Hershey lowers sales outlook as household costs weigh on Halloween

Hershey lowered its annual organic net sales growth target to about 3% as pressure on household budgets threatened Halloween candy purchases, according to The Korea Times. The company plans to lean on promotions and varied pack sizes rather than broad price cuts.

The warning points to a gap between expected Halloween participation and what shoppers may ultimately buy. Even with a national survey projecting higher holiday spending, Hershey reported weaker convenience-store sales and lower quarterly organic volume.

Hershey CEO Kirk Tanner said Halloween participation was expected to match 2025 levels, but financial strain could affect shoppers' final decisions, The Korea Times reported. Executives said last-minute bulk candy purchases would be important to demand.

A National Retail Federation survey projected Halloween spending of about $13.5 billion, up from $13.1 billion the previous year, according to the report. Hershey cited inflation, high interest rates and higher gas prices among the pressures facing consumers.

Hershey said September sales of candy, gum and mints at U.S. convenience stores dropped nearly 5% from a year earlier, with weakness persisting into October. Quarterly net price increased 11%, while organic volume fell about 7%.

The company said it would use promotions, different pack sizes, new products and more marketing to support demand instead of cutting prices across the board. Third-quarter net sales reached $3.28 billion, above estimates of $3.25 billion, according to LSEG data cited by The Korea Times.

Hershey raised its annual earnings per share growth target, citing tariff refunds and falling cocoa prices. But the company warned that freight costs, inflation and pressure on consumers could limit earnings growth in 2027, according to The Korea Times.