Les Deux hit 13% revenue growth in 2025 by opening stores and expanding wholesale in the same year

Les Deux reported 13% year-over-year revenue growth in 2025 while simultaneously expanding physical retail locations and wholesale partnerships, according to WWD. The Danish menswear brand ran both channels at once rather than sequencing them, a pattern now visible across three physical-product apparel companies: Les Deux, Bylt, and Solbari.

Bylt announced 7 new brick-and-mortar stores for this year alongside a wholesale partnership with Bloomingdale's, per Retail TouchPoints. Solbari, a UV-protective clothing brand, hired a dedicated Head of Sales to launch U.S. wholesale distribution, reported Yahoo Finance. Each brand deployed retail and wholesale in the same fiscal period, not as successive phases.

The mechanism is customer acquisition cost arbitrage across channels. Wholesale delivers brand discovery at the retailer's expense: Bloomingdale's pays for the foot traffic, email list, and shelf presence. The apparel brand captures that conversion with zero ad spend. Physical stores then function as high-intent showrooms for customers who found the brand elsewhere. Les Deux's 13% growth reflects the compounding effect—wholesale seeds awareness, stores convert it, and the brand retains the margin on direct purchases that follow.

Retail stores also derisk wholesale. A buyer at a department store wants proof the brand can handle logistics, returns, and customer service at scale. Operating stores provides that proof on demand. Bylt's Bloomingdale's partnership followed store openings, not the reverse. Solbari's wholesale launch came after demonstrating operational competence through its own retail channels. The store network signals infrastructure that wholesale partners can trust.

The dual deployment also hedges margin pressure. Wholesale typically commands 40-50% wholesale price relative to direct retail, but it moves volume without marketing spend. Stores preserve full retail margin but carry occupancy costs. Running both channels simultaneously lets the brand optimize cash flow: wholesale funds inventory turns, stores capture margin on customers who prefer to touch the product. Les Deux's revenue growth reflects both levers pulled at once.

A small physical-product brand can run the same play on modest capital. Start with one retail location in a market where you already have wholesale interest—approach the buyer at a local boutique or specialty retailer and propose consignment terms: they pay only for what sells, you restock weekly. Use that single wholesale placement to generate customer data: which SKUs move, what questions staff field, how long customers deliberate. Open your first retail store in the same zip code 90 days later, positioned as the flagship for the product the boutique is already selling. The wholesale placement primes the market, the store harvests it.

For larger operators, sequence the wholesale and retail by quarter, not by year. Secure 3-5 wholesale doors in a metro area in Q1, then open a store in that same metro in Q3. Use wholesale sales data to select the store location: find the zip codes generating the highest wholesale revenue and lease space there. Approach anchor retailers like Bloomingdale's or Nordstrom with proof from the smaller wholesale doors: show them 6 months of turn data from local boutiques, then offer them exclusive SKUs or colorways. The retail store then becomes the local showroom for the wholesale assortment, driving customers into the partner's doors and yours.

The pattern extends beyond apparel. Any physical product with $80+ unit economics can deploy this: skincare, home goods, premium pet products, outdoor gear. The requirement is margin sufficient to absorb wholesale's haircut while still funding retail occupancy. Les Deux demonstrated the growth result; Bylt and Solbari confirmed the model is portable across apparel categories. The play is not DTC first, then wholesale later—it is both channels launched in parallel, funding each other's customer acquisition.