Hershey's Post-Halloween Report Card: Salty Snacks Are Booming, and Reese's Had a Tougher Year Than Last Year's Reese's

Hershey posted $3.28 billion in net sales for the third quarter, up 3% from a year earlier, in a report timed for right after the biggest candy weekend of the year. Reported net income came in at $580.8 million, or $2.88 a share, while adjusted earnings per share landed at $2.64. The company also nudged its full-year outlook up slightly, now expecting adjusted earnings per share growth of 36% to 38.5%, helped along by tariff refunds it has booked this year.

The two segments told very different stories. North America Confectionery, the core chocolate and candy business that includes Reese's and Kit Kat, grew sales only 1.6%, as price increases drew pushback and the brand lost share against a tough comparison: last year's big Reese's launch. North America Salty Snacks, on the other hand, jumped 22.3%, with the LesserEvil brand Hershey acquired doing about 20 points of that lifting. International sales fell 7.5% and the segment posted an outright loss, driven by volume declines and a deliberate trimming of the portfolio.

CEO Kirk Tanner put it plainly: “Our second-half demand creation initiatives are gaining momentum, even as consumers grow more cautious.” Translation: people are still buying candy, they are just pickier about what kind, and increasingly willing to reach for a chip bag instead.

Source: The Hershey Company

Kyle Duford, Founder & Editor, BRNDWIRE. More from Kyle →