Canada Goose launches JV with Sazaby League for Japanese market expansion

Canada Goose (NYSE:GOOS) and longstanding partner Sazaby League entered into an agreement to create JV Canada Goose Japan, with plans to accelerate DTC expansion, including retail stores.
Effective April, existing distribution will be assumed by the JV wherein each partner will own 50%; current distribution includes a permanent Canada Goose retail store in Tokyo, a national e-Commerce site, as well as wholesale points of distribution across the country.
This agreement will replace an exclusive national distributor arrangement between the two companies.
The new operating model is expected to significantly increase revenue and gross profit per unit from the existing business.
Canada Goose Japan is also expected to generate C$60M - C$65M in FY23 total revenue, almost double the contribution from this market in FY22.