Walmart received nearly $2.9 billion in tariff refunds
Walmart reported receiving almost $2.9 billion in federal tariff refunds, a figure that contributed to a rise in the company's gross profit and operating income for the second quarter.
Walmart has received nearly $2.9 billion in federal tariff refunds, the retail chain announced on Thursday as part of its fiscal 2027 second-quarter financial results. The company attributed the refund to an increase in its gross profit rate and operating income.
The gross profit rate rose by 96 basis points, while operating income increased to $9.5 billion from $7.3 billion year-over-year, marking a 28.8% jump. Total revenue for the quarter reached $187.94 billion, surpassing Wall Street's expectations. E-commerce sales saw a 23% increase.
The refunds stem from a Supreme Court decision that ruled certain tariffs imposed under President Trump's administration as illegal. Competitor Target announced a day earlier that it had received nearly $1 billion in similar refunds.
For the third quarter, Walmart projects operating income to grow between 2% and 4%, with net sales increasing by 3% to 3.75%. The company stated that the fiscal second-quarter results reflect the prioritization of tariff refunds into customer experience and price investments in the latter half of the year.
Despite the positive earnings report, Walmart's shares were down approximately 6% in premarket trading on Thursday. This decline followed news that U.S. same-store sales growth of 2.6% fell short of Wall Street's consensus estimate.