IEEPA Tariff Refunds Flow to Footwear Firms: $1 Billion for Nike Alone

Nike booked $986 million in IEEPA tariff refunds in fiscal 2026 — $302 million received in its fourth quarter ended May 31 and $684 million expected by mid-July — the largest single disclosure among footwear firms reporting payouts for duties the U.S. Supreme Court ruled illegal in February.

The refunds cover reciprocal tariffs imposed last year under the International Emergency Economic Powers Act (IEEPA), a 1977 law the Court found did not authorize the duties. Companies applied for refunds, and U.S. Customs and Border Protection (CBP) has steadily paid them out. Because brands and retailers generally can't trace which customer bought what and when, the money typically does not flow back to shoppers — it lands on the P&L.

Where the money went, company by company

The disclosed refunds and their treatment vary widely:

• Academy Sports & Outdoors: $83.7 million in Q2 ended Aug. 1, helping lift gross margin to 40.4 percent from 36.0 percent. CFO Carl Ford said the refund added 6 cents to EPS, and the retailer has "received substantially all tariff refunds." It is reinvesting in pricing; CEO Steven Lawrence said the company completed a "thorough review and have adjusted pricing across many of our private brand products," returning customers to pre-tariff prices, which he said "already stimulated demand, driven traffic and delivered value to our customers."
• Boot Barn: $2.2 million in Q2 ended Sept. 26, recognized in cost of goods sold, after $14.7 million in Q1. CFO James Watkins said full-year refunds should benefit merchandise margin by $17.8 million, with Q3 adding $700,000 or 2 cents per diluted share. Merchandise margin is now expected at roughly 52.3 percent of sales, including 70 basis points from refunds.
• Caleres (Famous Footwear, Stuart Weitzman): $57.4 million in Q2 — $55.6 million as a reduction in cost of sales and $1.8 million of interest income in other income, per CFO Daniel L. Karpet.
• Crocs: nearly $64.1 million in Q3 ended Sept. 30, excluded from its reported 60.3 percent adjusted gross margin to show underlying performance. Diluted EPS was $4.52; adjusted EPS of $3.69 beat the $3.31 consensus. No use of funds disclosed.
• Deckers Brands (Hoka, Ugg): $46.0 million plus $3.0 million interest, driving Q2 diluted EPS of $2.31 versus Wall Street's $1.76–$1.83 range. CFO Steven J. Fasching said EPS excluding refund impact was $2.03 — 11.5 percent growth versus last year's $1.82, versus 27 percent growth including it.
• Dick's Sporting Goods: $59 million plus $2.1 million interest, comprising $57 million for Dick's and $2 million for Foot Locker. CFO Navdeep Gupta said: "We have reinvested these benefits into the business to remain competitively priced and help offset ongoing fuel, supply chain and other inflationary cost pressures."
• Genesco (Journeys): $22.5 million — $21.8 million refund plus $700,000 interest — with no further refunds in guidance. CFO Jonathan M. Collins called the proceeds "non-operating in nature" destined for "growth investments and returns to shareholders."
• On Holding: 52.6 million Swiss francs ($63.7 million) in U.S. refunds; gross margin was 72.6 percent, or 66.9 percent excluding them. On raised its 2026 outlook, guiding low-20 percent constant-currency sales growth and gross margin around 67.5 percent including refunds.
• Shoe Station Group: expects roughly $1.2 million total, with initial claims filed in July and more in H2 fiscal 2026, per CFO W. Kerry Jackson.
• Steven Madden: $92.1 million including $3.1 million interest; CFO Zine Mazouz said only about $1 million remains outstanding and the funds were used "to pay down debt."
• Weyco Group: $1.8 million partial refund in Q2 plus $17.5 million received in July, totaling $18.6 million against claims of $19.3 million. The remaining $1.2 million claim, submitted in October, awaits CBP determination and isn't yet recognized.

What does this mean for sourcing teams?

The refund cycle is closing — Academy and Dick's report substantially all funds collected. For importers, the takeaway is twofold: file any remaining claims now, as Weyco's pending $1.2 million shows CBP still has unresolved amounts, and strip refund income from margin baselines when setting 2026 cost targets, because merchandising teams that don't will budget against inflated numbers that won't repeat.