive plans (in shares)			79,639
Issuance of common stock under equity incentive plans	1	1	$ 1
Equity-based compensation (Note 10)	1,150	1,150		1,150
Taxes paid related to net share settlement of equity awards (in shares)			(28,237)
Taxes paid related to net share settlement of equity awards	$ (342)	(342)		(342)
Ending balance (in shares) at Oct. 31, 2023	115,367,710		115,367,710
Ending balance at Oct. 31, 2023	$ 958,767	$ 958,178	$ 1,154	$ 738,365	$ 218,659	$ 589

Condensed Consolidated Statem_6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2023	Oct. 31, 2022
Cash flows from operating activities
Net income	$ 15,550	$ 19,809
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	7,329	5,757
Gain on disposal of assets	(42)	(32)
Change in fair value of derivatives	(1,889)	(368)
Amortization of debt issuance costs	194	402
Equity-based compensation	1,150	1,180
Change in operating assets and liabilities:
Accounts receivable trade, net	(22,547)	(32,619)
Inventories	(66,115)	(55,626)
Prepaid expenses and other current assets	1,781	442
Other assets	283	122
Accounts payable	28,045	42,670
Accrued expenses	51,985	37,262
Accrued compensation	(7,808)	(3,733)
Deferred revenue	11,132	11,797
Other current and non-current liabilities	(982)	(679)
Net cash provided by operating activities	18,066	26,384
Cash flows from investing activities
Purchases of property and equipment, net of sales proceeds	(10,395)	(6,418)
Net cash used in investing activities	(10,395)	(6,418)
Cash flows from financing activities
Payments under line of credit	(13,000)	(20,000)
Borrowings under line of credit	23,000	5,000
Payments of long-term debt	(2,500)	(2,808)
Taxes paid related to net share settlement of equity awards	(342)	0
Net cash provided by (used in) financing activities	7,158	(17,808)
Net increase in cash	14,829	2,158
Cash - Beginning of period	6,353	3,167
Cash - End of period	21,182	5,325
Supplemental cash flow information
Interest paid, net of amount capitalized	4,009	1,777
Income taxes paid	11,607	0
Non-cash investing activities
Property and equipment additions in accounts payable and accrued expenses	$ 3,300	$ 3,776

Description of Business

Description of Business	3 Months Ended
	Oct. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of Business The Duckhorn Portfolio, Inc. and its subsidiaries (collectively, “the Company,” “Management,” “we,” “us,” “our” and “Duckhorn”), 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 sales to distributors and direct to trade accounts in California (“wholesale”) and direct to consumer (“DTC”). Wholesale revenue is generated through sales directly to California retailers and restaurants, sales to distributors and agents located in other states throughout the United States (“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. Unless otherwise stated, references to particular years or quarters refer to the Company’s fiscal years and the associated periods in those fiscal years. Except as otherwise specified, information in this report is provided as of October 31, 2023. Secondary Offering 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 in the third quarter of Fiscal 2023

Basis of Presentation and Recen

Basis of Presentation and Recent Accounting Pronouncements	3 Months Ended
	Oct. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation and Recent Accounting Pronouncements	Basis of Presentation and Recent Accounting Pronouncements Basis of presentation The Company’s Condensed Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“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 fiscal year ending July 31, 2024, for any other interim period or for any future year. The Condensed Consolidated Statement of Financial Position as of July 31, 2023 was derived from the Company's audited financial statements for the fiscal year ended July 31, 2023, 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, 2023. Principles of consolidation The Condensed Consolidated Financial Statements include the accounts of The Duckhorn Portfolio, Inc. and its subsidiaries, including a consolidated variable interest entity (“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 in conformity with U.S. GAAP 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. 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 Accounting Standards Codification (“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. Thus, it represents a Level 3 measurement as defined in ASC Topic 820, Fair Value Measurement . Based on these evaluations, if the Company determines that it is the primary beneficiary of a VIE, the entity is consolidated into the financial statements. At October 31, 2023 and July 31, 2023, 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 Statements of Financial Position were $2.3 million as of October 31, 2023 and July 31, 2023. 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 grape sales under current contracts and farming costs. Recently adopted accounting pronouncements No new accounting pronouncements issued or effective as of October 31, 2023 have had, or are expected to have, a material impact on the Condensed Consolidated Financial Statements or the related disclosures.

Revenue

Revenue	3 Months Ended
	Oct. 31, 2023
Revenue from Contract with Customer [Abstract]
Revenue	Revenue Disaggregated revenue information The following table presents the percentages of consolidated net sales disaggregated by sales channels: Three months ended October 31, 2023 2022 Wholesale - Distributors 77.0 % 76.4 % Wholesale - California direct to trade (a) 15.6 15.8 DTC (b) 7.4 7.8 Net sales (c) 100.0 % 100.0 % _______________________________________________ (a) Includes $0.7 million and $0.6 million of sales related to bulk and grape sales for the three months ended October 31, 2023 and 2022, respectively. (b) Includes shipping and handling revenue of $0.1 million for each of the three months ended October 31, 2023 and 2022, respectively. (c) For the three months ended October 31, 2023, excludes lease income of $0.9 million from Geyserville winery acquired in June 2023. Charges, recoveries and reductions related to credit loss on accounts receivable and the related allowance were immaterial for the three months ended October 31, 2023 and 2022. As of October 31, 2023 and July 31, 2023, the allowance for credit losses was $0.5 million. Contract balances When the Company receives payment from a customer, prior to meeting the performance obligation under the terms of a contract, the Company records deferred revenue, which represents a contract liability. The Company’s deferred revenue is primarily comprised of cash collected from wines sold through our DTC channel 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 $11.2 million and $0.1 million at October 31, 2023 and July 31, 2023, respectively. The amount of revenue recognized relating to the opening contract liability balance for the three months ended October 31, 2023 was immaterial. The Company recognized revenue of $0.2 million during the three months ended October 31, 2022, included in the opening contract liability balance for the corresponding period.

Inventories

Inventories	3 Months Ended
	Oct. 31, 2023
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories were comprised of the following: (in thousands) October 31, 2023 July 31, 2023 Finished goods $ 134,070 $ 145,355 Work in progress 234,856 161,795 Raw materials 20,273 15,077 Inventories $ 389,199 $ 322,227 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 $1.2 million and $0.9 million at October 31, 2023 and July 31, 2023, respectively. The Company capitalizes into inventories depreciation related to property and equipment used in the production of inventory. For the three months ended October 31, 2023 and 2022, the amount capitalized was $3.8 million and $3.5 million, respectively. The Company also capitalizes total lease costs related to leases used in the production of inventory. For the three months ended October 31, 2023 and 2022, the amount capitalized was $1.2 million and $1.1 million, respectively.

Accrued Expenses

Accrued Expenses	3 Months Ended
	Oct. 31, 2023
Payables and Accruals [Abstract]
Accrued Expenses	Accrued Expenses Accrued expenses were comprised of the following: (in thousands) October 31, 2023 July 31, 2023 Bulk wine and other received not invoiced $ 46,433 $ 529 Trade spend (a) 16,879 12,721 Income taxes payable (b) 5,042 11,019 Deferred compensation liability (c) 3,523 3,261 Barrel purchases 2,271 2,589 Accrued professional fees 2,314 599 Accrued invoices and other accrued expenses 13,560 7,528 Accrued expenses $ 90,022 $ 38,246 _______________________________________________ (a) Trade spend refers to estimated amounts the Company owes to distributors for depletion-based incentives. (b) Effective March 2023, as revised in October 2023, the IRS postponed certain tax filings and payment deadlines, until November 2023, in areas designated with eligible Federal Emergency Management Agency declarations. During the third fiscal quarter of 2023, the Company deferred federal and state tax payments which was paid in full during the three months ended October 31, 2023. (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 was $2.4 million and $2.7 million at October 31, 2023 and July 31, 2023, respectively, and are included in other assets on the Condensed Consolidated Statements of Financial Position.

Debt

Debt	3 Months Ended
	Oct. 31, 2023
Debt Disclosure [Abstract]
Debt	Debt Long-term debt, net of current maturities and debt issuance costs was comprised of the following: (in thousands) October 31, 2023 July 31, 2023 Revolving line of credit $ 23,000 $ 13,000 Term loan, first lien 218,332 220,832 Total debt 241,332 233,832 Less: Current maturities of long-term debt (9,721) (9,721) Total long-term debt 231,611 224,111 Debt issuance costs (a) (463) (492) Total long-term debt, net of current maturities and debt issuance costs $ 231,148 $ 223,619 _______________________________________________ (a) Debt issuance costs are the costs associated with the term loan facility. Debt issuance costs of $2.6 million and $2.8 million at October 31, 2023 and July 31, 2023, respectively, associated with the revolving credit and delayed draw term loan facilities are recorded in other assets on the Condensed Consolidated Statements of Financial Position. On November 4, 2022, Mallard Buyer Corp., Selway Wine Company and certain other subsidiaries of The Duckhorn Portfolio, Inc. (collectively, the “Borrowers”) entered into the Amended and Restated First Lien Loan and Security Agreement (“Credit Facility” and “Credit Agreement”) with the lenders named therein and BMO Harris (as successor in interest to Bank of the West), as administrative agent and collateral agent. The 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 Credit Agreement is November 4, 2027. The principal of the term loan facility is repayable in quarterly installments equal to $2.4 million, with a final installment equal to the entire remaining outstanding principal amount due on the maturity date. The 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 Credit Agreement generally bear interest based on the sum of the forward-looking term rate based on the Secured Overnight Financing Rate (“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 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 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 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. As of October 31, 2023, the Company was in compliance with all covenants. At October 31, 2023 and July 31, 2023, the Company had unused capacity of $402.0 million and $412.0 million, respectively, under the revolving credit facility, excluding the incremental seasonal borrowing amount of an additional $30.0 million of capacity. There were no amounts outstanding on the delayed draw term loan, letter of credit sub-facility or the swingline sub-facility at October 31, 2023 or July 31, 2023.

Derivative Instruments

Derivative Instruments	3 Months Ended
	Oct. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	Derivative Instruments The Company manages exposure to interest rates and foreign currency movements by entering into derivative contracts from time to time, as movements in such markets could impact the Company’s financial results. The changes in estimated fair values of derivative instruments result from changes in interest rates and foreign currency exchange rates. Such changes serve to offset exposure in related business assets or liabilities. The Company is exposed to credit loss in the event of nonperformance by a counterparty. Certain of the Company ’ s derivative instruments are subject to master netting agreements. In certain circumstances, this agreement allows the Company to net-settle amounts payable or receivable related to multiple derivative transactions with the same counterparty. The fair values of derivative instruments are presented on a gross basis, even when the derivative instruments are subject to master netting arrangements. Collateral is generally not required of the Company or of the counterparties to the master netting agreements, and no cash collateral was received or pledged under such agreements as of October 31, 2023 or July 31, 2023. 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. 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. 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. As of October 31, 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) October 31, 2023 July 31, 2023 Interest rate swap contract $ 100,000 $ 100,000 Foreign currency forward contracts 167 5,610 Total derivative instruments not designated as hedging instruments $ 100,167 $ 105,610 The Company manages annual barrel purchases by engaging domestic and foreign cooperages to provide specified barrel quantities on agreed delivery dates. A significant portion 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. See Note 9 (Commitments and contingencies) for additional information related to the Company’s barrel purchase commitments. Results of period derivative activity The estimated fair value and classification of derivative instruments on the Condensed Consolidated Statements of Financial Position for October 31, 2023 were as follows: Derivative Assets Derivative Liabilities (in thousands) Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Interest rate swap contract Other assets $ 3,082 Other liabilities $ — Foreign currency forward contract Prepaid expenses and other current assets — Other current liabilities 7 Total derivatives not designated as hedging instruments $ 3,082 $ 7 The estimated fair value and classification of derivative instruments on the Condensed Consolidated Statements of Financial Position for July 31, 2023 were as follows: Derivative Assets Derivative Liabilities (in thousands) Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Interest rate swap contract Other assets $ 1,117 Other liabilities $ — Foreign currency forward contracts Prepaid expenses and other current assets 69 Other current liabilities — Total derivatives not designated as hedging instruments $ 1,186 $ — The amounts and classification of the gains and losses in the Condensed Consolidated Statements of Operations related to derivative instruments not designated as hedging instruments are as follows: Three months ended October 31, (in thousands) Classification 2023 2022 Interest rate swap contract Other income, net $ (1,965) $ (145) Foreign currency forward contracts Other income, net 76 (223) Total gain $ (1,889) $ (368)

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Oct. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The Company applies a fair value hierarchy pursuant to ASC Topic 820, Fair Value Measurement , which consists of three levels of inputs used to measure fair value: Level 1 Inputs to fair value are quoted prices in active markets for identical assets or liabilities; Level 2 Inputs to fair value are based on observable data other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data such as interest rates or yield curves for substantially the full term of the instrument; and Level 3 Inputs to fair value are based on unobservable data for the instrument and are supported by little or no market activity. Following is a description of the valuation methodologies used for instruments measured at fair value in the Condensed Consolidated Financial Statements, as well as the general classification of such instruments under the valuation hierarchy. Interest rate swap contract: The fair value of the Company’s interest rate swap agreement is estimated with the assistance of a third-party, using inputs that can be corroborated by observable market data (Level 2 of the fair value hierarchy). Foreign currency forward contracts: The fair value of the Company’s outstanding foreign currency forward contracts is estimated with the assistance of a third-party, using inputs that can be corroborated by observable market data (Level 2 of the fair value hierarchy). Deferred compensation plan: Contributions to the Company’s deferred compensation plan are managed by a third-party administrative agent. The fair value of the total contributed plan assets and liabilities are based on inputs that can be corroborated by observable market data (Level 2 of the fair value hierarchy). The Company’s other financial instruments consist mainly of cash, accounts receivable, accounts payable, accrued expenses and debt. The carrying value of all other financial instruments, except debt, approximates fair value due to the short-term nature of these assets and liabilities. The carrying value of the Company ’ s debt approximates fair value as the interest rates are variable and reflective of market rates (Level 2 of the fair value hierarchy). The Company’s assets and liabilities measured and recorded at fair value on a recurring basis at October 31, 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: Interest rate swap contract $ — $ 3,082 $ — Deferred compensation plan asset $ — $ 2,387 $ — Liabilities: Deferred compensation liability $ — $ 3,523 $ — Foreign currency forward contracts $ — $ 7 $ — The Company’s assets and liabilities measured and recorded at fair value on a recurring basis at July 31, 2023, were as follows: (in thousands) Fair value measurements using: Quoted prices in active markets (Level 1) Significant other observable inputs Significant unobservable inputs Assets: Interest rate swap contract $ — $ 1,117 $ — Foreign currency forward contracts $ — $ 69 $ — Deferred compensation plan asset $ — $ 2,670 $ — Liabilities: Deferred compensation liability $ — $ 3,261 $ —

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Oct. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Long-term purchase contracts The Company has entered into 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, 2023, the Company had $10.6 million in barrel purchase commitments. During the three months ended October 31, 2023, the Company paid $8.1 million associated with the barrel purchases 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 other income, net on the Condensed Consolidated Statements of Operations. See Note 7 (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, glass and bottling services. The costs related to these contracts are recorded in the period the service is provided. The contracts for custom crush services typically have minimums that the Company is required to pay if certain grape volume thresholds are not delivered. The Company does not record these minimums related to service contracts as contingent liabilities on the Condensed Consolidated Statements of Financial Position given the harvest yield size, resulting volumes and qualities of grape deliveries are not known or estimable until harvest, when all related contingencies would be resolved. Contingent liabilities The Company evaluates pending or threatened litigation, operational events which could result in regulatory or civil penalties, environmental risks and other sources of potential contingent liabilities during the year. In accordance with applicable accounting guidance, the Company establishes an accrued liability when those matters present loss contingencies which are both probable and reasonably estimable. As of October 31, 2023 and July 31, 2023, there were no material contingent obligations requiring accrual or disclosure. In the ordinary course of business, the Company enters into agreements containing standard indemnification provisions. The aggregate maximum potential future liability of the Company under such indemnification provisions is uncertain, as these involve potential future claims against the Company that have not occurred. The Company expects the risk of any future obligations under these indemnification provisions to be remote. As of October 31, 2023 and July 31, 2023, no amounts have been accrued related to such indemnification provisions.

Equity-Based Compensation

Equity-Based Compensation	3 Months Ended
	Oct. 31, 2023
Share-Based Payment Arrangement [Abstract]
Equity-Based Compensation	Equity-Based Compensation In March 2021, the Company ’ s Board of Directors approved the 2021 Equity Incentive Plan (“2021 Equity Plan”), which provides for granting up to 14,003,560 shares of the Company ’ s common stock. Restricted stock units and stock options are granted to certain employees of the Company, advisors and directors (collectively “grants”). The grants are considered equity awards for purposes of calculating compensation expense and are equity-classified in the Condensed Consolidated Statements of Financial Position. Stock options Stock option awards are valued using the Black-Scholes option pricing model to estimate the fair value of each stock option award on the date of grant and expense ratably over the vesting period, generally four years. Stock options have a ten year term. The following table represents the stock option activity: Number of options outstanding Weighted-average exercise price (per share) Weighted-average remaining contractual life (in years) Aggregate intrinsic value (in thousands) Balance at July 31, 2023 2,321,233 $ 15.98 8.0 $ — Granted 1,254,867 9.90 Exercised — — Forfeited (414,743) 15.62 Expired (122,639) 16.64 Balance at October 31, 2023 3,038,718 $ 13.49 8.2 $ 665 Exercisable as of October 31, 2023 830,135 $ 16.39 5.4 $ — The total unrecognized compensation expense related to the 2021 Plan stock options was $9.4 million as of October 31, 2023, which is expected to be recognized over a weighted-average period of 3.2 years. The weighted-average grant-date fair value of options granted during the three months ended October 31, 2023 was $3.98 per share. The following assumptions were applied in the Black-Scholes option pricing model to estimate the grant-date fair value of the stock options granted: Three months ended October 31, 2023 2022 Expected term (in years) (a) 6.22 6.23 Expected dividend yield (b) — % — % Risk-free interest rate (c) 4.55 % 3.96 % Expected volatility (d) 30.9 % 33.9 % _______________________________________________ (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) Due to a lack of sufficient trading history of the Company's common stock, the expected volatility was estimated based on analysis of the historical and implied volatility of the Company's common stock and a group of guideline public companies deemed to be comparable publicly traded peers within the Company’s industry. Restricted stock units Restricted stock units (“RSUs”) are valued using the closing market price of our common stock on the date of grant. Expense is recognized ratably over the vesting period, generally four years for RSUs issued to employees and one year for RSUs issued to our independent directors. 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, 2023 562,861 $ 15.52 Granted 561,098 10.42 Vested (79,639) 14.43 Forfeited (138,253) 15.62 Unvested as of October 31, 2023 906,067 $ 12.44 The total intrinsic value of restricted stock that vested during the three months ended October 31, 2023 was $1.0 million. The total unrecognized compensation expense related to the 2021 Plan RSUs was $9.9 million as of October 31, 2023, which is expected to be recognized over a weighted-average period of 2.8 years. Compensation expense During three months ended October 31, 2023 and 2022, the Company recognized total equity-based compensation expense due to units vesting over their requisite service periods for all plans of $1.2 million and $1.2 million, respectively. The Company recognizes equity-based compensation in selling, general and administrative expenses, net of actual forfeitures as incurred, in the Condensed Consolidated Statements of Operations, except for amounts capitalized to inventories in the Condensed Consolidated Statements of Financial Position.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Oct. 31, 2023
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic earnings per share is calculated by dividing the net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share reflects the dilution that would occur if any potentially dilutive instruments were exercised or converted into shares of common stock. The following is a reconciliation of the Company ’ s basic and diluted earnings per share calculation: Three months ended October 31, (in thousands, except share and per share amounts) 2023 2022 Numerator: Net income attributable to The Duckhorn Portfolio, Inc. $ 15,537 $ 19,815 Denominator: Weighted average number of shares outstanding for basic per share calculation 115,339,774 115,184,161 Effect of dilutive potential shares (a) : Stock options 80,598 11,976 Restricted stock units 31,347 79,555 Adjusted weighted average shares outstanding for diluted per share calculation 115,451,719 115,275,692 Earnings per share attributable to The Duckhorn Portfolio, Inc.: Basic $ 0.13 $ 0.17 Diluted $ 0.13 $ 0.17 _______________________________________________ (a) Calculated using the treasury stock method. For the three months ended October 31, 2023 and 2022, there were 1.2 million and 0.3 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 10 (Equity-based compensation) for the terms of the awards.

Income Taxes

Income Taxes	3 Months Ended
	Oct. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Income tax expense was $5.6 million, with an effective tax rate of 26.6% for the three months ended October 31, 2023, respectively, compared to $7.1 million, with an effective tax rate of 26.3% for the three months ended October 31, 2022. The effective tax rates for both periods presented were higher than the federal statutory rate of 21% primarily due to the impact of state income taxes.

Subsequent Events

Subsequent Events	3 Months Ended
	Oct. 31, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On November 16, 2023, the Company, Auguste Merger Sub, Inc., a California corporation and an indirect wholly-owned subsidiary of the Company (“Merger Sub”), Brown-Forman Corporation, a Delaware corporation (“Brown-Forman”), and Sonoma-Cutrer Vineyards, Inc., a California corporation and a wholly-owned subsidiary of Brown-Forman (“Sonoma-Cutrer”), entered into an Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which Merger Sub will merge with and into Sonoma-Cutrer (the “Merger”) with Sonoma-Cutrer continuing as the surviving entity after the Merger. The board of directors of the Company approved the Merger Agreement, the Merger and the other transactions contemplated by the Merger Agreement. Sonoma-Cutrer Vineyards specializes in luxury Chardonnay brands. Sonoma-Cutrer owns six estate vineyards with approximately 1,100 acres in both the Russian River Valley and Sonoma Coast appellations. It sells its luxury wine across the U.S. in the wholesale channel through distributors and in the DTC channel with retail price points ranging from $20 to $50 per bottle. At consummation of the Merger, Brown-Forman will receive approximately $400.0 million. The purchase price is comprised of 31,531,532 shares of the Company’s common stock valued at approximately $350.0 million and $50.0 million payable in cash, subject to adjustments set forth in the Merger Agreement, including for cash, working capital, indebtedness and transaction expenses. The cash consideration is expected to be funded through cash on hand and borrowings under the Company’s revolving credit facility. The transaction is expected to close in the third quarter of the Company’s Fiscal 2024, subject to regulatory approvals and customary closing conditions.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2023	Oct. 31, 2022
Pay vs Performance Disclosure
Net income attributable to The Duckhorn Portfolio, Inc.	$ 15,537	$ 19,815

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Oct. 31, 2023 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Pete Przybylinski [Member]
Trading Arrangements, by Individual
Name	Pete Przybylinski
Title	Executive Vice President, Chief Sales Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	October 6, 2023
Arrangement Duration	177 days
Aggregate Available	140,000
Zachary Rasmuson [Member]
Trading Arrangements, by Individual
Name	Zachary Rasmuson
Title	Executive Vice President, Chief Operating Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	October 6, 2023
Arrangement Duration	177 days
Aggregate Available	48,000

Basis of Presentation and Rec_2

Basis of Presentation and Recent Accounting Pronouncements (Policies)	3 Months Ended
	Oct. 31, 2023
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation The Company’s Condensed Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“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 fiscal year ending July 31, 2024, for any other interim period or for any future year.
Principles of consolidation	Principles of consolidation The Condensed Consolidated Financial Statements include the accounts of The Duckhorn Portfolio, Inc. and its subsidiaries, including a consolidated variable interest entity (“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 in conformity with U.S. GAAP 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. Actual results could differ from those estimates.
Preferred stock	Preferred stock
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 Accounting Standards Codification (“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. Thus, it represents a Level 3 measurement as defined in ASC Topic 820, Fair Value Measurement
Recently adopted accounting pronouncements	Recently adopted accounting pronouncements No new accounting pronouncements issued or effective as of October 31, 2023 have had, or are expected to have, a material impact on the Condensed Consolidated Financial Statements or the related disclosures.
Derivative instruments	The changes in estimated fair values of derivative instruments result from changes in interest rates and foreign currency exchange rates. Such changes serve to offset exposure in related business assets or liabilities. The Company is exposed to credit loss in the event of nonperformance by a counterparty. Certain of the Company ’ s derivative instruments are subject to master netting agreements. In certain circumstances, this agreement allows the Company to net-settle amounts payable or receivable related to multiple derivative transactions with the same counterparty. The fair values of derivative instruments are presented on a gross basis, even when the derivative instruments are subject to master netting arrangements. Collateral is generally not required of the Company or of the counterparties to the master netting agreements, and no cash collateral was received or pledged under such agreements as of October 31, 2023 or July 31, 2023. The Company does not enter into derivative instruments for trading or speculative purposes. The Company ’
Contract balances	Contract balances
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
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.

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Oct. 31, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue	The following table presents the percentages of consolidated net sales disaggregated by sales channels: Three months ended October 31, 2023 2022 Wholesale - Distributors 77.0 % 76.4 % Wholesale - California direct to trade (a) 15.6 15.8 DTC (b) 7.4 7.8 Net sales (c) 100.0 % 100.0 % _______________________________________________ (a) Includes $0.7 million and $0.6 million of sales related to bulk and grape sales for the three months ended October 31, 2023 and 2022, respectively. (b) Includes shipping and handling revenue of $0.1 million for each of the three months ended October 31, 2023 and 2022, respectively. (c) For the three months ended October 31, 2023, excludes lease income of $0.9 million from Geyserville winery acquired in June 2023.

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Oct. 31, 2023
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories were comprised of the following: (in thousands) October 31, 2023 July 31, 2023 Finished goods $ 134,070 $ 145,355 Work in progress 234,856 161,795 Raw materials 20,273 15,077 Inventories $ 389,199 $ 322,227

Accrued Expenses (Tables)

Accrued Expenses (Tables)	3 Months Ended
	Oct. 31, 2023
Payables and Accruals [Abstract]
Schedule of Accrued Expenses	Accrued expenses were comprised of the following: (in thousands) October 31, 2023 July 31, 2023 Bulk wine and other received not invoiced $ 46,433 $ 529 Trade spend (a) 16,879 12,721 Income taxes payable (b) 5,042 11,019 Deferred compensation liability (c) 3,523 3,261 Barrel purchases 2,271 2,589 Accrued professional fees 2,314 599 Accrued invoices and other accrued expenses 13,560 7,528 Accrued expenses $ 90,022 $ 38,246 _______________________________________________ (a) Trade spend refers to estimated amounts the Company owes to distributors for depletion-based incentives. (b) Effective March 2023, as revised in October 2023, the IRS postponed certain tax filings and payment deadlines, until November 2023, in areas designated with eligible Federal Emergency Management Agency declarations. During the third fiscal quarter of 2023, the Company deferred federal and state tax payments which was paid in full during the three months ended October 31, 2023. (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 was $2.4 million and $2.7 million at October 31, 2023 and July 31, 2023, respectively, and are included in other assets on the Condensed Consolidated Statements of Financial Position.

Debt (Tables)

Debt (Tables)	3 Months Ended
	Oct. 31, 2023
Debt Disclosure [Abstract]
Schedule of Long-Term Debt Instruments	Long-term debt, net of current maturities and debt issuance costs was comprised of the following: (in thousands) October 31, 2023 July 31, 2023 Revolving line of credit $ 23,000 $ 13,000 Term loan, first lien 218,332 220,832 Total debt 241,332 233,832 Less: Current maturities of long-term debt (9,721) (9,721) Total long-term debt 231,611 224,111 Debt issuance costs (a) (463) (492) Total long-term debt, net of current maturities and debt issuance costs $ 231,148 $ 223,619 _______________________________________________ (a) Debt issuance costs are the costs associated with the term loan facility. Debt issuance costs of $2.6 million and $2.8 million at October 31, 2023 and July 31, 2023, respectively, associated with the revolving credit and delayed draw term loan facilities are recorded in other assets on the Condensed Consolidated Statements of Financial Position.

Derivative Instruments (Tables)

Derivative Instruments (Tables)	3 Months Ended
	Oct. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Interest Rate Derivatives	As of October 31, 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) October 31, 2023 July 31, 2023 Interest rate swap contract $ 100,000 $ 100,000 Foreign currency forward contracts 167 5,610 Total derivative instruments not designated as hedging instruments $ 100,167 $ 105,610
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value	The estimated fair value and classification of derivative instruments on the Condensed Consolidated Statements of Financial Position for October 31, 2023 were as follows: Derivative Assets Derivative Liabilities (in thousands) Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Interest rate swap contract Other assets $ 3,082 Other liabilities $ — Foreign currency forward contract Prepaid expenses and other current assets — Other current liabilities 7 Total derivatives not designated as hedging instruments $ 3,082 $ 7 The estimated fair value and classification of derivative instruments on the Condensed Consolidated Statements of Financial Position for July 31, 2023 were as follows: Derivative Assets Derivative Liabilities (in thousands) Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Interest rate swap contract Other assets $ 1,117 Other liabilities $ — Foreign currency forward contracts Prepaid expenses and other current assets 69 Other current liabilities — Total derivatives not designated as hedging instruments $ 1,186 $ —
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 October 31, (in thousands) Classification 2023 2022 Interest rate swap contract Other income, net $ (1,965) $ (145) Foreign currency forward contracts Other income, net 76 (223) Total gain $ (1,889) $ (368)

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Oct. 31, 2023
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The Company’s assets and liabilities measured and recorded at fair value on a recurring basis at October 31, 2023, were as follows: (in thousands) Fair value measurements using: Quoted prices in active markets (Level 1) Significant other observable inputs Significant unobservable inputs Assets: Interest rate swap contract $ — $ 3,082 $ — Deferred compensation plan asset $ — $ 2,387 $ — Liabilities: Deferred compensation liability $ — $ 3,523 $ — Foreign currency forward contracts $ — $ 7 $ — The Company’s assets and liabilities measured and recorded at fair value on a recurring basis at July 31, 2023, were as follows: (in thousands) Fair value measurements using: Quoted prices in active markets (Level 1) Significant other observable inputs Significant unobservable inputs Assets: Interest rate swap contract $ — $ 1,117 $ — Foreign currency forward contracts $ — $ 69 $ — Deferred compensation plan asset $ — $ 2,670 $ — Liabilities: Deferred compensation liability $ — $ 3,261 $ —

Equity-Based Compensation (Tabl

Equity-Based Compensation (Tables)	3 Months Ended
	Oct. 31, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of Share-based Payment Arrangement, Option, Activity	The following table represents the stock option activity: Number of options outstanding Weighted-average exercise price (per share) Weighted-average remaining contractual life (in years) Aggregate intrinsic value (in thousands) Balance at July 31, 2023 2,321,233 $ 15.98 8.0 $ — Granted 1,254,867 9.90 Exercised — — Forfeited (414,743) 15.62 Expired (122,639) 16.64 Balance at October 31, 2023 3,038,718 $ 13.49 8.2 $ 665 Exercisable as of October 31, 2023 830,135 $ 16.39 5.4 $ —
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: Three months ended October 31, 2023 2022 Expected term (in years) (a) 6.22 6.23 Expected dividend yield (b) — % — % Risk-free interest rate (c) 4.55 % 3.96 % Expected volatility (d) 30.9 % 33.9 % _______________________________________________ (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) Due to a lack of sufficient trading history of the Company's common stock, the expected volatility was estimated based on analysis of the historical and implied volatility of the Company's common stock and a group of guideline public companies deemed to be comparable publicly traded 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, 2023 562,861 $ 15.52 Granted 561,098 10.42 Vested (79,639) 14.43 Forfeited (138,253) 15.62 Unvested as of October 31, 2023 906,067 $ 12.44

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Oct. 31, 2023
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Common Shares	The following is a reconciliation of the Company ’ s basic and diluted earnings per share calculation: Three months ended October 31, (in thousands, except share and per share amounts) 2023 2022 Numerator: Net income attributable to The Duckhorn Portfolio, Inc. $ 15,537 $ 19,815 Denominator: Weighted average number of shares outstanding for basic per share calculation 115,339,774 115,184,161 Effect of dilutive potential shares (a) : Stock options 80,598 11,976 Restricted stock units 31,347 79,555 Adjusted weighted average shares outstanding for diluted per share calculation 115,451,719 115,275,692 Earnings per share attributable to The Duckhorn Portfolio, Inc.: Basic $ 0.13 $ 0.17 Diluted $ 0.13 $ 0.17 _______________________________________________ (a) Calculated using the treasury stock method.

Description of Business (Detail

Description of Business (Details) - Secondary Offering $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended
	Apr. 30, 2023 $ / shares shares	Apr. 30, 2023 USD ($) $ / shares
Subsidiary, Sale of Stock [Line Items]
Sale of stock, number of shares issued in transaction | shares	6,000,000
Sale of stock, price per share (in dollars per share) | $ / shares	$ 15.35	$ 15.35
Payments of deferred offering costs | $		$ 0.4

Basis of Presentation and Rec_3

Basis of Presentation and Recent Accounting Pronouncements - (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	12 Months Ended
	Oct. 31, 2023	Jul. 31, 2023
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	$ 2.3

Revenue - Schedule of Disaggreg

Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2023	Oct. 31, 2022
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, percent	100%	100%
Revenue	$ 102,509	$ 108,171
Lease income	900
Bulk and Grape Sales
Disaggregation of Revenue [Line Items]
Revenue	700	600
Shipping and Handling
Disaggregation of Revenue [Line Items]
Revenue	$ 100	$ 100
Wholesale - Distributors
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, percent	77%	76.40%
Wholesale - California direct to trade
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, percent	15.60%	15.80%
DTC
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, percent	7.40%	7.80%

Revenue - Narrative (Details)

Revenue - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2023	Oct. 31, 2022	Jul. 31, 2023
Revenue from Contract with Customer [Abstract]
Allowance for credit losses on current accounts receivable	$ 500		$ 500
Deferred revenue	11,199		$ 66
Revenue recognized	$ 0	$ 200

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Oct. 31, 2023	Jul. 31, 2023
Inventory Disclosure [Abstract]
Finished goods	$ 134,070	$ 145,355
Work in progress	234,856	161,795
Raw materials	20,273	15,077
Inventories	$ 389,199	$ 322,227

Inventories - Narrative (Detail

Inventories - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Oct. 31, 2023	Oct. 31, 2022	Jul. 31, 2023
Inventory Disclosure [Abstract]
Excess and obsolete inventory reserve	$ 1.2		$ 0.9
Capitalized depreciation costs	3.8	$ 3.5
Capitalized leases costs used in production of inventory	$ 1.2	$ 1.1

Accrued Expenses - (Details)

Accrued Expenses - (Details) - USD ($) $ in Thousands	Oct. 31, 2023	Jul. 31, 2023
Payables and Accruals [Abstract]
Bulk wine and other received not invoiced	$ 46,433	$ 529
Trade spend	16,879	12,721
Income taxes payable	5,042	11,019
Deferred compensation liability	3,523	3,261
Barrel purchases	2,271	2,589
Accrued professional fees	2,314	599
Accrued invoices and other accrued expenses	13,560	7,528
Accrued expenses	90,022	38,246
Cash surrender value of life insurance	$ 2,400	$ 2,700

Debt - Schedule of Long Term De

Debt - Schedule of Long Term Debt (Details) - USD ($) $ in Thousands	Oct. 31, 2023	Jul. 31, 2023
Line of Credit Facility [Line Items]
Long-term debt, gross	$ 241,332	$ 233,832
Less: Current maturities of long-term debt	(9,721)	(9,721)
Total long-term debt	231,611	224,111
Total long-term debt, net of current maturities and debt issuance costs	231,148	223,619
Revolving Credit and Delayed Draw Term Loan
Line of Credit Facility [Line Items]
Debt issuance costs, gross	2,600	2,800
Line of Credit | Revolving Line of Credit
Line of Credit Facility [Line Items]
Long-term debt, gross	23,000	13,000
Secured Debt | Term Loan Facility
Line of Credit Facility [Line Items]
Long-term debt, gross	218,332	220,832
Debt issuance costs	$ (463)	$ (492)

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($)	Nov. 04, 2022	Oct. 31, 2023	Jul. 31, 2023
Senior Secured Credit Facility
Debt Instrument [Line Items]
Incremental facility	$ 400,000,000
First Lien Senior Secured Credit Facilities
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 675,800,000
First Lien Senior Secured Credit Facilities | Maximum
Debt Instrument [Line Items]
Debt capitalization ratio	0.55
First Lien Senior Secured Credit Facilities | Minimum
Debt Instrument [Line Items]
Debt capitalization ratio	1.15
First Lien Senior Secured Credit Facilities | Less Than or Equal to 33% of Average Availability | SOFR
Debt Instrument [Line Items]
Loan margin (percent)	1.50%
First Lien Senior Secured Credit Facilities | Greater Than 33% and Less Than or Equal to 66% of Average Availability | SOFR
Debt Instrument [Line Items]
Loan margin (percent)	1.25%
First Lien Senior Secured Credit Facilities | Greater Than 66% of Average Availability | SOFR
Debt Instrument [Line Items]
Loan margin (percent)	1%
First Lien Senior Secured Credit Facilities | Revolving Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 425,000,000
First Lien Senior Secured Credit Facilities | Term Loan Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	225,800,000
Debt instrument, periodic payment, principal	2,400,000
First Lien Senior Secured Credit Facilities | Delayed Draw Term Loan Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 25,000,000
First Lien Senior Secured Credit Facilities | Term Loan and Delayed Draw Term Loan Facilities | SOFR
Debt Instrument [Line Items]
Loan margin (percent)	1.625%
First Lien Senior Secured Credit Facilities | Term Loan and Delayed Draw Term Loan Facilities | SOFR | Variable Rate Component One
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	0.10%
First Lien Senior Secured Credit Facilities | Term Loan and Delayed Draw Term Loan Facilities | SOFR | Variable Rate Component Two
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	0.15%
First Lien Loan Agreement
Debt Instrument [Line Items]
Line of credit		$ 0	$ 0
First Lien Loan Agreement | Revolving Line of Credit
Debt Instrument [Line Items]
Unused capacity		402,000,000	412,000,000
Line Of credit facility, remaining borrowing capacity, accordion feature		$ 30,000,000	$ 30,000,000

Derivative Instruments - Narrat

Derivative Instruments - Narrative (Details) - USD ($)	Oct. 31, 2023	Jul. 31, 2023
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	Oct. 31, 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	Oct. 31, 2023	Jul. 31, 2023
Derivative [Line Items]
Notional amount	$ 100,167	$ 105,610
Interest rate swap contract
Derivative [Line Items]
Notional amount	100,000	100,000
Foreign currency forward contracts
Derivative [Line Items]
Notional amount	$ 167	$ 5,610

Derivative Instruments - Estima

Derivative Instruments - Estimated Fair Value and Classification of Derivative Instruments on the Condensed Consolidated Statements of Financial Position (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands	Oct. 31, 2023	Jul. 31, 2023
Derivatives, Fair Value [Line Items]
Derivative asset	$ 3,082	$ 1,186
Derivative liability	7	0
Interest rate swap contract | Other assets
Derivatives, Fair Value [Line Items]
Derivative asset	3,082	1,117
Interest rate swap contract | Other liabilities
Derivatives, Fair Value [Line Items]
Derivative liability	0	0
Foreign currency forward contracts | Prepaid expenses and other current assets
Derivatives, Fair Value [Line Items]
Derivative asset	0	69
Foreign currency forward contracts | Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liability	$ 7	$ 0

Derivative Instruments - Amount

Derivative Instruments - Amounts and Classification of the Gains and Losses in the Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2023	Oct. 31, 2022
Derivative [Line Items]
Total gain	$ (1,889)	$ (368)
Not Designated as Hedging Instrument
Derivative [Line Items]
Total gain	(1,889)	(368)
Not Designated as Hedging Instrument | Interest rate swap contract
Derivative [Line Items]
Total gain	(1,965)	(145)
Not Designated as Hedging Instrument | Foreign currency forward contracts
Derivative [Line Items]
Total gain	$ 76	$ (223)

Fair Value Measurements - (Deta

Fair Value Measurements - (Details) - USD ($) $ in Thousands	Oct. 31, 2023	Jul. 31, 2023
Quoted prices in active markets (Level 1)
Assets:
Deferred compensation plan asset	$ 0	$ 0
Liabilities:
Deferred compensation liability	0	0
Quoted prices in active markets (Level 1) | Interest rate swap contract
Assets:
Derivative asset	0	0
Quoted prices in active markets (Level 1) | Foreign currency forward contracts
Assets:
Derivative asset		0
Liabilities:
Foreign currency forward contracts	0
Significant other observable inputs (Level 2)
Assets:
Deferred compensation plan asset	2,387	2,670
Liabilities:
Deferred compensation liability	3,523	3,261
Significant other observable inputs (Level 2) | Interest rate swap contract
Assets:
Derivative asset	3,082	1,117
Significant other observable inputs (Level 2) | Foreign currency forward contracts
Assets:
Derivative asset		69
Liabilities:
Foreign currency forward contracts	7
Significant unobservable inputs (Level 3)
Assets:
Deferred compensation plan asset	0	0
Liabilities:
Deferred compensation liability	0	0
Significant unobservable inputs (Level 3) | Interest rate swap contract
Assets:
Derivative asset	0	0
Significant unobservable inputs (Level 3) | Foreign currency forward contracts
Assets:
Derivative asset		$ 0
Liabilities:
Foreign currency forward contracts	$ 0

Commitments and Contingencies -

Commitments and Contingencies - (Details) T in Thousands, $ in Millions	3 Months Ended	12 Months Ended
	Oct. 31, 2023 USD ($) T	Jul. 31, 2022 USD ($) T	Jul. 31, 2023 USD ($)
Commitments and Contingencies [Line Items]
Long-term purchase contract, amount purchased, mass | T	32	29
Purchase commitment, remaining amount committed	$ 8.1		$ 10.6
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	$ 85.7	$ 71
Minimum
Commitments and Contingencies [Line Items]
Long-term purchase contract, period	1 year
Maximum
Commitments and Contingencies [Line Items]
Long-term purchase contract, period	16 years

Equity-Based Compensation - Nar

Equity-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Oct. 31, 2023	Oct. 31, 2022	Mar. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total equity-based compensation expense	$ 1.2	$ 1.2
2021 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grants (in shares)			14,003,560
Unrecognized compensation expense of stock options	$ 9.4
Weighted-average grant-date fair value of options granted (in dollars per share)	$ 3.98
2021 Equity Incentive Plan | Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Expiration period	10 years
Unrecognized compensation expense, period for recognition (years)	3 years 2 months 12 days
2021 Equity Incentive Plan | RSU
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense, period for recognition (years)	2 years 9 months 18 days
Fair value of vested restricted shares	$ 1
Unrecognized compensation expense	$ 9.9

Equity-Based Compensation - Sto

Equity-Based Compensation - Stock Option Activity (Details) - 2021 Equity Incentive Plan - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Oct. 31, 2023	Jul. 31, 2023
Number of options outstanding
Balance as of beginning of period (in shares)	2,321,233
Granted (in shares)	1,254,867
Exercised (in shares)	0
Forfeited (in shares)	(414,743)
Expired (in shares)	(122,639)
Balance as of ending of period (in shares)	3,038,718	2,321,233
Exercisable (shares)	830,135
Weighted-average exercise price (per share)
Balance as of beginning of period (in dollars per share)	$ 15.98
Granted (in dollars per share)	9.90
Exercised (in dollars per share)	0
Forfeited (in dollars per share)	15.62
Expired (in dollars per share)	16.64
Balance as of ending of period (in dollars per share)	13.49	$ 15.98
Exercisable (in dollars per share)	$ 16.39
Additional disclosures:
Weighted-average remaining contractual life (in years)	8 years 2 months 12 days	8 years
Exercisable, weighted-average remaining contractual life (in years)	5 years 4 months 24 days
Aggregate intrinsic value	$ 665	$ 0
Exercisable, aggregate intrinsic value	$ 0

Equity-Based Compensation - Val

Equity-Based Compensation - Valuation Assumptions (Details) - 2021 Equity Incentive Plan - Stock options	3 Months Ended
	Oct. 31, 2023	Oct. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 years 2 months 19 days	6 years 2 months 23 days
Expected dividend yield (percent)	0%	0%
Risk-free interest rate (percent)	4.55%	3.96%
Expected volatility (percent)	30.90%	33.90%

Equity-Based Compensation - Act

Equity-Based Compensation - Activity for Awards (Details) - RSU - 2021 Equity Incentive Plan	3 Months Ended
	Oct. 31, 2023 $ / shares shares
Number of units
Unvested, beginning (in shares) | shares	562,861
Granted (in shares) | shares	561,098
Vested (in shares) | shares	(79,639)
Forfeited (in shares) | shares	(138,253)
Unvested, ending (in shares) | shares	906,067
Weighted-average grant-date fair value (per share)
Unvested, beginning (in dollars per share) | $ / shares	$ 15.52
Granted (in dollars per share) | $ / shares	10.42
Vested (in dollars per share) | $ / shares	14.43
Forfeited (in dollars per share) | $ / shares	15.62
Unvested, ending (in dollars per share) | $ / shares	$ 12.44

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Basic and Diluted Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Oct. 31, 2023	Oct. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net income attributable to The Duckhorn Portfolio, Inc.	$ 15,537	$ 19,815
Denominator:
Weighted average number of shares outstanding for basic per share calculation (in shares)	115,339,774	115,184,161
Adjusted weighted average shares outstanding for diluted per share calculation (in shares)	115,451,719	115,275,692
Earnings per share attributable to The Duckhorn Portfolio, Inc.:
Basic (in dollars per share)	$ 0.13	$ 0.17
Diluted (in dollars per share)	$ 0.13	$ 0.17
Stock options
Denominator:
Effect of dilutive potential shares (in shares)	80,598	11,976
Restricted stock units
Denominator:
Effect of dilutive potential shares (in shares)	31,347	79,555

Earnings Per Share - Narrative

Earnings Per Share - Narrative (Details) - shares shares in Millions	3 Months Ended
	Oct. 31, 2023	Oct. 31, 2022
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares (in shares)	1.2	0.3

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2023	Oct. 31, 2022
Income Tax Disclosure [Abstract]
Income tax expense	$ 5,629	$ 7,087
Effective income tax rate, percent	26.60%	26.30%

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event - Sonoma-Cutrer Vineyards $ in Millions	Nov. 16, 2023 USD ($) a vineyard $ / bottle shares
Subsequent Event [Line Items]
Number of real estate properties | vineyard	6
Area of property (acre) | a	1,100
Brown-Forman Corporation
Subsequent Event [Line Items]
Purchase price of acquisition	$ 400
Number of shares of common stock to be transferred | shares	31,531,532
Value of common stock to be transferred	$ 350
Amount payable in cash	$ 50
Maximum
Subsequent Event [Line Items]
Luxury wine price (usd per bottle) | $ / bottle	50
Minimum
Subsequent Event [Line Items]
Luxury wine price (usd per bottle) | $ / bottle	20