Crimson Wine Group Reports 1% Increase in Net Sales to $72.985 Million for Fiscal Year 2024

Crimson Wine Group, Ltd. reported a modest increase in its financial performance for the fiscal year ending December 31, 2024, with total net sales reaching $72.985 million, up 1% from $72.402 million in 2023. The company's wholesale segment generated $41.079 million, a 1% increase, primarily driven by higher export sales. Direct-to-consumer sales also saw a 2% rise to $27.968 million, attributed to increased Ecommerce and tasting room sales, although wine club sales declined due to lower membership numbers. Other sales, which include bulk wine and custom winemaking services, decreased by 4% to $3.938 million.

The company's gross profit improved by 4% to $35.053 million, with wholesale gross profit increasing by 8% to $16.248 million, reflecting a higher sales mix of premium wines and lower costs. However, direct-to-consumer gross profit remained stable at $18.108 million, with a slight decrease in gross margin percentage. Operating expenses rose by 8% to $34.180 million, driven by increased sales and marketing costs and higher general and administrative expenses, which included rising sales taxes and compensation costs.

Crimson Wine Group continues to focus on strategic developments, including enhancing its direct-to-consumer sales channels and optimizing its operational model. The company has invested in its core brands and expanded its tasting room experiences, which have contributed to increased customer engagement. As of December 31, 2024, the company employed 226 individuals, including full-time, part-time, and seasonal staff, reflecting its commitment to fostering a performance-based culture.

Looking ahead, Crimson Wine Group anticipates steady profit margins, contingent on effective management of sales costs and operating expenses amid inflationary pressures. The company plans to continue its focus on direct sales to consumers, which yield higher margins, while also monitoring market conditions and consumer demand. The company remains committed to sustainability initiatives and enhancing its vineyard holdings, with approximately 720 plantable acres under its control across key wine regions in California, Oregon, and Washington.