Tariff Refunds Send Ripples Through Major Retailers' Earnings
Major retailers in the US are dealing with the aftermath of recent tariff refunds following a Supreme Court ruling that President Donald Trump did not have the authority to impose tariffs. The refunds, totaling hundreds of millions of dollars, have had a significant impact on the earnings reports for the second quarter of 2026.
The Home Depot was one of the beneficiaries, receiving a $730 million tariff refund in Q2 2026. This refund accounted for a large part of the company's gross margin increase, with the firm's gross profit rising by 0.3% compared to the same period last year. A significant portion of the refund - around $685 million - was used to reduce the cost of goods sold.
Lowe's received a smaller tariff refund of $80 million, which slightly boosted the company's earnings per share for Q2 2026. However, CEO Marvin Ellison stated that the company did not plan to use these refunds to lower prices.