Hershey warns that consumers’ financial strain may drag down Halloween spending

Reuters, October 29 - Hershey (HSY.N) warned on Thursday that rising gasoline prices, inflation, and higher interest rates are increasing financial pressure on consumers, which may impact the amount consumers spend on candy during this year’s Halloween.

The company lowered its annual organic net sales growth target to about 3%, citing weak performance of sales channels such as convenience stores, causing its share price to fall 4% in pre-market trading.

• Hershey said in a written statement following the release of its third-quarter earnings report that the sales of its U.S. candy, gum, and mint categories in September compared to the same period last year declined by nearly 5%, and this weak trend continued into October.

• “Halloween participation is expected to be on par with 2025, but financial pressure may impact final purchase decisions,” CEO Kirk Tanner said.

• Hershey warned that rising freight costs, inflation, and consumer pressure pose greater challenges and may “restrain” profit growth by 2027.

• According to data compiled by London Stock Exchange Group (LSEG), the company’s third-quarter net sales were $3.28 billion, beating market expectations.

• Hershey also raised its annual earnings per share growth target, citing tariff rebates and cocoa price deflation.

• The company is betting on new products such as “Hershey Filled Chocolate Bars” and “Reese’s Oreo” to boost demand while ramping up marketing efforts.

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