Several major off-price retailers are now receiving refunds for tariffs they previously paid under the International Emergency Economic Powers Act (IEEPA), with executives at Burlington, TJX and Ross Stores offering more details on how those funds are affecting their businesses.
Burlington has received $55 million in tariff refunds and intends to reinvest the money into its operations, particularly to strengthen value for customers facing higher living costs. TJX, meanwhile, received $331 million in IEEPA-related refunds, although part of the benefit was offset by supply chain investments and additional compensation expenses. At Ross Stores, roughly $253 million in refunds has prompted renewed discussion around the retailer’s approach to pricing.
The refunds are reaching retailers and other importers after U.S. Customs and Border Protection launched a dedicated system in April to return IEEPA tariffs. As of Aug. 21, the system had sent approximately $106.6 billion in IEEPA tariff refunds for disbursement.
Walmart, Target and Amazon are among the importers that have already started receiving refunds and have publicly discussed how they intend to handle the money from the invalidated levies.
The issue marks a notable turn for off-price retailers. A year before President Donald Trump began his second term, TJX CEO Ernie Herrman had suggested that the possibility of higher tariffs and market “chaos” could actually create favorable buying opportunities.
Ross Stores and Burlington also appeared relatively unfazed by tariffs at the time. Analysts had argued that the off-price business model offered some protection because these retailers source merchandise from other retailers and brands, potentially creating a degree of insulation from tariff pressures.
That protection proved less complete than initially expected. Tariffs eventually began putting greater pressure on off-price retailers, forcing companies to adjust both inventory and pricing strategies in an effort to protect margins.
Now that millions of dollars in IEEPA tariffs have been both paid and returned, Burlington, TJX and Ross are taking different approaches to the refunds.
Burlington will reinvest refunds to strengthen customer value
Burlington received approximately $55 million in tariff refunds during the second quarter, CEO Michael O’Sullivan said during the company’s Aug. 27 earnings call.
Rather than treating the reimbursement as a one-time earnings boost, Burlington plans to put the money back into the business during the second half of the year. The decision comes as rising living costs continue to weigh on many moderate- and low-income households.
“I want to be explicit about the decision that we have made here,” O’Sullivan told analysts. “Rather than taking a one-time boost to earnings, we are planning to use the refunds to deliver sharper values for our customers.”
According to O’Sullivan, Burlington’s $55 million refund is significantly smaller, both in dollar terms and as a percentage of sales, than those received by many of its retail peers and competitors.
The company attributes the difference to a strategic decision to move away from product categories that were more heavily exposed to tariffs. That shift affected Burlington’s sales trends during the second half of 2025, but it also helped reduce the retailer’s exposure to tariff-related pressures and supported stronger earnings.
“Reinvesting the refunds into sharper values feels like the right thing to do for our customers,” O’Sullivan said. “And at the same time, we’re confident that we can hit our targets without flowing these refunds to earnings.”
Because the company intends to reinvest the refunded money across the third and fourth quarters, Burlington expects the overall impact of the tariff refunds on its full-year guidance to be neutral, Executive Vice President and CFO Kristin Wolfe said.
TJX is directing part of its refund toward employee compensation
TJX, the parent company of several major off-price chains including T.J. Maxx, Marshalls and HomeGoods, received $331 million in IEEPA-related tariff refunds during the second quarter of fiscal year 2027, according to an Aug. 28 securities filing.
The retailer estimated that it had paid approximately $490 million in IEEPA tariffs overall. As of Aug. 1, however, TJX had not recorded a receivable for any additional refunds.
The reimbursement has also affected the company’s compensation expenses. TJX accrued an additional $112 million for year-end compensation and bonuses for eligible associates as a result of the refunds, a company spokesperson told Supply Chain Dive.
“The net benefit of tariff refunds was $219 million for the Company’s second quarter Fiscal 2027 pretax profit,” the spokesperson said in an email. “The remaining amount will be used to support our future growth.”
The impact can also be seen in TJX’s margins. During the first six months of the fiscal year, the profit margin for the company’s “Marmaxx” segment rose to 15.6%, compared with 14.2% during the same period a year earlier.
The increase was driven in part by the net benefit from tariff refunds and favorable merchandise margins. Those gains were partially offset by investments in the supply chain, as well as store wage and payroll costs.
Ross Stores maintains its pricing strategy
Ross Stores has received approximately $253 million in IEEPA tariff refunds, according to an Aug. 20 securities filing.
Unlike Burlington and TJX, Ross has not specified how it plans to use the refunded money. However, the issue has provided an opportunity for CEO James Conroy to explain the retailer’s approach to pricing as tariff pressures have evolved.
During an Aug. 20 earnings call, Conroy noted that Ross had been reluctant to increase its average unit retail price, or AUR, over the previous four quarters as new tariffs took effect.
While several other retailers moved more quickly to pass higher costs on to consumers — and are now reversing some of those increases — Ross has taken a more measured approach.
“We’ve tried to maintain a little bit more stability,” Conroy told analysts.
That strategy is expected to continue, although Ross anticipates some modest AUR increases during the second half of the year. The company expects those increases to remain in the low-single-digit range.
“But I’m liking sort of the consistency of our pricing strategy right now,” Conroy said. “And I think as it stands, if we were to do some competitive price shopping, we would look very, very competitive.”
For Ross, the tariff refund therefore comes as the retailer continues to prioritize pricing consistency and competitive positioning rather than making an immediate, broad shift in how it prices merchandise.
Three different approaches to the same tariff windfall
The three retailers are taking notably different approaches to the money returned through the IEEPA tariff refund process.
Burlington intends to direct its $55 million reimbursement toward customer value and expects the move to leave its full-year guidance neutral. TJX’s $331 million refund generated a $219 million net pretax benefit in the second quarter, while additional funds are being used to support future growth and employee compensation. Ross, which received approximately $253 million, has not detailed a specific use for the money but continues to emphasize consistency in its pricing strategy.
The developments highlight how off-price retailers are balancing tariff relief with broader pressures across merchandise costs, supply chains, wages, consumer purchasing power and competitive pricing.
The refunds may provide a financial benefit, but for these retailers, the bigger question is how best to turn that temporary relief into stronger customer value, operational investment and sustainable growth.
