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A group of Democratic lawmakers wants tariff refund payouts to flow beyond corporate balance sheets.

House Democrats are calling on major retailers and logistics companies to return any refunds tied to overturned Trump-era tariffs to consumers, arguing the money should help offset higher prices rather than fund buybacks or executive compensation. With up to $175 billion potentially eligible for refunds, the fight is becoming about who captures the benefit of tariff relief.

Let’s dive into today’s edition.

Walmart reported 5.4% adjusted profit growth in fiscal 2026, supported by 24% global e-commerce growth and $150.4 billion in online sales, according to its latest fiscal 2026 annual report, underscoring how digital channels are becoming a bigger driver of the retailer’s expansion.

Revenue rose 4.7% to $713 billion, while membership fee income climbed 15.5%, with growth supported across Walmart U.S., international operations, and Sam's Club. The report also highlighted investments in AI, automation, and faster delivery as part of Walmart’s lower-cost growth strategy.

In his first shareholder letter as CEO, John Furner expressed confidence in Walmart’s business model and highlighted investments in associates and AI-powered solutions, saying the company is advancing a people-led, tech-powered approach to the future of retail.

Procter & Gamble warned surging oil prices could cut fiscal 2027 profit by roughly $1 billion after tax, as higher energy costs ripple through packaging materials, feedstocks, and transportation. The company also flagged a $150 million hit in the current quarter tied to commodity inflation and logistics disruption.

The warning is one of the largest cost alerts yet from a consumer goods company linked to the Middle East conflict, highlighting how oil’s jump from about $60 to $100 a barrel is feeding into broader supply chain pressures. P&G also maintained expectations for a nearly $400 million tariff hit this fiscal year, while seeking about $150 million in refunds tied to invalidated IEEPA tariffs.

Despite cost pressures, P&G posted 7% sales growth and said product innovation helped lift volumes in key categories, though executives warned that inflation and higher fuel costs are putting more strain on consumers.

U.S. retail sales rose 1.7% in March to $752.1 billion, driven largely by a 15.5% surge in gasoline sales as higher fuel prices inflated spending at the pump. Excluding gas and autos, sales rose 0.6% year over year, while e-commerce sales climbed 10.1% year over year, pointing to resilience in consumer demand.

Higher gas prices may also be nudging more spending online, with nonstore retail posting solid gains, while categories such as department stores, grocery, and health and personal care also advanced. But analysts cautioned that much of the headline strength may reflect price-driven distortion rather than stronger underlying demand.

Researchers say the bigger question is whether rising fuel costs begin to pressure broader spending, especially as middle-income consumers show signs of pulling back. That is raising concerns that temporary sales strength could give way to a more challenging retail environment.

UPS has imposed a temporary $ 0.23-per-pound surge fee on a broad range of U.S. import and export shipments, while cargo moving from China and Hong Kong to the U.S. faces a higher $ 0.32-per-pound charge. The fees took effect on April 19 and apply until further notice.

The surcharge applies to seven international services and is in addition to fuel surcharges, adding to shipping costs as carriers contend with rising oil prices and broader logistics disruptions. Higher emergency fees of $1.34 to $1.50 per pound also remain in place on some Middle East routes.

Since the conflict began on Feb. 28, UPS has expanded emergency surcharges across multiple trade lanes, including a $ 0.64-per-pound fee on shipments to 15 Middle East countries and a $ 0.29-per-pound surcharge on exports to Israel. Meanwhile, FedEx has introduced similar demand surcharges of $0.50 to $0.70 per pound on overlapping routes, underscoring rising pricing pressure across global parcel networks.

Sam's Club has launched one-hour delivery at roughly 600 U.S. stores, intensifying competition with Amazon and Costco as retailers race to win market share through faster fulfillment. The move builds on Sam’s growing e-commerce push, which generated $15 billion in online sales last year.

The service, powered through Walmart’s Spark driver network, offers delivery in as little as an hour with no minimum order size. The rollout follows Amazon’s own expansion of one-hour delivery in hundreds of U.S. communities.

Sam's Club said the one-hour service has been in development for more than six months, with planning underway for nearly a year, and the U.S. rollout builds on a model already used in China, where one-hour delivery is common. Sam’s says it has already completed 65,000 deliveries since early April, including everything from baby formula and pet medicine to rotisserie chicken and even café pizza.

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Freshly unsealed court filings in California allege Amazon pressured brands to raise prices on rival platforms, including Walmart, Home Depot, and Chewy, intensifying scrutiny over the company’s marketplace pricing practices. California’s attorney general argues that the conduct artificially inflated prices across online retail.

The filings cite more than 15 instances in which Amazon allegedly contacted suppliers about lower competitors' prices, with the case centering on claims that vendors raised prices elsewhere to avoid penalties or reduce visibility on Amazon. The lawsuit heads to trial in January 2027 and is one of several antitrust cases that could reshape Amazon’s retail model.

The claims are part of a 2022 lawsuit alleging Amazon used its market power to influence pricing across online retail. The case adds to mounting regulatory pressure on Amazon’s marketplace model and could intensify debate over how pricing power and platform control shape competition across e-commerce.

L'Oréal reported first-quarter sales of €12.15 billion, up 7.6% year over year and ahead of expectations, as the beauty giant outperformed in a tougher consumer environment. Shares jumped 8.2% following the results, while growth accelerated from 6% in the prior quarter, signaling renewed momentum.

Growth was led by Professional Products, where sales rose 13.1%, followed by Dermatological Beauty at 10.2%, while Luxe grew 5.6% and Consumer Products advanced 4.1%. Regionally, North America posted 7.6% growth, Europe rose 5.5%, and the SAPMENA-SSA region surged 15.4%, with double-digit e-commerce growth and strong fragrance, haircare, and skincare demand helping power performance.

The company said it gained market share globally despite tariff headwinds, geopolitical uncertainty, and rising competition from newer brands.

UPS-owned Happy Returns has expanded its U.S. network to 10,000 drop-off locations, adding 1,700 sites as retailers place greater focus on reverse-logistics efficiency. The company says the network is now more than three times the size of the next-largest competitor's.

The expansion, driven by partnerships with Annex Brands and PackageHub, now places 79% of the U.S. population within 5 miles of a return point, with more than a quarter of Americans within 1 mile.

The move comes as returns remain a growing challenge, with 19.3% of U.S. online order lines returned in 2025 and e-commerce return rates running 21% higher than overall retail returns.

Associated British Foods will spin off Primark, separating a retailer that contributes the majority of the group's adjusted earnings and operates more than 450 stores across 17 markets. The move follows a strategic review as AB Foods looks to unlock value and sharpen focus across two very different businesses.

The split comes as weakness in the group’s sugar business has weighed on performance, with pretax profit falling to £632 million in the latest half from £692 million a year earlier. After the separation, shareholders will hold stakes in both businesses, while Primark continues under CEO Eoin Tonge.

The separation was approved with backing from Wittington Investments, AB Foods’ largest shareholder, which will retain majority ownership in both Primark and the food business after the split.