A Target store in Los Angeles, California, Aug. 19, 2026.
Justin Sullivan | Getty Images
Tariff refunds have muddied retailers’ earnings reports in recent weeks as Wall Street struggles to parse through the confusion.
Most major retailers applied for refunds after the Supreme Court ruled in February that the International Emergency Economic Powers Act did not authorize President Donald Trump to impose the tariffs. That money began flowing in during the second quarter, as retailers saw major boosts to their profits.
For the most part, those returns have helped companies offset cost inflation and prop up margins, especially as they face cost pressures like the rising price of fuel. But the way those retailers have reported those refunds and incorporated them into their earnings has differed greatly, leading to confusion about how to read the strength of their results and their future outlooks.
“These trails aren’t always clean in terms of…
