Track how companies discuss tariffs and trade policies in their earnings calls, and understand their impact across different industries and regions.
Following the U. S. Supreme Court decision validating the IEBA tariffs, in Q2, we recognized the impact of tariff refunds and the refund of associated surcharges collected from our customers.
We are lapsing some of the early tariff pieces. As Richard said, they're still very volatile to say the least, but there's no question that as those were introduced in late Q1 of last year and into Q2.
Our Q4 and fiscal year FY '26 guide assumes current tariffs and exemptions remain in place through the end of our fiscal 2026.
This outlook assumes 20% incremental tariff rates from Vietnam and excludes any potential refunds.
We continue to realize positive pricing, which helped mitigate the impact of higher tariffs and inflation.
Geopolitical instability, there's tariffs, the broader consumer pressures that are impacting growth.
We are working with our supplier partners to assess cost reduction opportunities and will take subsequent pricing actions as warranted.
as we expect a onetime tariff refund related to Square hardware to benefit gross profit.
we continue to project $60 million in tariff headwinds this year, primarily in the first half of the year.
Adjusted operating margins was 24.2%, down 110 basis points versus the prior year. This includes 160 basis points of tariffs and increased commercial investments in key growth areas.