Duckhorn Portfolio, a winemaker based in St. Helena, California, experienced a decline in profit during its fiscal first quarter due to a decrease in unit sales. The company reported a profit of $15.5 million, or 13 cents a share, for the quarter ended October 31, compared to $19.8 million, or 17 cents a share, in the same period last year. Analysts surveyed by FactSet had predicted earnings of 15 cents per share.
After excluding certain one-time items, adjusted earnings per share came to 15 cents, falling short of the 16 cents forecasted by analysts, according to FactSet. Additionally, revenue dropped by 5.2% to $102.5 million, missing the expected $104.1 million.
Duckhorn Portfolio attributed the decrease in sales to lower shipment volumes and an unfavorable price/mix. Volumes fell by 3.4% in the quarter.
Interim Chief Executive Deirdre Mahlan stated that the company was able to improve its margins during the quarter through reduced discounting and a focus on cost management. She also noted that the company was facing tough comparisons to a particularly strong prior year quarter.
