Hershey CEO offers a ghoulish warning on how Halloween candy sales are going

Hershey ( HSY ) investors were not saved by a friendly earnings day on Thursday.

Shares are melting in early trading as the chocolate giant lowered its organic sales outlook for the year to about 3%, the low end of its previous 3% to 3.5% range.

Organic sales in the third quarter grew a meager 0.8%.

Hershey shares were down 10% year to date ahead of the company's latest earnings report.

The more cautious outlook seems to stem from weakness in the all-important Halloween candy selling season, in large part because of price increases.

"Halloween participation is expected to be in line with 2025, though financial pressures could shape final purchase decisions. As expected, the compressed calendar is affecting the season's pace," Hershey CEO Kirk Tanner said on the earnings call.

He added, "We are optimistic that our enhanced assortment, new pack types and value price points, seasonal innovation, and increased investment will drive engagement in these final days leading into this weekend's celebrations. Consistent with our expectations, our actions are delivering healthy consumption trends on both a one-year and two-year basis."

Halloween candy sales declined 6.7% in the month ending Oct. 17 compared to the same period last year, according to data from NielsenIQ. The AP first reported the decline.

The data also showed an 11.7% decline in candy sales in mid-September.

Brian Sozzi is Yahoo Finance's Executive Editor, host of the Sozzi Unleashed morning show, the ' Power Players With Brian Sozzi' podcast and a member of Yahoo Finance's editorial leadership team.