Nike secures tariff refunds as retailers report mixed margin results

On August 12, 2026, major retailers disclosed fiscal 2026 financial results showing divergent profitability trends. Nike recognized a $986 million benefit in cost of sales during its fourth quarter for recovery of IEEPA tariffs paid. Nike received $302 million of IEEPA tariff refunds as of May 31, 2026, and held $684 million of outstanding IEEPA tariff receivables. Nike's gross margin widened to 42.9% in fiscal 2026 from 42.7% in fiscal 2025, though revenue remained essentially flat at $46.4 billion versus $46.3 billion a year earlier.

Tariff recovery and margin pressure diverge

Walmart's gross profit rate increased 8 basis points in fiscal 2026 compared to fiscal 2025. Walmart's operating income was $29.8 billion in fiscal 2026, compared to $29.3 billion in fiscal 2025. Home Depot's return on invested capital declined to 25.7% for fiscal 2025 from 31.3% for fiscal 2024. Home Depot completed its acquisition of GMS on September 4, 2025, for approximately $5.5 billion in cash consideration including debt repayment.

Cost ratios improve across apparel and discount retail

TJX reported a cost of sales ratio (including buying and occupancy) of 69.0% for fiscal 2026, a 0.4 percentage point decrease from 69.4% in fiscal 2025. SG&A expenses as a percentage of sales fell to 19.1% from 19.4%. Net sales increased 7% to $60.4 billion from $56.4 billion, with comparable sales up 5%. TJX Canada contributed $5.6 billion in net sales, up 8% from $5.2 billion, while HomeGoods segment sales reached $10.2 billion, an 8% increase from $9.4 billion.

Albertson's gross margin rate declined to 27.2% in fiscal 2025 from 27.7% in fiscal 2024. Net sales rose $2.8 billion, or 3.5%, to $83.2 billion from $80.4 billion. Albertsons completed 94 store remodels and opened nine new locations during the year. Loyalty membership grew 12% to 51.2 million members, while digital sales increased 21% compared to fiscal 2024. Identical sales excluding fuel advanced 2.0%.

Performance Food Group absorbs inflation while growing volume

Performance Food Group faced product cost inflation of approximately 4.5% in fiscal 2026 but grew net sales 7.2% to $67.8 billion from $63.3 billion. Gross profit increased 9.1% to $8.1 billion from $7.4 billion. Total case volume climbed 5.1%, while organic case volume rose 2.8%. Adjusted EBITDA reached $1.9 billion, up 9.2% from $1.8 billion a year earlier, and net income increased 5.6% to $359.3 million from $340.2 million.

Walmart's eCommerce contribution and capital deployment

Walmart posted net sales of $706.4 billion in fiscal 2026, up 4.7% from $674.5 billion in fiscal 2025. U.S. comparable sales increased 4.3%, with eCommerce contributing approximately 4.3 percentage points to that growth. Sam's Club U.S. comparable sales rose 2.9%. Capital expenditures reached $26.6 billion in fiscal 2026 versus $23.8 billion a year earlier. Free cash flow improved to $14.9 billion from $12.7 billion.

Strategic acquisitions reshape hardware retail

Home Depot completed its acquisition of GMS on September 4, 2025, for approximately $5.5 billion in cash consideration including debt repayment. Home Depot operated 2,359 stores at February 1, 2026, after opening ten locations in the U.S. and two in Mexico during fiscal 2025. Home Depot reported net sales of $164.7 billion and comparable sales growth of 0.3% for fiscal 2025. Online sales represented 15.9% of net sales and increased 8.7% compared to fiscal 2024. Inventory turnover slowed to 4.4 times at fiscal year-end from 4.7 times a year earlier.

Specialty sectors see divergent pressures

McKesson posted revenues of $403.4 billion in fiscal 2026, up 12% from $359.1 billion in fiscal 2025, with gross profit increasing 9% to $14.6 billion from $13.3 billion. McKesson completed acquisitions of a controlling interest in PRISM Vision for $875 million in April 2025 and Core Ventures for $2.5 billion in June 2025, and sold its Norway disposal group for an adjusted purchase price of $821 million in January 2026. Diluted earnings per share reached $38.38 from $25.72, while the company returned $5.1 billion to shareholders through $4.8 billion in stock repurchases and $381 million in dividends.

Nike reported a net income decline to $3.1 billion from $3.2 billion despite relatively flat revenue. Nike recorded $385 million in employee severance charges during fiscal 2026. NIKE Brand revenues grew to $45.2 billion from $44.7 billion, with apparel revenues rising to $13.4 billion from $13.0 billion, but footwear revenue held flat at $29.5 billion. Converse revenues fell 31% to $1.2 billion from $1.7 billion. NIKE Direct revenue declined 6% on a reported basis to $17.7 billion from $18.8 billion. Return on invested capital fell to 18.7% from 20.2%.