# Knix hits $1B DTC, then opens 350 Target doors with 90% wholesale growth YoY

*The intimates brand proved channel demand online before negotiating shelf space at scale.*

By **Jenny Huang Goodman MPA MSc MHSA, Principal** — The Stash Edge, Hako Shikin LLC.
Published 2026-06-22.

Canonical: https://www.pops4.com/stash/articles/knix-2026-06-22t18-1
Subject: Knix
Tags: wholesale, dtc, retail expansion, channel strategy, target, intimates

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Knix, a 13-year-old direct-to-consumer intimates brand, surpassed **$1 billion** in cumulative DTC sales and is now opening in **350 Target** locations across North America, according to Glossy. The company reported a **90% year-over-year increase** in wholesale sales in North America, marking its largest retail expansion to date.

Knix built its billion-dollar DTC foundation before approaching big-box retail. The brand spent over a decade refining product-market fit, acquiring customers online, and collecting zero-party data on sizing, preferences, and repeat behavior. Only after establishing that base did it enter wholesale conversations with Target. The retailer saw proof of demand in Knix's customer file and DTC velocity, reducing the risk of allocating shelf space to an unproven SKU.

The mechanism is channel sequencing. A physical-product brand that scales DTC first arrives at the wholesale table with leverage: documented sell-through rates, known customer acquisition costs, and a repeatable playbook for moving inventory. Target does not need to guess whether Knix will turn. The brand already demonstrated it online, at margin, with attribution. Wholesale becomes a distribution expansion, not a market test.

This approach also protects margin. Knix negotiated from strength, likely securing better terms on placement, co-op marketing, and return policies than a startup pitching a retailer cold. The DTC channel continues to capture full retail price and first-party data, while the wholesale channel adds volume and discovery at a planned margin concession. The brand controls both.

A small physical-product brand runs the same play in stages. First, prove the product moves online. Build to **500 to 1,000 DTC orders per month** at a sustainable contribution margin, then document it. Export your Shopify sales data, calculate repeat rate, and note average order value. That file is your pitch deck. Second, approach regional or independent retailers with traction proof. A local gift shop, a specialty chain, or a single Target buyer testing new vendors will allocate space to a brand that shows it can move product elsewhere. Offer them your top three SKUs, not your full catalog. Third, negotiate terms that preserve your DTC margin. Ask for net-60 payment terms, no exclusivity, and the right to pull SKUs if sell-through falls below an agreed threshold. The regional door is a test, not a commitment.

If the test works, scale it. Knix did not open in 350 Targets on day one. It likely piloted in a smaller set, proved velocity, and earned the expansion. A small brand does the same: ten doors, then fifty, then a buyer conversation about rollout. The DTC channel funds the working capital for wholesale inventory, and the wholesale channel drives awareness that lowers DTC acquisition cost. Each channel makes the other more efficient.

The broader pattern is proof before scale. Wholesale without DTC traction is a gamble on someone else's shelf space. DTC without wholesale is a ceiling on distribution. Knix threaded both, and the $1 billion in DTC sales bought it the credibility to negotiate 350 doors at once.

## The takeaway

Build DTC proof, then pitch wholesale with your own sell-through data as the deck.

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## Publisher

**Hako Shikin LLC** — Virginia Beach, Virginia. Founded 1997. ASI 217876 · DUNS 18-204-6339.
Principal and author: **Jenny Huang Goodman MPA MSc MHSA**.

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