Academy Sports sold $72.2 million of tariff claims for 14.5 cents on the dollar

Academy Sports & Outdoors recorded $83.7 million in refunds, sold $72.2 million of the claims to a third party for $10.5 million, and said the proceeds went mainly to lower prices. ^[12] That is 14.5 cents on the dollar of face. ^[23] Funko sold more than $22 million of claims to a third-party financial institution for $19.2 million, so at most 87 cents, and used part of the money to pay down a term loan. ^[10][21] Xerox's sale of its receivable came to about 76 cents. ^[22] Bloomberg's account does not explain the gap. Academy kept the other $11.5 million of its claims. ^[25]

Bloomberg reported that companies are selling into a growing secondary market for tariff claims because working out the exact amount Customs owes can be a long process. ^[18]

The consumer-sector figure covers one three-month window of disclosures, and set against the duties collected under IEEPA it is 5.9%. ^[20] The same companies produced more than a third of the refund mentions Bloomberg counted across the Russell 3000 in those months. ^[4]

Williams-Sonoma received $200 million and named two uses in late August: $10 million into employee 401(k) contributions, and $47.5 million to vendors who had discounted inventory to absorb tariff costs. ^[5][6] Together that is 28.75% of the refund. ^[24] "We're so appreciative to have the money back and to be able to reward our employees with part of it," Chief Executive Officer Laura Alber said on a call with analysts. ^[7]

Kohl's shared part of roughly $150 million with vendors who paid more to import inventory while the duties were in force, and Chief Financial Officer Jill Timm told analysts the company reinvested cash in the business, including higher inventory in its lower-priced brands. ^[8][9] Elf Beauty is putting some of the $50 million it received into lower prices on roughly 10% of its products. ^[14] Walmart said in August that some of its refund was going into temporary discounts and deals. ^[13]

On the cost side the offset is already in guidance. Helen of Troy said the more than $9 million it received in the first phase of refunds will be "more than offset" by expected higher costs for the rest of the year. ^[15] Bath & Body Works is forecasting $30 million of additional tariff and other input costs in the second half, on the assumption that Canadian tariffs stay at 50% through 2026, CFO Tom Javitch told analysts. ^[17] Stanley Black & Decker said "it appears more likely than not a price increase will be necessary" in 2027. ^[16]

I would expect very little of this money to show up in consumer gross margins, because the disclosed uses are pass-throughs to shoppers, vendors and staff. The counter-case sits in the debt paydowns, which are permanent in a way a promotion is not: Funko's term loan, Xerox's $80 million. ^[10][11] Helen of Troy also called its receipt a first phase, so later tranches may land without a matching price commitment attached. ^[15] A quarter in which consumer companies book refunds into gross margin and hold list prices would settle it the other way.