Danish Brand Les Deux Posts 13% Revenue Growth By Adding Physical Stores While Competitors Close Them

Les Deux reported a 13 percent year-over-year revenue increase in 2025 while expanding its physical retail footprint, according to WWD. The Danish menswear brand opened new brick-and-mortar stores and increased wholesale distribution at the same moment much of direct-to-consumer apparel retreated from physical channels.

The brand added stores in key European cities while simultaneously growing its wholesale presence in premium department stores and specialty retailers. This dual expansion — owned retail plus third-party doors — created compounding discovery: shoppers who first encountered the brand in a wholesale door later sought out flagship stores, and vice versa. According to WWD, the physical expansion drove measurable top-line growth across both channels.

The mechanism works because physical stores solve the apparel fit problem that digital cannot. Menswear sells on shoulder width, inseam, and drape — variables a size chart describes poorly. A customer who tries on a jacket in-store converts at 3-5 times the rate of a web browser, according to industry benchmarks. Les Deux captured that conversion lift, then retained the customer for future online purchases once fit was established. The wholesale channel amplified this: each department store door functioned as a sampling station, building brand awareness in markets where Les Deux had no owned presence. The customer acquired in wholesale migrated to direct channels for repeat purchases, improving lifetime value without the customer acquisition cost of paid digital.

The timing mattered. Les Deux expanded physical retail during a period when landlords offered favorable lease terms to quality tenants. Retail vacancy rates in premium European shopping districts remained elevated post-pandemic, giving the brand negotiating leverage on rent and lease length. The company secured locations that would have been prohibitively expensive in 2019, turning a market dislocation into a geographic moat.

A small physical-product brand runs the same play on a compressed budget by starting with wholesale, not owned retail. Approach 10-15 specialty retailers in your category — boutiques, gift shops, or regional chains — and offer consignment or memo terms for an initial 90-day test. The retailer takes no inventory risk; you restock only what sells. This gets your product in front of customers in a physical environment at zero upfront cost beyond production. Use those 90 days to gather fit feedback, photograph the product on real customers in-store, and document which SKUs move fastest. Then convert the best-performing doors to standard wholesale terms with a 2.0-2.2x keystone margin. Once you have $15,000-$25,000 in monthly wholesale revenue, use that cash flow to fund a small owned retail presence — not a full store, but a 200-400 square foot shop-in-shop inside a complementary business (a coffee shop, coworking space, or design studio that shares your customer). Pay a percentage of sales instead of fixed rent. The shop-in-shop functions as a billboard and sampling station, driving customers to your website for the full catalog while keeping occupancy costs under 8 percent of revenue.

The broader pattern: physical retail is not dead, but the old model of high fixed rent plus full inventory risk is. Les Deux succeeded by expanding when lease economics favored tenants and by pairing owned stores with wholesale distribution to split customer acquisition across channels. The smallest brands copy this by using consignment wholesale as customer discovery, then adding micro-retail only after wholesale proves the market.