Walmart tariff refunds update: Will customers get reimbursed directly?

Walmart has received nearly $2.9 billion in federal tariff refunds, which has contributed to an increase in its gross profit rate and operating income. The retailer's fiscal 2027 quarter two financial results showed a gross profit rate of 96 basis points higher and operating income of $9.5 billion, up 28.8% from the previous year. Walmart's revenue for the quarter reached $187.94 billion, surpassing analysts' predictions of $186.77 billion. The company's e-commerce sales also grew by 23%.

President and CEO John Furner noted that the company continues to make progress on long-term value drivers, including a significant rise in eCommerce sales. The Supreme Court decision deemed the so-called Liberation Day tariffs, implemented by President Trump, illegal, leading to the issuance of tariff refunds to retailers. Target has received about $1 billion in refunds, while Walmart has received almost $2.9 billion.

The company's guidance for the third quarter indicates a 2% to 4% increase in operating income and a 3% to 3.75% rise in net sales.

Walmart plans to use the refunds to bolster customer experience and price investments in the second half of the year. However, Walmart's shares dropped by around 6% in premarket trading on Thursday, with same-store sales falling short of Wall Street's expectations. The same-store sales growth was 2.6%, compared to the 3.8% consensus estimate.