Shares of Hershey fell 3.6% post-earnings, as investors appeared disappointed by ongoing deceleration in North America confectionery market share amid heightened competition and lingering concerns about guidance in light of a challenging macro backdrop.

• Management acknowledged a year-over-year decline in confectionery market share, citing earlier-than-expected competitive merchandising and innovation from both mainstream and premium brands.
• Despite strong Easter sell-through that exceeded internal expectations, Hershey's overall category sales were impacted by a shorter season compared to last year (two fewer weeks).
• The company maintained that the macro environment (including SNAP program changes and gas prices) is tracking within expectations, though it continues to plan for SNAP-related headwinds to increase through the year.
• Elasticity trends remain favorable versus plan, with management reiterating a conservative stance for the remainder of the year.
• Outlook for the second half relies on new innovation and merchandising, but the near-term competitive intensity and market share losses likely weighed on the market reaction.