Companies Pursue IEEPA Tariff Refunds After Supreme Court Ruling, But Record No Benefits Amid Uncertainty
Six companies across multiple sectors have applied for refunds of tariffs paid under the invalidated IEEPA authority, yet none have recognized the potential windfall due to unclear timing and amounts.
Coverage: 6 of 15 companies in this theme (ANF, OOMA, PVH, SCVL, VSCO, WOOF) — a sample, not the full set.
A February 2026 U.S. Supreme Court decision invalidating tariffs imposed under the International Emergency Economic Powers Act (IEEPA) has triggered a wave of refund claims from companies across retail, consumer goods, technology, and pet retail sectors, including Abercrombie & Fitch, Ooma, PVH, Victoria's Secret, Shoe Carnival, and Petco. The Court of International Trade subsequently directed U.S. Customs and Border Protection in March 2026 to refund previously collected IEEPA tariffs with interest, and CBP launched a formal refund program in April 2026.
Despite filing claims, most companies have declined to book any financial benefit. Abercrombie & Fitch applied for refunds but as of May 2, 2026, had not recognized any due to uncertainty over timing, approval, and amount. Ooma similarly disclosed potential eligibility but recorded no benefit, citing uncertain recoverability and timing. Victoria's Secret and Petco followed the same conservative approach, with Victoria's Secret electing not to record a receivable and Petco stating it will recognize refunds only when realized or realizable.
PVH stands as the notable exception. The company submitted claims and elected to apply a gain contingency model under ASC 450-30, initially recording no receivable as of May 3, 2026. However, PVH subsequently received $27 million in cash payments plus interest and expects an approximately $100 million benefit to cost of goods sold in the second quarter of 2026.
The refunds arrive against a backdrop of substantial tariff costs. Abercrombie & Fitch incurred roughly $90 million in net tariff expense in Fiscal 2025, representing 170 basis points of net sales. Victoria's Secret estimated tariffs reduced operating income by approximately $85 million in fiscal year 2025 and by an incremental $14 million in the first quarter of 2026. PVH's full year 2025 gross profit took a $69 million hit before mitigation efforts, and the company now projects a net negative impact of approximately $195 million on 2026 gross profit.
The legal victory has not eliminated trade policy headwinds. Following the Supreme Court's ruling, the U.S. administration imposed a temporary 10% global tariff under Section 122 of the Trade Act of 1974, running through July 24, 2026. Shoe Carnival captured the prevailing uncertainty, stating that the ruling and the executive branch's reaction have created considerable uncertainty regarding the scope and duration of current and potential tariffs, and that the company cannot reasonably estimate the total financial impact.
Source: company public filings.