Canada Goose Holdings Inc. (“Canada Goose” or the “Company”) and long-time partner Sazaby League Ltd. (“Sazaby League”) have entered into an agreement to create a joint venture, Canada Goose Japan, with plans to accelerate the expansion of DTC, including stores.
The agreement will replace the exclusive national distributor arrangement between Sazaby League and Canada Goose. Beginning in April, existing distribution will be assumed by the joint venture, with each partner owning a 50 percent stake. Current distribution includes a permanent Canada Goose retail store in Tokyo, a national e-commerce website and wholesale distribution locations across the country. The new operating model is expected to significantly increase revenue and gross profit per unit for the existing business. Canada Goose Japan is also expected to generate total revenues of C$60 million to C$65 million in fiscal 2023, approximately double the contribution of that market in fiscal 2022.
“Japan is one of the largest and most influential luxury markets in the world and has long been an important consumer market for Canada Goose,” said Dani Reiss, president and chief executive officer of Canada Goose. “This new agreement sets the stage for the accelerated growth of our DTC and wholesale business in Japan. We are excited to expand our existing business with Sazaby League and know that their history of success in building strong consumer brands in the market will help drive us forward.
“We are proud to partner with Canada Goose and be a part of their continued growth in Japan,” said Yoji Hirai, CEO of Canada Goose Japan. “Canada Goose is a global performance luxury lifestyle brand known for its unparalleled products and industry-leading commitment to sustainability.