The Hershey Company stock research
FY2025 Q2
The Hershey (HSY) Gross Margin — Quarter Ended Jun 29, 2025
Revenue was lower than the prior quarter but higher than the same quarter last year. Gross profit and gross margin both weakened compared to the prior quarter and the year-ago quarter, as cost of revenue declined less proportionally than revenue.
Gross margin takeaway
Quarter ended Jun 29, 2025 · FY2025 Q2
Revenue was lower than the prior quarter but higher than the same quarter last year. Gross profit and gross margin both weakened compared to the prior quarter and the year-ago quarter, as cost of revenue declined less proportionally than revenue.
- The gross margin weakened sequentially and year-over-year, driven by a larger relative decline in gross profit compared to revenue. The cost of revenue as a share of revenue increased, compressing margin.
- Compared to the prior quarter, revenue, gross profit, and gross margin were all lower. Versus the same quarter last year, revenue was higher but gross profit and gross margin were lower, indicating a higher cost structure relative to sales.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
30.5%
Gross profit
$796.3M
Revenue
$2.6B
Cost of revenue
$1.8B
Quarter-over-quarter change
-3.2 pts
Year-over-year change
-9.7 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 |
|---|---|---|---|---|
| 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% |
| Jun 29, 2025 | $2.6B | $796.3M | $1.8B | 30.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 30, 2025
-3.2 pts
Year-over-year change
Jun 30, 2024
-9.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened sequentially and year-over-year, driven by a larger relative decline in gross profit compared to revenue. The cost of revenue as a share of revenue increased, compressing margin.
Compared to the prior quarter, revenue, gross profit, and gross margin were all lower. Versus the same quarter last year, revenue was higher but gross profit and gross margin were lower, indicating a higher cost structure relative to sales.
Monitor the trend in cost of revenue relative to revenue, as its proportion increased this quarter and compressed gross margin.