Are brands growing or trimming wholesale? What recent reports show

Which brands are expanding wholesale channels?

Nike Brand wholesale revenues reached 27.5 billion dollars in fiscal 2026, up from 25.9 billion dollars in fiscal 2025, whilst Nike Direct revenues fell to 17.7 billion dollars from 18.8 billion dollars. Wholesale revenue increased 6 per cent whilst Nike Direct sales dropped 6 per cent, reversing years of prioritising direct to consumer selling.

Nike has made the rebuilding of wholesale relationships a key priority in its Win Now action plan. Fiscal 2026 wholesale revenues grew 4 per cent, led by double digit growth in North America, and fourth quarter wholesale revenues rose 10 per cent in North America, whilst Nike and retail sales at Foot Locker turned positive together for the first time in four years.

Adidas wholesale revenues increased 12 per cent on a currency neutral basis in 2025, driven by strong sell through rates at retail partners and increased shelf space allocations. Wholesale revenue increased 8 per cent year on year in the first quarter of 2026, as the company adopted a cautious approach in Europe and North America against the backdrop of weaker consumer spending.

Steven Madden's wholesale accessories and apparel segment revenue reached 332.2 million dollars in the first half of 2026, a 17.1 per cent increase, primarily driven by the acquisition of Kurt Geiger and strong performance in the legacy branded business.

Why did sportswear brands reverse their DTC push?

A multiyear push to sell more directly to consumers weakened wholesale relationships, trained shoppers to wait for discounts and opened space for rivals like On and Hoka. Nike reported second quarter fiscal 2026 wholesale revenues of 7.5 billion dollars, up 8 per cent, whilst Nike Direct fell 8 per cent to 4.6 billion dollars.

As DTC companies face rising customer acquisition costs and increasing operational challenges in 2024, wholesale is becoming a crucial strategy for brands seeking growth and market positioning. It used to be fairly easy and cost effective for brands to find and convert new customers through Instagram and Google ads, but increased customer acquisition costs as well as the challenges of customers expecting free shipping and high return rates have made it harder and harder for DTC only brands to generate a positive ROI.

Nike is aiming to strike a better balance between DTC, with its higher margins, first party data and control over customer touchpoints, and wholesale partnerships, which expand reach and product availability. Over 40 per cent of DTC brands explore hybrid wholesale models.

Which luxury groups are trimming wholesale?

Kering wholesale revenue declined 9 per cent on a comparable basis in 2025, partly reflecting deliberate strategic rationalisation. Wholesale, down 2 per cent in the third quarter of 2025, remained under pressure as Gucci and Saint Laurent pursued tighter distribution control, bringing Kering closer to the selective wholesale models adopted by leading luxury competitors.

Sales in directly operated stores accounted for 76 per cent of Kering's global revenue in 2025, indicating the group's preference for controlled retail over wholesale distribution. Kering is expected to deepen its focus on product elevation, limit broad wholesale exposure and strengthen directly operated retail.

LVMH increasingly favours direct, controlled distribution through boutiques, e commerce and owned retail concepts such as Sephora and DFS, whilst still using selective wholesale or distributors where appropriate, especially in wines and spirits. LVMH's near total retail model gave it full control over consumer experience and pricing.

What do independent retailers say about wholesale?

Over the past five years, the percentage of total wholesale transaction volume on JOOR attributed to independent retailers dramatically increased from 47 per cent to 59 per cent, and the channel plays an even more critical role in EMEA and APAC, where the percentages are 74 per cent and 76 per cent respectively.

JOOR's latest market survey revealed that wholesale was brands' largest and most profitable channel of distribution. Specialty stores and independent boutiques have gained notable market share in recent years, and their international appeal looks set to continue into 2026.

Direct to consumer brands have recognised the challenges of a DTC only strategy, including high customer acquisition and operational costs, and the benefits of adopting a diversified distribution model, and 2025 is set to be the year that traditional DTC brands further expand their wholesale penetration as they confirm the positive role that wholesale can play in driving profitable growth.

How do wholesale and DTC margins compare?

Wholesale B2B gross margin ranges from 40 to 55 per cent, sold to retailers at wholesale price, typically 2 to 2.5 times landed cost, with lower per unit margin but no consumer acquisition cost, no per order fulfilment expense and bounded returns risk because retailers commit to the order. Healthy DTC brands achieve gross margins of 60 to 75 per cent.

Steven Madden's wholesale accessories and apparel gross profit reached 42.2 per cent of revenue in the first half of 2026, compared to 31.0 per cent in the prior year. G III Apparel's wholesale operations segment gross profit percentage was 43.6 per cent for the six months ended July 2026, positively impacted by price increases as well as a shift in product mix to owned brands.

PVH grew DTC 3 per cent in constant currency across both Calvin Klein and Tommy Hilfiger, whilst wholesale fell 6 per cent, a gap that signals where the pressure in that business sits. The divergence reflects different economics and consumer behaviour across channels.

What does this mean for brand strategy?

The data shows a bifurcation: sportswear and mass premium brands are rebuilding wholesale to regain reach and share inventory risk, whilst top luxury houses are tightening third party distribution to protect brand equity and pricing power. Neither approach is inherently superior; the optimal mix depends on brand positioning, category dynamics and margin structure.

The National Retail Federation forecasts US retail sales will grow 4.4 per cent in 2026 to 5.6 trillion dollars, and most of that still flows through retailers, with one approved SKU at a national chain reaching more shoppers in a week than many DTC campaigns manage in a year. Wholesale remains the dominant route to market in most apparel categories.

Brands that grew up DTC are adding wholesale, whilst brands that cut wholesale are now rebuilding it. a.k.a. Brands noted tougher wholesale comparisons, as Princess Polly and Petal and Pup launched across all Nordstrom stores in March 2025. The cycle suggests that omnichannel distribution, carefully managed to avoid conflict, delivers better economics than pure play strategies in either direction.

Researched and drafted with AI support, reviewed and released by the editorial team.

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