Canada Goose is looking to expand its reach in Japan with a new partnership.
The luxury outerwear firm is forming a joint venture with Sazaby League Ltd, a Tokyo retailer celebrating its 50th anniversary this year.
Operating under the name Canada Goose Japan, the joint venture replaces the duos’s previous national distribution agreement in “one of the world’s largest and most influential luxury markets [that] has long been an important consumer market for Canada Goose,” said Dani Reiss, president and CEO the Toronto-based premium parka producer.
Canada Goose is looking to build up its direct-to-consumer business including online and stores and “significantly increase revenue and gross profit per unit.”
Reiss went on to say that Sazaby League’s “successful history building strong consumer brands in the market will help drive us forward.”
Canada Goose and Sazaby will equally share in the joint venture with a 50/50 split. The current distribution includes a Canada Goose retail store in Tokyo, a national e-commerce site and wholesale accounts nationwide. The parties expect the joint venture to generate total revenue in Fiscal 2023 of 60 million to 65 million Canadian dollars ($47.6 million to $51.6 million), or double the contribution from Fiscal 2022.
The outerwear firm expanded into footwear in November with an initial drop for men and women. That same month it was certificated by the Responsible Down Standard, which benchmarks sustainability and animal welfare criteria.
For the third quarter ended Jan. 2, Canada Goose’s net income grew 42 percent to 151.9 million Canadian dollars ($120.1 million), or 1.41 Canadian dollars per diluted share ($1.11) on a 23.6 percent revenue increase to 586.1 million Canadian dollars ($463.6 million).