NAPA - Earnings call 4 2023 | The Duckhorn Portfolio, Inc.

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Operator

Good afternoon, and thank you for attending today's Duckhorn Portfolio Q4 and Full Year 2023 Earnings Conference Call. My name is [ Sierra ], and I'll be your moderator for today. [Operator Instructions] I would now like to pass the conference over to our host, Sean Sullivan. Please proceed.

Sean Sullivan

Good afternoon, and welcome to The Duckhorn Portfolio's fourth quarter and fiscal year 2023 earnings conference call.

call Fall today's Financial our on Officer. me is Jung, Jennifer Chief Joining

remarks, access us that X:XX quarter before year and we have XXXX will results ended now, my was like contains release today's I Jennifer Time. Following opening would approximately environment accompanying with at conclude on Eastern earnings walk you XX The July the as we on issuing a everyone questions.By are details remarks press shortly some for it, our the the uncertainties. will And then begin, to that and forward-looking we of based through includes be an fiscal release days.Before conclusion website guidance for XXXX, discussion year distributed currently financial are today. fiscal presentation see PM such, at as the quarterly closing the and should XX, company's take will to the today's fiscal call, I and that statements webcast the after of and our remind accessible risks ir.duckhorn.com. archived we next

no was number of have perspective earnings XX, retail trends provide otherwise non-GAAP and the growth revise forward-looking to measures [ discussion cause SEC differ as in of And on business, future.We same non-GAAP I If company's to factors which recent period the earnings these obligation leadership see data make these forward-looking about filings, most statements references July unless or the in measures financial from sourced scanner the of materially the XXXX, ended the and known could prior note underlying we share a like undertakes you you update would consumption remember, a measures. release, release growth well cited that company's company all most performance the of the actual update to useful will that that our to refer Duckhorn's comparable outlook, to the for an noted.Before our as as results We Please in statements. in financial GAAP with investors dollar a XX-week these included period from team. channels, believe we'll U.S. the our today's Circana, on refer measures.In company's year discuss formerly is IRI. ] addition, to versus please call tax full to reconciliation financial and will

Duckhorn. the have in announce to as retires past over years Board years Interim through pleased also to seen collective Officer company's efforts with Officer between with Portfolio result leadership quality Officer family Duckhorn The As leadership years extensive its choice well made amazing work to a America XX this years back, than nearly Portfolio success Alex a press Deirdre the her PLC. Directors employees. we Alex's served Portfolio.In of Chief our Duckhorn and to excellent that our is transition, She the always the Executive as unwavering of issued at that Alex of for to him accepting experience Deirdre Chief At you of wish also and of I'm been role in ago, President, about leadership the North collaborative XX his key release XX as have Diageo Ryan Chief our few excitement We in personal The matters. may XXXX service light highest focus has core, announced Diageo. in the retirement, in and thank passionate Since boast Executive and The XXXX. on moments nearly team XXXX, a served and Chairman, beverage the she XXXX as colleagues Duckhorn commitment producing Deirdre management given the our is our to Financial My this spent of of that President, XXX our close company.Stepping her XXXX, me leadership Company continues act voted industry. veteran to at team of collaborator most lead joined appoint Officer alcohol she has and more up than an positions wines. company and to early our at From Deirdre three Executive expertise of and important been our Mahlan philosophy, of Chairwoman. Chief more and Diageo

be by XX%. success. role Our at like have of results, to will soon with always start EBITDA in and of look to team, pleased Deirdre adjusted into the Net our the our the how know financial to been always I'd values fourth forward year fourth saying new settles of very now and getting company.Moving to as to quarter, We we our excellence by growth our full in her foundation she quarter are year complemented commitment sales and our performance. XX% grew year growth full sales X%, full you resulting

in up the at broad be are positive in period we XX-week wine U.S. that XX-week corner. above, segment, July ended will drive and retail the leveraging back to to wines the growing and XX, our a details some Stepping $XX seems the our additional the the see strength, Our $XX turning wine off.Before brand same pleased profitable signs trends about network, evolving industry observations sales. with growth including subsegment our and channel total DTC on luxury at Jennifer through wine wholesale turned discusses strategies in The expanding our period. industry, grew performance, XXXX; recent continues to share X.X% sales our portfolio, to view, I pay and

segment measured X.X% during We continue X.X% period, on broader the a Portfolio segment the luxury basis. for The outpace Circana. to grew same just as full-year by the luxury Duckhorn versus

segment and by few a fiscal would the in highlights take wine to We luxury wine our care a coming of I rebound like fourth ability remain in outperform are signs from to this and continue note showing the quarter. encouraged to trends year.Now, confident

in year. fourth the the on achieved the planned expansion, were growth reflects improved the given quarter, of and the performance inventories offering growth where wholesale increased up We in Kosta take our year.Second, within our channel expectations.Third, line which Browne the take but the our remained accounts $XX shipment to by topline, fourth growing quarter. in cadence performed expectations, to to line offering quarter the to we in quarter. seasonality update the net with sold. growth, Wholesale with prior the full the earlier this year, dip an and First, last Kosta versus growth strategy, volume growth gross Browne me EBITDA year. posted leader shift our spend.Let wholesale sales margin wines you strong resulting depletion robust growth; the moment with and over expectations on grew XX.X% our Browne fourth margin Direct-to-consumer and we increased growth continue with the quarter we from care.And the we offering with the net quarter year outpaced benefited from modestly end patterns, third for XX.X%, net most Appellation prior aspect the quarter increasing XX%, were segment, depletion Appellation growth with number a Consistent third of in lean by this. strongest in portfolio expected typical be The luxury fourth the opportunistically driven XX% Appellation sales luxury of in a XX%, of which of our importantly, XX.X% shift another at the adjusted over of our And are Kosta robust from trade consistent acceleration and an fiscal the year. our the quarter of shipment category finally, sales

of are total addressable channel, our for our we of its our annual sold and future target calculate luxury a for in part As number set the assessment market growth. wines wholesale accounts which the of

are We XXXX, significant the number of of in XX, XX, white to to XX,XXX sold of from than number space. XX% pleased accounts. as as June greater the XXXX, reflecting remains of There June XX,XXX grow accounts see growth

We X County. accounts on would to our in acquired June grow we share the are to production CAGR the update to brief of a number wines X% at of years.I in Sonoma are at a winery like X% next the targeting that which sold over

capital. reduces our affording production As future we cost of an future optimize use the capacity to Production our By and view to into our assets reliance noted greater us takes as future growth this strategy and in wineries our performance between and visibility balance our years, a to longer-term this before, respect acquisition investment the and growth, and fiscal And plans. optionality, and the our in acquisition an processing, in storage of have with is over performance.With efficient the goods production in optimizing acquisition long-term with Jennifer a on requirements meet processes rarely view scale our of hand I'll California. third-party we production of that, respect our to use our QX guidance. to manner this enhances available now us and financial custom are winery preliminary call bottling, diversification our quality wines, through to take increases of XXXX brand crush and in-house the reflects partners that custom of

Jennifer Fall Jung

fourth expectations. of Kosta supported to $XXX.X million, and and prior our growth, volume compared sales into in everyone.Beginning with meaningfully this afternoon, shift were the driven and offering our you, year, Sean; series strong the both growth by year. Browne The Appellation by price was with Thank consistent good net of increase topline, an XX.X% mix quarter the

strategy and increases the received and pricing year wines, long-term retailers past alike. consumers for fiscal by our luxury price were our a have We well planned during both

was previously the Appellation price continue Browne net from of offering. of shift sales take portfolio.Our care driver the a discussed at points growth, DXC Kosta major benefiting We the to channel consolidated series our in all cadence within

fourth per in As net simply driven a was the wholesale growth demand a a the quarter. showing shift the labels prior and were quarter.Wholesale growth of a reminder, grew by a still growth continued on-premise full posted account. in quarter, third base from off-premise this sales our the account number this perspective, fourth in year. tailwind quarter, a On on-premise depletion growth depletion year growth channel strong that the of the basis, quarter our growth shipment national sold, double-digit the a Despite accounts growth tough sub-channel headwind sub-channel and from imbalanced had off-premise fiscal but the outperforming comparison a and reopening, lapping depletion, movement in outpaced benefited the cadence driver key shipment for was is strength in on-premise accounts.From we that and

XX.X% on-premise combination pricing. of Decoy other calls, of in trajectory that we lists the exclusive by sub-channel was brands, direct-to-trade expand this on means driven on its of over growth wines year, expansion sales noted in our year fine channel.The our to sub-channel to have volume with dining restaurants placement on quarter, case prior quarter, As Decoy led and of focus growth wine we emphasize brand luxury prior wines by up and an the continued mix wholesale by the on locations.To earnings producer prior performance a and distributor impressive Vineyard a as our briefly, California X.X% favorable net the healthy continues sub-channel fourth and winery Duckhorn Limited the the increasing compared volumes in

shift anticipated pleased already to compared largely which state. year. prior channel given to our is the the The in strongest California, offering. direct-to-consumer increase when increased are This XX% cadence this Kosta was Browne We growth of see our

would in Excluding the increased timing the quarter. the sales BXC have impact net shift, of solidly

higher XX.X% by a and $XX.X share, million higher million $X.XX offset the was expenses.Overall, Adjusted operating Our $XX.X The of was levels.Fourth XX.X% versus last increase our $XX workforce primarily compared million, timing our million offering year-over-year gross selling, deliver were nearly was a year, which our improved an series and year. compensation sales or prior and million $XX.X $XX.X or EBITDA higher planned administrative operating is net as pre-pandemic The XX.X% out result in $X.X year. margin XXX quarter of year-over-year, invest increase general spend we taxes.Adjusted improving $X.X higher EBITDA or X.X%. to expenses, as quarter higher our business room quarter, as was optimization, adjusted growth is increase debt percent channel year or discounting.Total XXX was million per-person Adjusted driven than to our per to direct-to-consumer by our increases expenses the and in basis end profit through long-term doubled margin Browne interest The net pricing the partially shift This price of $XX.X engagement margin improved and strong due attributed to and tasting successful million, net was basis in strategy from income compared quarter per million of a The growth. approximately our million, gross At solid lower drive increase $X.XX of Portfolio. increase in a to primarily margins, result costs of or diluted million. of Appellation fourth Duckhorn was year. income by net increase continue in was an points fourth prior $XX.X end proven the Kosta driven cash to an income our to wholesale $XXX.X as we strategy.Net gross customer diluted a higher represents prior the on share. up income had by and points gross partially total the the and higher at of sales of offset of

our As times X.X XXXX. a ratio our to for declined result, net leverage year turn fiscal to full initial outlook debt.Let's now

due believe wine industry customer we superior uncertainty wine discretionary well-positioned spending, model. we taking share outperforming While our overall diversified can that strength highly mindful to we scaled, and ongoing business continue in are brand the are macro and impact luxury to

a free our to to volume-driven and net of X%. in of but increase sales realize $XXX This consistent to growth Adjusted X%. per percentage profitability Interest approximately to late to pressure XX% $XXX with SG&A represents expect includes topline to in approximately X% to GAAP $X.XX our EPS we tax XXXX. dollars, as in single-digits. of the of effective business would decrease to additional the the mid-to-high execute considerable range and range the distribution We $X.XX acquisition XX% to $XX income facility growth net with which underpins Net comparatives, to to X% rate EBITDA an And share. of which fiscal across expenditures seasonality million million. be diluted against of sales. year to on Geyserville continue white tax expect of in $XXX a Adjusted will balanced U.S. a of provide of investments Capital our variance prior expense disciplined as we of XXXX, $XX in million, make opportunity, contribution year range million, to year fiscal in total of XX% our QX sales, thought $X.XX share of Adjusted growth color of we some basis.Due growth $XXX topline. of in and of dynamics. the space we X% will per range brands long-term the million represents due the strategy.For on million diluted the sales the sub-channels first-half net which

QX, some of shipment with downward pressure first year the within specifically in we growth first some the year, be is with to timing half expected QX lap the of year. proportionally as the be half last prior While in will line to show

of the in volatility relative past, business, the shipment indicators health channel are we year favorability, the want our looking movements increases.I year's not single-digit decline quarters avoid given which have part challenges is of was of timing secure in forward reminder, to QX underlying common, distributors QX volume given or QX, and steep a up the last high-to-mid are to wholesale business. stocked pulled from For that timing price reiterate, we a to the from the shipment across discussed logistical increase.As as into QX before prior benefited wholesale as inventory quarter-to-quarter meaningful for of size

sales will continue first-half line cadence we as the generally and wines to strive shipment we customers. expect refinements in includes in QX offering seasonality, these in These with that the Browne is bring optimal also historic Kosta bringing of proportionality shipment timing our exceptional that customer second-half for on into trends.We movements of our terms and anticipate a second-half net to between our basis, levels. points year.For prior margin note restore year as QX to directly In some normalized to pricing QX we for to fiscal pleased full-year of our our On conclusion, XX out QX are growth macroeconomic XXXX pressure full-year industry remain and and we up relative and downward some more pressure.In growth results. gross fourth long-term outlook prudently is and potential in we XXXX, optimistic to with basis experience line algorithm, quarter with despite we our

within within share wine will it as for Sean fiscal take we and ahead.I strong a closing now outperform over to to remarks. believe position back look remain advantageous luxury segment. continue industry year we an forward And in the our We hand to I

Sean Sullivan

Jennifer. you, Thank

We the with consistent strong our are luxury of and wine pleased our very outperformance financial segment. results

the focus we and stockholders.With our to Jennifer appreciate new for issued we predict, to results the demonstrate deliver remain value the have While to with business customers. our will and the statements are the are macroeconomic year. always take the fiscal the My against of that, profitable to the your the financial and The I We Portfolio guidance committed call short-term performance, in and as afternoon resiliency Duckhorn will on strategy, confident with of our release brands earlier earlier that long-term transition. respect questions.And that challenging individually delivering impacts include to questions environment are today of of the to to share strategy growth sustainable, we for all a continue strength team and long-term CEO and over our growth, a create in the would about also this press information available strive our

Operator

today Christian Bank question-and-answer of a first [Operator from session. comes Junquera question begin with America. now will We Our Instructions]

Christian Junquera

Pete. on Christian for have You

pleasure our was Alex, want with the him and Before best. I say we to a question, just wish ask it working we

needs what to... First,

Jennifer Fall Jung

We do too.

Christian Junquera

Sorry, go ahead.

Sean Sullivan

do we said I too.

Christian Junquera

question, a guys then EBITDA first for I transpire outlook? needs So quick of end sales your and to follow-up. hit What have and you high the to

Jennifer Fall Jung

Jen. Nice to meet is This you.

As from in term really as continuing as customers into our we our FY in gaining talked about comes a premise, both accounts in really market attract our of we off well our terms performance to portfolio. little longer goal growth in on XXXX, and part bit of that see share new

guidance. It a upper we will strategy. definitely been that our with our end continue we see working. that And of So path for has for

macroeconomic keeping our but just mind are that out forth. are there We good put that guidance we've topline feel in industry about really we and there, headwinds

Christian Junquera

Okay. And Kosta the end this Perfect. you I seasonal the just cadence revenue your follow-up. touched then because towards of of Browne shipments. but one of timing the believe remarks, on 'XX for changed, fiscal of

Now, half first that right? closer should it second the to assume to correctly? seasonality fair thinking that fiscal fiscal was what is and for sales in 'XX, about it for we Are 'XX look

Jennifer Fall Jung

the I driving how But customers. we say growth. starting, is Yes, we keeping and great do mind directionally. back offering half think performed lot you on half moving a about which QX, you proportionately We the of will it feel Kosta should it basis, think same cadence on in optimal in we Browne be more really our where a obviously see feel a into just were for that basis, QX

about have just that you the looking quarters. at think as to you're So

Sean Sullivan

we Christian, was minutes an a well. And, deck ago just as investor filed have that few

Browne to that the Kosta helpful that, at you point will finer with take that on offering. respect look schematic really a got it's a If you put a for

Christian Junquera

I'll pass along. it Perfect.

Operator

next comes question Barclays. Lieberman from Our with Lauren

Lauren Lieberman

off-premise you're in just of an or more having your on to that's consumer as of mentioned on that versus how the have within want outperforming. in of lists at you'd or But something of the feel if building about just availability point, you sort seeing in priced regard? assumptions know wine And the that I moderately off-premise curious terms First, also your trade-down, guidance installation. underpin available touch more that 'XX on-premise key what accounts on-premise, trends. what then was to offerings lower some this is opportunity

Jennifer Fall Jung

from was Great on had Jen. performance, speech our good about; year. quarter is as Both of we the which you. we in saw This and meet growth this really the off-premise, how year, growth growth. the a felt Yes, solid mentioned did in on-premise lot come to off-premise and we account

a seeing in hurdle, FY So results comps favorable little that channel.What are tougher. we on you 'XX, bit bigger on-premise is each there's based so saw a just in the were

feel reopening were performance, it we with a in XXXX of although and we great just grow So did on-premise. the comping

both both from on- we look team trajectory as new grow of continue is is the sales and focused, and our that's well leadership as move into forward, some that label As off-premise off-premise And of will through account and rest more there that our growth part perspective, are to of an team. mixes on-premise to and where we expect will as to the takes the wines year. continue category, knowing get we a our puts with

Sean Sullivan

the XX, that's take XX,XXX over in respect continued increases to with performance, portfolio. the some XX,XXX of key as focused our XXXX, which of growth, points our and demand that in years category And I X is, to three to the note stability, also price I that next to of on to X% mind. I but relative think, we of relative June so out but projection the be of first would strong experienced I underlying on, as and kept across going we than then wholesale in think, trade-down, to its of also take growth, the point the frankly, softening more a comprised off-premise share. a CAGR account should growth, primarily overall a vectors has luxury from out wholesale wine quite that for which element we're X% that, be would performance at The

Lauren Lieberman

wanted goal also I then know progress keep about ask promotions. has Great. of tempering your making to been Okay. kind promotions. I to And just on

forward kind of you of kind fiscal 'XX depth that's color on is work frequency how much done conversation? left been over any going and and could that kind the frame Just of room promotional

Jennifer Fall Jung

our gross very made half have margin, you it's back do saw year. the expect, promotions within and saw, in FY we limited as substantial improvement, a over Yes, of We 'XX. improvements significant the we as

call, we to expect seeing. we're normalized For basis we promotional noted pressures But about is our and or think that other will XXXX, to that we we be strategy bringing and it our back the margin continue possible the all we will of to to to pressures not really monitor get strategic cadence, and to XXXX, the levels what that do do a just the very of consumer are sure as higher about thinking industry in dollars allocation make go more bottom-line.

Operator

Our Andrew next Strelzik BMO. question with from comes

Andrew Strelzik

one The and case, comments the turning why that understand, goal the do first the that. your from curious corner. is how me kind to on about industry relevant gain a category. I mean, of is obviously, changed? completely wine your is that But, corner just share objective there that's you turning I comment? Is frame that sustainable or is to I'm think this the something the to

Sean Sullivan

afternoon by way. you, Good Sure. the to

occasions, itself think define think probably we which the as it's think is we turning is starting have thing luxury other is $XX wine data, look so of and is points we that us viewpoint and corner a on talk industry on I which less I data function probably you which of and we data, specifically many see I heard at is mix that impactful above. category, The Circana data about look scanner that industry total a at our first a our broader luxury, factors. for looking a-third focuses business, that the than as the about and luxury at look number and the a a of reacceleration.I for think, see, the to of specifically us have show the at

the to related is macroeconomic it environment. of Some

choice some want the Some may who I'll but of little drink related little it of I to less, say, a a better. consumers, drink younger is of to

year or And might decline, it some with acceleration. the will the if we a think some together, seeing growth be wobbles, the by just an fall some deceleration season look very as the we this outperform to we that ability like slower overall something and we and have and force our but talked There and about prowess pattern that been other call buoyed we share at peers. table. we but to calls and time into it that and is our line. of We're of all And also the we've established take we're growth, be of now of upcoming think that faster I overall work a I like sales cognizant our holidays.But the on is on straight whole has a feel what the be through long-term trends, I hallmark we're consistent going sort particularly of industry organizational think won't bring the the

So in we I addition believe, turned hope has our that industry to corner. what will outperformance, really continue the an is

Andrew Strelzik

role. But very you about And kind second then is clear. color a Very takes Okay. things, can types that any of levels be on understanding an of normalizing just the puts those the across of talk is cost pricing outlook question my just playing inflation, key some the the and gross margin of that you buckets, provide helpful. would

Jennifer Fall Jung

Yes. you, Andrew. Nice to meet

a and that into particularly back-half. we in in to spend XXXX. And we significant did what coming you're we as in of did XXXX, because our we note did of look really note did underneath pressure in some anticipate seeing lot the covers the margin, trade kind the see that gross is we favorability So trade forward spend, what

at although adjusted So bottom then And perspective. at out And will a nets our all EBITDA, as takes our the more be puts than and we is be wholesale wholesale in-state out-of-state look network, to also, SG&A, margins there grow once will channel forward, you some in from layer this normalized. continue California distribution which of our we kind has channel the slightly kind of as neutralized. But, that network. lower

in it then It's growth But little highly penetrated market. our than bit opportunity rate growth So little space strategy. support pressure as white our the out-of-state see rates supports go in a growth a out-of-state of margins. does California those more you'll on long-term higher, that just and

Operator

comes question questions. difficulty. having was JPMorgan. I apologize. Andrea for next your technical again Our from Thank I you [Operator a Teixeira with Instructions]

Andrea Teixeira

Alex a wanted just accessible to this to so his welcome Ryan, you, as contribution Jennifer. investors. also to the industry you, and I also California impressive for company thank to and And wine first whole,

the course, working takes, just to forward I depletion with puts wholesale question my is, know Looking X% the the you.And X% Jennifer, that discussed how you're of is in and retail? pricing would you to growing you rate what understand assuming from words, that to was and just course, it's carryover assuming in in that underlying X% mean, closed, think, your benefit you But piece that conservative, midpoint, more effect still approximately I the it's slightly X% same below distribution. topline growth algorithm. just below together. more be very you by to growth. X% the implies gaining about but of at a token, And I'm I but I'm year strong it other tend I to fourth to slightly only. volume a it had trying had into to take quarter, or, obviously, it's guide, guide a you that,

can elaborate if that. more on wondering just So you

Jennifer Fall Jung

to nice you well. meet as And

the take takes a were organization we took last effective, did it have in to quarter. lot in So September I effect. prior XXXX, price think, for the while pricing fiscal early year increases for buy-in a sometimes that those X, to the but of the And the prices

that. about sorry So

we're volume, as kind quarter. increases really So out see in those growth the of to be primarily driven lapping price we do those our forward, of, already look because within have XXXX we

Andrea Teixeira

That's helpful.

lot kind Kroger like you're can, gain distribution a talk outside gain of know you or to different and you're much illustrate looking how more TDPs a gaining I that, because with of about retailers. lot California to If

obviously, cadence. give a tough first not the that And bump, then can would a bump, comparison. the I little you say understandably, quarter opposite of has if bit like So us

help you think So us if can shelf of to a kind how about more resets of like and in into the kind year. cadence think

Sean Sullivan

three those the increase wholesale the Andrea, take turning.So you the XX,XXX for number on that right? if sold, of I vectors, focus I SKUs per accounts and last first then the velocity are will of vectors, an pass over three of then would part. XX,XXX SKUs and saw to We of of we Sean. the second part the accounts account, number the have it's focusing recall, from those Jennifer sold. first to first, channel the question in year

forward to puts of over X% at of We are accounts. growth, show about looking, CAGR we our next XX,XXX X which years, project the around a X% as you goals

the we that. wines of we're And then our offer think Once it's elements a large foundationally retailer portfolio, of XX% So the of of about to distributor. penetration as you to luxury because clear the with which ] of a projections, other then our indicia in sales there.The accounts. path would appropriate the very the even fact strength. project upside the there [ its account, to wines, and that like we with good I a leads that's our is And space, to support growth the of a accounts And in other obviously level, faster for year-to-year that, brand number an have on easier that of laid of something those to growth we team in our then the is wines, think think of consumer runway in support demand I is that's them wines. be would pleasing of velocity story, about these we elements course, is for the a white the that and XXXX, believe, of nice one have for

how at Jennifer, wholesale look of out that. we're year we model it.Within looking at the the longer sort the on of the as the whole, 'XX, can from components as you're maybe growth fiscal So kind take you term, of just and building in that that's

Jennifer Fall Jung

earlier, 'XX fiscal volume-driven. I is As really within noted

is Our growth. is which supported obviously, and growth, by by depletion fueled volume the account growth the

of account outside on just as growth focused well out-of-states, as perspective. volume from a really So

Andrea Teixeira

just but issue or quarter. fine first super-helpful, is volume you go first buildup inventory This just a point It's as just quarter? like into tough the the on comparisons really the in

Jennifer Fall Jung

well in They get on as they could our to within logistical believe, channel, increases, as earlier which It's tough by driven we the inventory buying QX FY the product. to We we distributors get into was strong our a their first actually making the absolutely price challenges, 'XX few and our quarter. wholesale really our as a very comparisons increases were prior happened go in sure had suppliers.

we as copying forward QX, So to those. FY we're just look 'XX

the in guide and we on the about growth quarter. there, see the are And in kind out the with but in talked we super-healthy call. see inventory levels you'll our that QX of first-half, do it So hopefully, you'll the out feel Overall, marketplace. second the to nothing has inventory our levels

Operator

time. There for you, questions. questions are your Thank at no waiting this guys,

to any conference for closing pass I'll remarks. back the So Sean over

Sean Sullivan

look we to thank to to performance again December you us fourth our to then, and our fiscal want care. We our today joining quarter take with year when for again Until you. We quarter you results. XXXX. forward first review speaking in for guidance present report Thank

Operator

your call. That today's you conference will Thank for all participation. conclude

your disconnect You now line. may

The Duckhorn Portfolio, Inc. (NAPA) 27 Sep 232023 Q4 Earnings call transcript