The Hershey Company stock research
FY2025 Q1
The Hershey (HSY) Gross Margin — Quarter Ended Mar 30, 2025
Revenue declined while cost of revenue rose, causing gross profit to fall sharply. As a result, gross margin weakened significantly compared to both the prior quarter and the same quarter last year.
Gross margin takeaway
Quarter ended Mar 30, 2025 · FY2025 Q1
Revenue declined while cost of revenue rose, causing gross profit to fall sharply. As a result, gross margin weakened significantly compared to both the prior quarter and the same quarter last year.
- The increase in cost of revenue relative to the decline in revenue was the primary factor behind the margin compression.
- Compared to the immediately preceding quarter, gross margin was lower due to a combination of lower revenue and higher cost of revenue. Versus the same quarter one year earlier, gross margin also weakened as revenue decreased and cost of revenue increased.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.7%
Gross profit
$944.3M
Revenue
$2.8B
Cost of revenue
$1.9B
Quarter-over-quarter change
-20.3 pts
Year-over-year change
-17.9 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2024 | $2.1B | $833.7M | $1.2B | 40.2% |
| Sep 29, 2024 | $3.0B | $1.2B | $1.8B | 41.3% |
| Dec 31, 2024 | $2.9B | $1.6B | $1.3B | 54.0% |
| Mar 30, 2025 | $2.8B | $944.3M | $1.9B | 33.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-20.3 pts
Year-over-year change
Mar 31, 2024
-17.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The increase in cost of revenue relative to the decline in revenue was the primary factor behind the margin compression.
Compared to the immediately preceding quarter, gross margin was lower due to a combination of lower revenue and higher cost of revenue. Versus the same quarter one year earlier, gross margin also weakened as revenue decreased and cost of revenue increased.
Monitor the trend in cost of sales, as its increase outpaced revenue changes in the current quarter.