Crimson Wine Group Reports Decline in Sales and Increased Net Loss for Q2 2025

Crimson Wine Group, Ltd. reported a decline in financial performance for the second quarter of 2025, with net sales totaling $17.0 million, a decrease of 1% from $17.2 million in the same period last year. For the first half of 2025, total net sales were $31.5 million, down 5% from $33.2 million in the first half of 2024. The company experienced a net loss of $131,000 for the quarter, compared to a net income of $128,000 in the prior year, and a net loss of $1.1 million for the six months ended June 30, 2025, compared to a loss of $505,000 in the same period of 2024.

The decrease in sales was attributed to a 4% decline in wholesale net sales, primarily due to reduced export sales, particularly to Canada, where shipments were suspended due to tariffs. Direct-to-consumer sales also fell by 5%, driven by lower wine club memberships and tasting room visitations. Other sales, which include bulk wine and custom winemaking services, decreased by 26%, reflecting lower tasting fees and bulk wine sales. The company noted that increased discounts on select labels contributed to a 7% decline in wholesale gross profit, while overall gross profit decreased by 12% to $7.8 million.

Operationally, Crimson Wine Group's total current assets decreased to $94.2 million as of June 30, 2025, from $98.0 million at the end of 2024. The company reported a reduction in accounts payable and accrued liabilities, which fell to $7.9 million from $11.6 million, indicating improved cash management. The company’s inventory also saw a slight decrease, totaling $61.5 million, with a notable increase in inventory write-downs due to market conditions, amounting to $1.3 million for the first half of 2025.

In terms of strategic developments, Crimson Wine Group suspended its share repurchase program in March 2025 after repurchasing 58,252 shares at an average price of $5.92 per share during the first half of the year. The company continues to focus on enhancing its direct-to-consumer sales channels, which are more profitable than wholesale sales. Looking ahead, the company anticipates that managing cost of sales and operating expenses will be crucial for maintaining profit margins amid ongoing inflationary pressures and market volatility. The company remains committed to its long-term growth strategy, despite the challenges posed by current market conditions and trade uncertainties.