All articles tagged with #tariff refunds
Levi Strauss reported Q3 2026 net revenues of $1.61 billion, up 4% year-over-year, and raised its full-year adjusted EPS guidance to $1.54-$1.56. The profit boost was driven by tariff refunds, which added 4.9% to operating margins. However, US revenue fell 1%, and the company lowered its full-year revenue growth target to 7%. Shares dropped nearly 4% post-earnings.
Costco reported receiving $184 million in tariff refunds during its fourth quarter, with the majority of these funds reinvested into lower prices for members. The company applied these reductions to everyday items such as produce, meat, and beverages, as well as non-food categories like home furnishings and hardware. This refund represents approximately one-third of the total amount Costco expects to receive, following a similar payout in the first quarter. Management stated that the goal was to spread the value back to members across items with the highest impact, particularly those affected by the International Emergency Economic Powers Act (IEEPA) tariffs. While the refunds are non-recurring, Costco plans to continue reinvesting future refunds into member value throughout fiscal year 2027.
Costco has received $184 million in refunds from the federal government for tariffs struck down by the Supreme Court. The retailer plans to use these funds to lower prices on everyday and non-food items. This follows a strong fourth quarter where Costco reported nearly $96 billion in revenue, an 11% increase year-over-year, and a 15% rise in net income. The refunds are part of a broader wave of reimbursements expected after a federal judge ruled that importers are entitled to money back for unconstitutional taxes imposed under the International Emergency Economic Powers Act.
Costco has received $184 million in refunds from the federal government for tariffs struck down by the Supreme Court. The retailer plans to use these funds to lower prices on everyday and non-food items. This follows a strong fourth quarter where Costco reported nearly $96 billion in revenue, an 11% increase year-over-year, and a 15% rise in net income. The refunds are part of a broader wave of reimbursements expected after a federal judge ruled that importers are entitled to money back for unconstitutional taxes imposed under the International Emergency Economic Powers Act.
Macy’s posted a strong Q2 with 2.7% same-store sales growth led by Bloomingdale’s and Bluemercury, and adjusted EPS of $0.63 beating estimates helped by roughly $0.23 per share in tariff refunds; net sales reached $4.87 billion. The company plans to reinvest most of the tariff refunds ($96 million) and lift full-year guidance to net sales of $21.6–$21.8 billion, 1.0%–1.5% same-store growth, and adjusted EPS of $2.15–$2.35 as its Bold New Chapter strategy continues (store closures and brand investments).
Lululemon beat Q2 on adjusted EPS ($2.92, aided by $0.86 tariff refunds) but revenue fell 4% to $2.40B, missing estimates; comparable sales dropped 9% (Americas -12%, international -3%). For Q3, management guides revenue of $2.29B–$2.32B and EPS of $0.93–$0.98, well below consensus, and full-year 2026 revenue of $10.35B–$10.50B with EPS of $9.48–$9.73, also below expectations. Gross margin rose to 60.5% due to tariff refunds, while operating margin declined to 18.8%. The weak guidance sparked roughly a 15% drop in LULU shares.
Walmart beat adjusted EPS ($0.81) and revenue ($187.94B, +6%), raising FY27 guidance, but the stock fell about 9% as the margin gain from tariff refunds was largely reinvested into more than 11,000 price rollbacks, leading to softer Q3 guidance (EPS of $0.62–$0.64; sales growth 3.0%–3.75% in constant currency). The move contrasted with Target’s stock rally on a similar tariff windfall, and Walmart also highlighted a large buyback (about $3B) at higher prices than today’s level.
Walmart reports nearly $3 billion in tariff refunds and uses part of the windfall to cut prices for shoppers facing inflation, boosting profit even as U.S. same-store sales rose only 2.6% in the quarter—the slowest in years. The outlook is tempered by higher fuel costs and new Medicare drug-pricing rules, with more than $2 billion in added fuel expenses anticipated this year amid competition from Target and Amazon.
Target disclosed about $994 million in pre-tax tariff refunds, boosting its second-quarter operating income to $2.6 billion from $1.3 billion a year earlier; the refunds follow a Supreme Court ruling that Trump-era tariffs were unlawful, while tariffs policy remains unsettled as Trump delays Canada duties during talks. The retailer is pursuing a price-competitive turnaround and aims to reduce reliance on China sourcing.
Home Depot beat Q2 2026 estimates, posting adjusted EPS of $4.92 on revenue of $47.86B and reaffirming full-year guidance of 2.5%-4.5% sales growth with 12.4%-12.6% operating margin. Net income was $4.77B; comparable sales rose 1.7%, the strongest since Q3 2022. Management cited a “frozen housing market” but said it is gaining share across pro and DIY segments, aided by tariff refunds that offset some input costs. Consumers remain hesitant on larger projects due to inflation and uncertainty, while CEO Ted Decker is on temporary medical leave with Ann-Marie Campbell overseeing daily U.S. operations.
After the Supreme Court struck down Trump-era tariffs, roughly $100 billion in tariffs already refunded to companies is now being returned to consumers by shippers (FedEx, UPS, DHL), with refunds issued automatically where tariffs were paid by the buyer and rolled out in phases. FedEx has begun refunding about $800 million; UPS has filed for refunds and expects customers to see money 1–3 months after Treasury reimbursement; retailers largely plan to use refunds to lower prices rather than issue broad refunds, though some cases may involve direct reimbursements. Dozens of class-action lawsuits allege tariff‑driven price hikes, but proving the link to individual purchases is challenging; the overall pace depends on CBP processing of claims.
After a Supreme Court ruling struck down many Trump tariffs and ordered refunds, more than 26,000 companies signed up for a CBP refund portal, including Apple and Costco, choosing to pursue refunds quietly to avoid provoking Trump. Some firms are still suing to preserve their rights, while others delay or avoid litigation to dodge potential backlash, as the portal handles straightforward claims and disputes emerge over filings.
Apple plans to apply for tariff refunds and reinvest any recovered funds into US innovation and manufacturing, signaling a careful balancing act between cost management and political optics that has earned Tim Cook a reputation as a Trump whisperer; other companies like Ford and GM are also pursuing refunds, with funds expected to flow within 60–90 days after processing by US Customs.
The Trump administration moved quickly to build a system to reimburse billions of dollars in tariffs, but the White House is now pressuring companies not to seek refunds, leaving importers to decide whether to pass savings to customers or risk political backlash. The refund pool could reach about $165 billion, with roughly 57,000 importers already starting the eligibility process out of an estimated 300,000 who paid tariffs. Costco signaled it would return value to members via lower prices, while some CEOs warn that not filing could invite litigation. The White House has not yet said whether it will appeal a court ruling limiting refunds, and the Supreme Court previously narrowed the tariffs under IEEPA.
New York Gov. Kathy Hochul called on the federal government to issue $1,700 refunds to New York families for tariffs she says cost New Yorkers $13.5 billion, arguing the relief is overdue as a court battle continues. She notes refunds for businesses are being processed by Customs and Border Protection, with funds expected 60–90 days after approval, and warns the Trump administration may delay or shrink refunds.