Hershey Lowers Sales Target Amid Inflationary Pressures

The Hershey Company lowered its annual organic net sales growth target to approximately 3% on Thursday, citing the impact of high inflation, interest rates, and rising gas prices. The company linked these economic pressures to the U.S. war in Iran, noting that strained consumer budgets are weighing on Halloween spending. This guidance follows a nearly 5% decline in September sales at U.S. convenience stores.

For the third quarter, the company reported net sales of $3.28 billion but saw a 7% decline in organic volume. To address affordability without implementing broad price cuts, the company is utilizing promotions, varied pack sizes, and new product launches, such as Reese’s Oreos. Despite the sales outlook, the company raised its annual earnings per share growth target, benefiting from tariff refunds and deflation in cocoa prices.

CEO Kirk Tanner emphasized that the final days before October 31 are critical for sales, stating, "Now we need consumers to show up, we need them." While the National Retail Federation estimates total Halloween spending at approximately $13.5 billion, Tanner noted that financial pressures could shape final purchase decisions.