Burlington Stores to Cut Prices with $55M Tariff Refund
The retailer plans to use its refund to lower prices, following similar moves by Walmart and e.l.f. Beauty, who have also passed on tariff refunds to customers
Burlington Stores plans to reinvest its entire $55 million tariff refund into lower prices during the second half of fiscal 2026. This move is part of a larger trend among retailers, with companies like Walmart and e.l.f. Beauty also using their tariff refunds to cut prices and benefit customers.
Walmart, for example, rolled back prices on 11,000 items using roughly $2.9 billion in tariff refunds. The company's Chief Financial Officer, John David Rainey, noted that shoppers began making visible spending trade-offs in June as gas prices climbed above $4 a gallon. e.l.f. Beauty, which received about $50 million in refunded tariff payments, ran a series of pricing tests before permanently lowering prices across around 10% of its catalog.
Not all companies are passing on the refunds, however. Lowe's, which received roughly $80 million in refunds, chose to direct them toward shareholder returns rather than price reductions. Sony, which expects to receive $508 million in tariff refunds, has also come under scrutiny for not passing on the refunds to customers. The company is facing class-action lawsuits accusing it of failing to pass tariff refunds on to consumers after raising prices of PlayStation consoles.
The tariff refunds are a result of a US Supreme Court decision earlier this year, which held that the International Emergency Economic Powers Act did not give President Donald Trump authority to impose the tariffs. This decision has resulted in over $160 billion in payments back to importers. Tractor Supply, for example, has channeled its refunds into shielding customers from freight and fuel cost increases, lowering prices on products including pine shavings and premium pet food.
## Why it matters The decision by Burlington Stores and other retailers to pass on tariff refunds to customers is significant, as it could help to drive sales and boost consumer confidence. With inflation-fatigued shoppers pulling back on spending, the move to lower prices could be a key factor in determining the success of these retailers in the coming months. The Clean Clothes Campaign is also calling on apparel brands importing to the US to publicly disclose their tariff refunds and ensure that refunds reach garment workers and suppliers who have suffered the consequences of US tariff increases.
## What happens next As the retail industry continues to navigate the impact of tariff refunds, it will be important to watch how companies like Burlington Stores, Walmart, and e.l.f. Beauty use these refunds to drive sales and boost customer confidence. With the US Supreme Court decision having far-reaching implications for the industry, it is likely that we will see more companies passing on tariff refunds to customers in the coming months.
