The Duckhorn Portfolio, Inc. (NYSE:NAPA) Q1 2023 Earnings Call Transcript

Lori Beaudoin: Oh, sure. Yeah. So as we’ve been talking for the past two years our direct to trade in California is our second highest margin business, right? Direct to consumer is the highest margin business we have then within California or direct to trade is the second highest margin and then the direct to distributor coming in third, but then also remember as we talk about, we have different operating expenses across those three channels as well with the highest operating expense being in our DTC business. The second being in California because we have a lot — a lot more people out selling our wines than with the other 49 states. So when it comes right down to contribution, they’re quite similar in terms of contribution to the bottom line between those channels.

Operator: Thank you for your question. There are currently no further questions registered. There are no additional questions waiting at this time. So I will pass the conference over to the management team for any closing remarks.

Alex Ryan: All right, I want to thank you again for joining us today to review our first quarter performance and our updated outlook for the remainder of the fiscal year. I look forward to speaking with you again in early March when we report our second quarter 2023 results and until then on behalf of the entire Duckhorn portfolio, I’d like to wish you a safe and happy holiday season. Take care and talk to you soon.

Operator: That concludes the conference call. Thank you for your participation. You may now disconnect your lines.