Walmart posted strong sales and profits in the latest quarter helped by a massive $2.9 billion in tariff refunds.
The nation’s retailer earned $6.4 billion in net income in the three months ending July 31. That’s down from last year, but better than analysts expected.
The company told CNN it is eligible for approximately $2.9 billion in tariff refunds, or the money it will get back from the government for tariffs paid on imports in 2025 and early 2026. To date, it has received most of the money.
Walmart, which raised its guidance for the year, said it would invest the tariff refunds in “customer experience and price investments,” or price cuts.
It’s not the only big retailer logging big tariff refunds during the latest quarter. Earlier this week, big box rival Target reported its refund came to $994 million. TJX, which operates chains including TJ Maxx, Marshalls and HomeGoods, got $331 million. Home improvement stores Home Depot and Lowe’s reported $730 million and $80 million refunds, respectively.
The Supreme Court ruled in February that President Donald Trump’s most sweeping tariffs were illegal. In May, the government began issuing refunds from the $168 billion collected from 330,000 importers. As of July 31, $100 billion had been sent out, according to a court filing by the US Customs and Border Protection (CBP).
It’s not just retailers booking large refunds from past tariff payments. Nike, Amazon and FedEx, among others, have all reported refunds during their most recent earnings results. Tech giant Apple alone collected nearly $2.2 billion.
Legally, CBP is only on the hook to distribute refunds to the entities that paid the tariffs, officially known as the importer of record. But Costco, among other companies, is facing class-action suits from consumers aiming to get a slice back of what they believe to be the share they covered.
Despite the pressure from consumers, most companies, didn’t say whether customers who paid higher prices would benefit from these large refunds. Apple will put its money toward planned investments in US operations. Several other companies said during their earnings calls that the refunds are being used to offer more promotions.
Two companies, FedEx and Amazon, are planning to give back.
FedEx said it will distribute its $800 million in refunds back to customers who directly footed the tariff bill, even setting up an online portal. Amazon said the $640 million in tariff refunds it received will be returned only to customers that fit a “limited set of circumstances.”
– CNN’s Elisabeth Buchwald and Nathaniel Meyersohn contributed to this report
