The Hershey Company (NYSE:HSY) delivered better-than-expected second-quarter results on Wednesday, though its stock slipped 1.2% in premarket trading after the chocolate maker revised its full-year earnings forecast downward due to mounting tariff-related costs.
Adjusted earnings for the quarter came in at $1.21 per share, beating analyst projections of $0.99. Revenue reached $2.61 billion, also above the consensus estimate of $2.52 billion and marking a 26% increase compared to the same period last year. The boost was attributed in part to favorable comparisons with the prior year, when the company reduced inventory levels following an ERP system upgrade, as well as the timing of Easter sales.
“Investments in our brands and impactful innovation, coupled with effective execution, are driving solid sales and share gains across both our U.S. confection and salty snacking business,” said Michele Buck, President and CEO of Hershey.
Despite the strong quarter, Hershey lowered its full-year profit forecast. The company now expects adjusted earnings per share to drop by 36% to 38%, slightly worse than its previous guidance of a mid-30% percentage decline. Management cited anticipated tariff costs—now expected to total between $170 million and $180 million—as the main reason for the downgrade.
Sales in the North America Confectionery segment, Hershey’s biggest revenue generator, rose 32% to $2.09 billion, driven by roughly 25 percentage points of organic volume growth. U.S. retail takeaway for candy, mint, and gum climbed 21.8% during the 12-week period ending June 29, while market share improved by 90 basis points.
The North America Salty Snacks division—which includes brands such as SkinnyPop and Dot’s Pretzels—posted sales of $315.5 million, up 8.8%. International sales also edged higher, increasing 4.4% to $213.7 million.
While maintaining its full-year forecast for at least 2% growth in net sales, Hershey said it is actively managing higher cocoa prices through “strategic pricing, enhanced productivity, and technology enabled efficiency.”
The Hershey Company stock price
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