Hershey Co. has lowered its full-year organic net sales growth forecast to approximately 3 percent, attributing the revision to softer consumer demand amid ongoing inflationary pressures and elevated interest rates. The company issued the warning Thursday as U.S. shoppers face tighter budgets heading into the Halloween holiday on Saturday.

Chief Executive Kirk Tanner highlighted challenges across key retail channels, including convenience stores, which have been particularly affected by consumers adjusting spending to accommodate higher gasoline prices. The impact of broader economic factors, such as inflation and supply chain disruptions linked to geopolitical tensions involving the U.S. and Iran, has also contributed to restrained consumer sentiment, which remained near record lows in October.

Despite these headwinds, Hershey executives expressed hope that last-minute purchases of bulk candy ahead of Halloween would help mitigate weaker sales in earlier periods. “Now we need consumers to show up, we need them. The last few days are really critical,” Tanner said during a quarterly earnings call.

The company’s outlook underscores growing caution among consumer goods companies as economic uncertainty weighs on discretionary spending. Hershey’s revision reflects a more conservative expectation for growth compared with earlier projections, signaling concern that inflation and rising borrowing costs may continue to limit consumers’ willingness to spend on seasonal treats.