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by RepSpark Team on July 29, 2025
As we reflect on the second quarter of 2025, it's clear that this period had a common through line: uncertainty.
Brands saw what felt like daily changes to tariffs, which made planning for the year that much more difficult.
From tariff concerns to sourcing challenges, let's look back at what defined this quarter and how successful brands navigated through these complexities.
What Drove Wholesale in Q2 2025?
1. Strategic Pauses and Operational Realignment
Brands across the spectrum reevaluated internal allocation. Brands looked closely at factors like their marketing budgets, athlete endorsements, technology investments, and warehousing operations. While many paused projects briefly, established brands with diversified sourcing continued full‑speed ahead.
2. Tariff Pressures and Sourcing Diversification
With tariffs still in play, prominent brands who had diversified sourcing beyond China were better positioned. They sustained momentum while those still over‑invested in prior supply chains navigated more challenges.
3. Continued Innovation
Consumers demand newness. Whether slimming product lines or deferring internal initiatives, brands that continued pushing innovation remained more competitive.
Navigating Through Tariffs and Uncertainty
The common cause for much of the uncertainty last quarter, as we already brought up, were tariffs.
Diversification became a key theme. Mature brands looked for alternatives to their reliance on China, which was a region that accounted for the brunt of the tariff-related costs.
Operational efficiency became a critical focus during this quarter. Brands took a hard look at their internal operations, and scrutinized every aspect from marketing expenditures and athlete sponsorships to software investments and warehousing solutions.
The point of this self evaluation? Optimizing spend to become more efficient across all levels. When costs started rising, the only real place to help curb those unavoidable costs was within existing systems.
The Importance of Continuing Innovation
Despite the initial pause or slowdown that many brands experienced due to uncertainty, major players bounced back, like Levi’s that is expecting an increase to revenue by the end of the year thanks to the large order it placed for its inventory before tariff costs would affect the brand.
This period has somewhat resembled the early days of the COVID-19 pandemic, where brands that halted operations found themselves significantly behind once recovery began.
In a recent webinar hosted by Shop Eat Surf, industry expert Matt Powell emphasized the necessity of maintaining a strong "innovation engine."
Even during times of uncertainty, it’s important to continue to prioritize innovation. Consumers continue to seek novelty and differentiation and brands that offer fresh, innovative products will be the ones that will continue to drive sales and capture buyer attention when some of these outside factors eventually level off.
Full Speed Ahead
As we move into the third quarter of 2025, brands appear energized and focused on growth. The insights gained during this year’s second quarter have armed them with clearer strategies and reinforced the importance of agility and innovation.
While Q2 2025 presented significant challenges, it also offered an opportunity for wholesale brands to strengthen their operational foundations and reaffirm their commitment to innovation.
As the market stabilizes, brands that have maintained momentum and strategic focus are best equipped to thrive.
