SALEM, Ore., Aug. 12, 2026 /PRNewswire/ -- Willamette Valley Vineyards, Inc. (NASDAQ: WVVI) (the "Company"), a leading Oregon producer of Pinot Noir, generated a loss per common share after preferred dividends of $0.40 and $0.09 for the three months ended June 30, 2026 and 2025 respectively, an increase of $0.31, for the three month period ended June 30, 2026 over the same three month period in the prior year.
Sales revenue for the three months ended June 30, 2026 and 2025 were $10,036,275 and $10,195,763, respectively, a decrease of $159,488, or 1.6%, in the current year period over the prior year period. This decrease was caused by a decrease in direct sales of $262,493, partly offset by an increase in sales through distributors of $103,005 in the current year three-month period over the prior year period. The decrease in revenue from direct sales was primarily related to lower outpost sales.
Gross profit for the three months ended June 30, 2026 and 2025 was $5,773,725 and $6,216,618, respectively, a decrease of $442,893, or 7.1%, in the second quarter of 2026 over the same quarter in the prior year.
Selling, general and administrative expenses for the three months ended June 30, 2026 and 2025 was $7,127,694 and $5,818,454 respectively, an increase of $1,309,240, or 22.5%, in the current quarter over the same quarter in the prior year. This increase was primarily the result of an increase in the allowance for credit losses associated with the bankruptcy filing of Republic National Distributing Company, a distributor of the Company.
Net income (loss) for the three months ended June 30, 2026 and 2025 was ($1,389,876) and $92,795, respectively, a decrease of $1,482,671, in the second quarter of 2026 over the same quarter in the prior year.
Jim Bernau, Founder and President of the Company "I believe this second quarter reflects the negative impact of our largest distributor's bankruptcy filing and the sizable amount our winery is owed by them. We are taking steps to reduce the adverse impact on our cash flow as well as training new distributors to be successful with our brands. We are pleased that the reduction in the aggregate number of customer visitations at our retail locations during the second quarter was nearly offset by increased spending on a per customer basis during this period."
For a complete discussion of the Company's financial condition and operating results for the second quarter 2026, see our Form 10-Q for the three months ended June 30, 2026, as filed with the United States Securities and Exchange Commission on EDGAR.
Willamette Valley Vineyards, Inc. is headquartered at its Estate Vineyard near Salem, Oregon. The Company's common stock is traded on NASDAQ (WVVI).
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, referred to as the "Securities Act", and Section 21E of the Securities Exchange Act of 1934, as amended, referred to as the "Exchange Act". These forward-looking statements involve risks and uncertainties that are based on current expectations, estimates and projections about the Company's business, and beliefs and assumptions made by management. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates", "predicts," "potential," "should," or "will" or the negative thereof and variations of such words and similar expressions are intended to identify such forward-looking statements. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including, but not limited to: availability of financing for growth, availability of adequate supply of high quality grapes, successful performance of internal operations, impact of competition, changes in wine broker or distributor relations or performance, impact of possible adverse weather conditions, impact of reduction in grape quality or supply due to disease or smoke from forest fires, changes in consumer spending, the reduction in consumer demand for premium wines, and the revenues or costs for any of our tasting rooms and restaurants exceeding or not meeting our expectations. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic economic conditions.
Many of these risks as well as other risks that may have a material adverse impact on our operations and business, are identified in Item 1A "Risk Factors" in our Annual Report on Form 10-K.
The following is the Company's Statement of Operations for the three and six months ended June, 30, 2026 compared to the three and six months ended June 30, 2025:
Three months ended Six months ended
June 30, June 30,
2026 2025 2026 2025
SALES, NET $10,036,275 $10,195,763 $18,292,428 $17,737,346
COST OF SALES 4,262,550 3,979,145 7,489,639 6,761,620
GROSS PROFIT 5,773,725 6,216,618 10,802,789 10,975,726
OPERATING EXPENSES
Sales and marketing 4,423,814 4,193,635 8,507,658 8,161,345
General and administrative 2,703,880 1,624,819 4,326,894 3,286,195
Total operating expenses 7,127,694 5,818,454 12,834,552 11,447,540
INCOME (LOSS) FROM OPERATIONS (1,353,969) 398,164 (2,031,763) (471,814)
OTHER INCOME (EXPENSE)
Interest expense, net (267,994) (270,145) (555,307) (568,366)
Other income, net 2,550 2,550 209,170 145,026
INCOME (LOSS) BEFORE INCOME TAXES (1,619,413) 130,569 (2,377,900) (895,154)
INCOME TAX (EXPENSE) BENEFIT 229,537 (37,774) 422,952 258,968
NET INCOME (LOSS) (1,389,876) 92,795 (1,954,948) (636,186)
Accrued preferred stock dividends (606,071) (563,176) (1,212,142) (1,126,353)
LOSS APPLICABLE TO COMMON SHAREHOLDERS $(1,995,947) $(470,381) $(3,167,090) $(1,762,539)
Loss per common share after preferred dividends,
basic and diluted $(0.40) $(0.09) $(0.64) $(0.36)
Weighted-average number of
common shares outstanding, basic and
diluted 4,979,529 4,964,529 4,979,529 4,964,529
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SOURCE Willamette Valley Vineyards
