Hershey Warns Consumer Strain May Hit Halloween Candy Sales

what happened

Hershey said on Thursday that higher gas prices, inflation and interest rates could weigh on how much shoppers spend on candy ahead of Halloween, Reuters reported. The company's shares slipped about 1% after cutting its yearly target for organic net sales growth to roughly 3%, pointing to softer demand at convenience stores, where customers were budgeting for fuel costs. Sales of candy, gum and mints at US convenience stores fell nearly 5% in September from a year earlier, and the decline carried into October, according to the company.

Executives said they were counting on last-minute buyers of bulk packs before the holiday on Saturday, October 31. CEO Kirk Tanner said: "Now we need consumers to show up, we need them." Third-quarter net sales reached $3.28 billion, slightly above the $3.25 billion LSEG estimate. Organic volume dropped about 7% while net price rose 11%, and Hershey does not plan broad price cuts. The company raised its annual earnings per share growth target, citing tariff refunds and cheaper cocoa.

why it matters

For markets, Hershey's update shows shoppers trading volume for price and cutting impulse purchases. Packaged food makers may face similar pressure, since the company said freight costs and inflation could restrain earnings growth in 2027. Cheaper cocoa, meanwhile, supports margins for chocolate producers.

market impact

Hershey shares: a lower sales outlook and weak convenience-store demand pressure the stock

• ▼Hershey shares pressure down — a lower sales growth outlook weighs on investor sentiment

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