Target’s tariff refund reaches nearly $1 billion

Walmart reported a 5.9% revenue increase to $187.9B, with U.S. comparable sales rising 2.6%, the weakest since 2020. Target saw a 5.3% sales gain to $26.54B, with growth in discretionary categories. Walmart plans to use $2.9B in tariff refunds to lower prices, while Target highlights trendy products and new partnerships. Both companies saw growth in advertising and membership businesses.

Major US retailers reported Q2 earnings, revealing $5B in Trump tariff refunds. Home Depot, Target, Lowe's, TJX, and Walmart received funds, with Walmart getting $2.9B. Companies used refunds to cut costs, boost profits, and pay bonuses, but not to lower prices for consumers. Lowe's lowered its annual projections. Tariffs have increased consumer costs by $1,100 annually, per Yale Budget Lab.

Target reported two consecutive quarters of growth, with Q2 net sales up 5.3% YoY to $26.5B and comparable sales up 3.8%. Digital sales rose 8.7%, and the company raised its full-year outlook. Despite this, shares fell 4% in premarket trading. Analysts note uneven growth in apparel and home, but see signs of a turnaround.

Walmart reported Q2 earnings exceeding expectations, with $2.9B in tariff refunds contributing to the results. Sales growth slowed to 2.6%, the lowest in six years, partly due to higher gas prices. Target also received $994M in refunds. Both plan to use funds to lower prices, but experts warn of potential future price increases and limited consumer benefits.

Walmart, Amazon, and Target reported Q2 earnings showing AI-driven sales growth. Walmart's eCommerce grew 23%, with AI assistant users spending 40% more. Amazon's Alexa for Shopping saw active users nearly double. Target's digital traffic from AI platforms grew over 3.5x faster than the industry average. Albertsons saw a 10-26% increase in order value with AI tools. Shopify's AI-referred traffic and orders tripled, but AI's impact on discovery-driven retail remains uncertain.

Stock futures are steady after three days of declines. President Trump delayed 50% tariffs on Canadian imports. Target (TGT), TJX (TJX), and Lowe's (LOW) reported earnings, with Lowe's cutting its forecast. SK Hynix (SKHY) shares rose on a $29B buyback plan. Fed meeting minutes are due later.