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Here’s How Some Footwear Companies Are Using Tariff Refunds

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Here’s How Some Footwear Companies Are Using Tariff Refunds

Shoe firms and footwear retailers are mostly using IEEPA refunds for corporate purposes, but a few are using a portion to help with price reductions.

How are shoe brands and retailers using their tariff refunds? It depends on the company.

Companies connected to the footwear industry over the last few months have steadily received their tariff refunds, and some have disclosed how they plan to use the funds.

The tariff refunds are for reciprocal duties imposed last year under the International Emergency Economic Powers Act (IEEPA) that shoe firms paid.

This past February, the U.S. Supreme Court ruled that those duties are illegal. Companies then had to apply for refunds, which the U.S. Customs and Border Protection (CBP) has steadily paid out. Because shoe retailers and brands generally don’t know what each customer bought and when, the refunds they receive typically do not filter back to the consumer. And not every firm has disclosed how they are using the refunds, although some have acknowledged that quarterly results have been positively impacted, whether in connection with diluted earnings per share (EPS) or merchandise margins.

7 million in the second quarter ended Aug. 08. Carl Ford, executive vice president and CFO said the refund positively increased EPS by 6 cents during the reporting period.



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