Oct 29 (Reuters) - Hershey on Thursday warned that increased pressure on shoppers due to higher gas prices, inflation and interest rates could impact how much consumers spend on candy this Halloween.
The company's shares fell 4% in premarket trading after it narrowed its annual organic net sales growth target to about 3%, citing weakness in channels such as convenience stores.
• Hershey's US candy, gum and mint category declined nearly 5% from a year earlier in September, with weakness continuing into October, Hershey said in prepared remarks after its third-quarter results
• "Halloween participation is expected to be in line with 2025, though financial pressures could shape final purchase decisions," CEO Kirk Tanner said
• Higher freight costs, inflation and consumer pressures have become more challenging and could "restrain" earnings growth in 2027, Hershey warned
• The company's third-quarter net sales of $3.28 billion beat estimates, according to data compiled by LSEG
• Hershey also raised its annual earnings per share growth target, citing tariff refunds and deflation in cocoa prices
• The company is betting on fresh offerings like Hershey Crème Filled Bars and Reese's Oreos to boost demand, alongside more marketing efforts
(Reporting by Juveria Tabassum in Bengaluru; Editing by Jonathan Ananda)