Hershey quarterly sales misses estimates on weakening demand

(Reuters) -Hershey fell short of market expectations for quarterly sales on Thursday, in a sign price hikes were finally starting to leave a mark on demand for the Reese’s peanut-butter cup maker’s chocolates and candy.

Multiple rounds of price hikes implemented by packaged food makers over the last year to counter soaring cost inflation has pinched household budgets, particularly for lower-income consumers, forcing many to switch to cheaper store-owned labels from national brands to lessen the burden on their wallets.

The company’s net sales rose to $2.49 billion in the second quarter ended July 2 from $2.37 billion a year earlier, while analysts on average expected $2.50 billion, according to Refinitiv data.

Hershey, however, reaffirmed its previous forecast of approximately 8% net sales growth in 2023.

Shares of the 129-year-old company fell 1% before the bell.

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