Chocolate Giant Hershey's Announces Rough Tariffs News
Beloved candy maker Hershey's is set to take a hit as a result of anticipated tariffs.
According to a report from the Wall Street Journal, Hershey's posted falling earnings in the first quarter of 2025, which ended March 31. The company logged a profit of $224.2 million, or $1.10 a share, compared to $797.5 million, or $3.89 a share, in the opening quarter of 2024.
Revenue also fell 14% to $2.81 billion, and thing aren't expected to improve. The confectionary giant reportedly anticipates tariff costs between $15-20 million in the second quarter.
On Thursday, Hershey Co. said in a conference call with Wall Street analysts that it is doing everything it can to work with the Trump administration to get cocoa exempted from the tariffs, since it can not be grown domestically.
The company is estimating a potential $100 million in costs in the third and fourth quarters if they can't work things out.
Image via Hershey's
“We’re going to use, aside from the lobbying and the influencing and so forth, really, every lever in the toolbox for whatever amount of tariffs remain as we go forward in the back half of the year,” Chief Executive Michele Buck said, via Market Watch.
According to Yahoo Finance, Hershey Co. is still expecting sales to increase at least 2% and adjusted earnings to drop about 35%.
"The impact of US levies was only taken into account for the second quarter, which runs through June," Yahoo Finance wrote.
President Donald Trump's 90-day pause on tariffs is set to expire in July.
You can find Hershey's entire Q1 2025 report right here.