Home Depot collected $730 million in IEEPA tariff refunds in a single quarter, with $685 million tied to inventory already sold, immediately reducing cost of goods sold and delivering a 145 basis point gross margin benefit. That gain was trimmed by 60 basis points of unplanned cost inflation, leaving 85 basis points before an additional 60 basis point drag from acquisition-related mix, bringing net year-over-year gross margin improvement to just 25 basis points. Amazon disclosed roughly $600 million in Q2 tariff refunds, while Walmart is pursuing approximately $2.4 billion in total refunds, planning to redirect that money toward price investments rather than margin improvement.
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