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Leather's supposed to cling tight and show off your assets, but it's not supposed to be so tight you're in pain or you feel like you've become one with the coat. A little room goes a long way toward helping you look and feel smoking hot in that coat, so don't be intimidated: get your sex appeal back by stretching the too-snug coat til it's comfortable!
Wear in your coat around the house if it's just a tad too snug. Leather stretches naturally, and giving your new coat a little warm-up before you take it to the streets can help expand the fibers.
Condition tight leather with special leather conditioner, which returns brittle leather back to its supple texture. Place a bit of leather conditioner on a tack cloth, then rub your coat with this. Concentrate on tight or brittle areas, from the shoulders to the arms -- wherever you need the fabric to give a bit. Once you've conditioned, give the coat some breathing room for a couple days, then try it on. Your leather coat will feel softer and have more natural give, allowing you better movement.
Get wet and wild to give your coat a good stretch. Fill a basin with warm water, then immerse your coat. Let the coat get wet for 10 minutes,and channel your grandma to knead that fabric while it's under water like you're making bread dough. Focus on tight spots. Wring out the jacket after 10 minutes, towel it to remove some water, then put it on. While wearing wet leather sounds about as fun as giving a cat a bath, this helps the coat mold to you and is the best way to stretch a too-small piece. Take off the coat when it's somewhat dry and you can't stand the wetness anymore, and let it dry at room temp.
Take the jacket to a professional leather shop if you've tried stretching by hand and need a little help. Their pro machinery and expertise get results without sweat and tears.