Advance Auto Parts Inc. (NYSE:AAP) said on Thursday that tariff refunds contributed $26 million to its second-quarter gross margin, providing boost to the year-over-year margin change.
$26 Million Refund Leads To Margin Boost
During the earnings call, Advance Auto Parts’ CFO Ryan Grimsland confirmed that “Tariff refunds contributed $26 million in gross margin, accounting for 130 basis points of year-over-year change,” he said.
Shane O’Kelly, the CEO of Advance Auto Parts, said that excluding the International Emergency Economic Powers Act (IEEPA) refunds, the company “generated a gross margin of approximately 45% for the first half of 2026.” The company’s adjusted operating margin for the second quarter was 5.6%.
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