Hershey Co. cut its sales and earnings outlook for the year as shoppers continue to reduce purchases of higher priced chocolates and candies.

The maker of Reese’s and Dot’s Pretzels said Wednesday that it now expects net sales growth to be around 2%, from the previous range of 2% to 3%, and that adjusted earnings per share will be “down slightly” from unchanged before.

Net sales last quarter sank 17% to $2.07 billion, trailing the $2.31 billion average estimate of analysts surveyed by Bloomberg. Adjusted earnings were $1.27 per share, below analyst expectations of $1.44.

The company’s shares were down 1% in New York trading at 9:50 a.m. The stock was up 5.9% year to date through Wednesday’s close, compared with a 9.5% gain for the S&P 500 Consumer Staples Index.

Record high cocoa prices have hit Hershey’s margins and forced the company to raise their prices further, even as consumers cut down on brand name purchases at the supermarket.

The company said that margins fell on the higher commodity costs, offsetting productivity improvements and higher prices.

“Today’s operating environment remains dynamic with consumers pulling back on discretionary spending,” Chief Executive Officer Michele Buck said in a press release. “Our business has been impacted by these trends.”

Oreo-maker Mondelez International Inc., meanwhile, expects cocoa prices to fall, its CEO said on Tuesday in its earnings call.

“We soon expect the market correction to a more sustainable price,” Chief Executive Officer Dirk Van de Put said during the call.

The outlook for next season’s main crop is “encouraging” and a clearer indication on price trends could come by September, Chief Financial Officer Luca Zaramella added.