Crimson Wine Group, Ltd. reported a decline in financial performance for the first quarter of 2025, with net sales totaling $14.46 million, down 9% from $15.93 million in the same period last year. The company experienced a decrease in both wholesale and direct-to-consumer sales, with wholesale net sales falling by 14% to $7.90 million, primarily due to reduced shipments to distributors and challenges in the export market, particularly with Canada. Direct-to-consumer sales saw a slight decrease of 1%, totaling $5.98 million, attributed to a drop in wine club memberships, although Ecommerce sales showed improvement.
The company's gross profit also declined, dropping to $6.65 million from $7.70 million, reflecting a gross margin percentage decrease from 48% to 46%. The decline in gross profit was influenced by higher inventory write-downs and a decrease in overall shipments, although the wholesale gross margin improved due to sales of lower-cost vintages. Operating expenses decreased by 5% to $8.19 million, driven by reduced sales and marketing costs, while general and administrative expenses increased slightly.
Crimson Wine Group's balance sheet as of March 31, 2025, showed total assets of $211.45 million, down from $218.16 million at the end of 2024. Current liabilities decreased significantly to $8.56 million from $13.15 million, primarily due to a reduction in accounts payable and accrued liabilities. The company reported a net loss of $0.94 million for the quarter, compared to a loss of $0.63 million in the prior year, resulting in a loss per share of $0.05.
In terms of strategic developments, the company has suspended its share repurchase program effective March 21, 2025, after repurchasing 58,252 shares at an average price of $5.92 per share during the quarter. The company continues to focus on enhancing its direct-to-consumer sales channels, which are more profitable than wholesale sales. Looking ahead, Crimson Wine Group anticipates ongoing challenges in the market, particularly related to inventory management and export tariffs, but remains committed to improving its operational efficiency and profitability.
About Crimson Wine Group, Ltd
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