Burlington Just Got $55 Million in Tariff Refunds. It Says Every Dollar Will Go to Shoppers

The off-price retailer says customers need the help more than its bottom line does—even as its comparable sales missed some analysts’ expectations.

Burlington just received roughly $55 million in federal tariff refunds. It says it will give all of it back to customers.

On Thursday, the retailer shared the figure in its second-quarter earnings results.

The chain earned roughly $184 million in net income for the three months ending in early August. After excluding the $41 million after-tax benefit tied to the tariff refunds, its net income was $151 million.

Burlington told investors on Thursday that it would

Burlington told investors on Thursday that it would direct the full $55 million refund, money it is getting back from the government for tariffs paid on imports, toward sharper prices rather than profits. According to CEO Michael O’Sullivan, the decision came down to who needs the help.

Refreshed leadership advice from CEO Stephanie Mehta

“No. 1, it feels like the right thing to do for our customers,” O’Sullivan told analysts noting that many households, especially moderate- to lower-income families, have struggled with the higher cost of living on essentials like groceries, rent, and gas

The impact of tariff refunds

“Burlington has made a very clear statement of intent about what it will do with the tariff refund,” Neil Saunders, managing director of GlobalData, told Inc. “Some other retailers have nodded to the fact they will invest in prices but have been less specific about the degree to which they will do this or how much of their refunds will be used to make this investment.”

The move reflects a concern that the financial squeeze from rising prices is lingering well past expectations from earlier this year, when fuel price spikes seemed temporary, O’Sullivan told analysts.

Source: www.inc.com