Corporate America is enjoying its heftiest profit rise in years, driven by a resilient consumer and tariff refunds. Major retailers like Target and J. M.

Smucker, along with Deere and Abercrombie & Fitch, have raised full-year financial estimates. Strong sales and earnings across the S&P 500 were fueled by red-hot AI spending, federal outlays, and significant tariff refunds. At Abercrombie & Fitch, $120 million in expected refunds bolstered outlook despite discount cuts.

Fitness-watch maker Garmin saw $21 million in refunds boost margins, while Dollar General reported a 3.5% increase in comparable sales. Even without one-time gains, S&P 500 earnings rose the most since late 2021. Tariff refunds are estimated to account for over 4% of third-quarter economic growth.

However, government data shows retail sales softening in July, and consumer confidence slipped in August as economic worries persist despite robust corporate results.