Hardware Retailing The Industry's Source for Insights and Information
Many major retailers received tariff refunds in the second quarter following the Supreme Court’s rule that President Donald Trump did not have the power to impose tariffs, impacting earnings reports for the quarter. Top home improvement retailers allocated these extra funds in different ways, affecting factors like pricing and gross margin.
The Home Depot’s gross margin rose 0.3% in Q2 2026 compared to the same period last year, largely driven by their $730 million tariff refund. Around $685 million of the refund was used to reduce the cost of goods sold.
Lowe’s received roughly $80 million in tariff refunds, slightly boosting the company’s earnings per share for the second quarter. CEO Marvin Ellison said the company did not plan to use these refunds to lower prices.
Tractor Supply Company will focus on offering promotions and lowering prices on certain items following the company’s refund. Tractor Supply’s gross margin rose to 37.1% in the second quarter of 2026, up from 36.9% in Q2 2025.
Other large names in retail like Walmart and Target saw impacts of the refunds reflected in Q2 earnings, with Walmart’s gross profit up 1.6% year over year and Target lowering prices on over 10,000 items in the second quarter.
