Hershey Global Expansion Hits a Rocky Patch

24/7 Wall St.

chocolateConfectionery company Hershey Co. (NYSE: HSY) has revised its outlook downward for its fiscal 2015. Previously, Hershey said its expected growth in fiscal 2015 revenue, excluding foreign currency exchange, in the 6% to 7% range. Now the company expects that revenue to reside in the 4% to 5% range, according to its press release.

Hershey experienced greater than expected headwinds in China so far this quarter. A softened Chinese economy compelled consumers to spend less on its products. Hershey also cites increased competitive activity, which is not something long-term shareholders want to hear. Hershey will reevaluate the value of its Chinese subsidiary, Shanghai Golden Monkey Food Joint Stock Co.

Interestingly, Hershey also cited “the accelerated momentum of e-commerce and online purchases” as negatively impacting its results. Certain retailing customers face decreasing traffic due to the final consumers’ tendency to shop online, which begs the question: Why isn’t Hershey heading this…

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