Hershey's Stock Falls 1.43% as Strong Q2 Earnings Clash with Cost Pressures and 352nd Volume Rank

On July 31, 2025, The Hershey Company (HSY) traded with a daily volume of $0.41 billion, a 29.46% decline from the previous day, ranking 352nd in market activity. The stock closed down 1.43%, reflecting mixed performance amid earnings and strategic updates.

Hershey reported Q2 2025 earnings and sales that exceeded expectations, driven by strong Easter and pre-Halloween demand. Revenue rose 26% year-over-year to $2.61 billion, while adjusted EPS reached $1.21, surpassing forecasts. However, the company revised its full-year profit outlook downward due to rising commodity costs, increased marketing expenses, and projected tariff impacts, which could add $170–$180 million in annual costs. Leadership transition, including Kirk Tanner’s CEO appointment, and product innovations like REESE’S and OREO collaborations were highlighted as long-term growth drivers.

Cost pressures, particularly from tariffs on cocoa imports and higher manufacturing expenses, narrowed gross margins to 38.1%, down 510 basis points year-over-year. Strategic pricing adjustments and supply chain optimizations partially offset these challenges. The North America Confectionery segment led growth, with 32% sales increases, while the Salty Snacks division saw 8.8% revenue gains. However, the International segment’s profit margin contracted to 9.3%, reflecting currency and operational headwinds.

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