Duckhorn Expects Wholesale Improvement Following Distrib Realignment

Dear Client: The Duckhorn Portfolio reported a net sales increase of 1.4% for the third quarter ended April 30, driven by a shift in timing of the Kosta Browne Appellation Series release. Volumes were down 4.6% for the quarter. The wholesale to distributor and California wholesale direct-to-trade channels were negatively impacted by the weaker demand environment, with net sales down 11% and -7.3%, respectively, in Q3. Meanwhile, the direct-to-consumer channel grew 71.4% in the quarter, "reflecting a shift of our largest Kosta