The Duckhorn Portfolio, Inc. (NYSE:NAPA) Q2 2024 Earnings Call Transcript

Peter Galbo: Hi, guys. Good afternoon. Thanks for taking the question. I guess maybe just one, can you expand or unpack a little bit more on the restart on the, I think you call it the Wine by the Class program, just how far into that are you now, kind of the early learnings you have? And I think you did mention it was going to be a bit of a margin drag. Just kind of help us understand that a little bit more. Thanks very much.

Jennifer Fall Jung: Great. Thanks for the question, Peter. Yes. So we had some inventory shortages, and that’s why we had to pull back on the wine-by-the-glass program, specifically within the Duckhorn Chardonnay and a few others. And we’ve talked a little bit about getting back into stock on those in the back half. So that’s really what caused us to kind of lose some of that momentum. Starting it back up, we really do feel, even though it is a bit of a drain on margin, it’s a great way to expose people to all of our brands and get us some brand awareness. So it’s part of the program, and we feel it’s worth that investment because it pays off in dividends as we continue to get more people into our portfolio of brands.

Peter Galbo: Thanks.

Operator: We have no additional questions at this time, so I’ll pass the call back to the management team for any closing remarks.

Deirdre Mahlan: Okay. Thanks again, everyone, for joining us today for our second quarter performance and our guidance for fiscal year ’24. I’ll look forward to speaking with you again in June when we report our third quarter results. Cheers. Thanks, everyone.

Operator: That concludes today’s conference call. Thank you all for your participation. You may now disconnect your line.