Kanye West & Gap Ink 10 Year Deal
Gap announced Friday that it has partnered with Kanye West for the Yeezy Gap collection that will include items for men, women and children at affordable prices. West is signing a reported 10-year deal with Gap to produce a line of clothing called “Yeezy Gap.”
- The Yeezy Effect: Gap added $700+ million to its market cap as shares rose almost 19%.
- This is coming full circle for West. In his track ‘Spaceships,’ Kanye rapped about working in the Gap folding clothes and being a frustrated retail associate. Now he’s coming back to save Gap and their declining sales.
- Gap sales have dropped 43% in Q1. They’re getting sued by their landlord, Simon Property Group for not paying their rent during the pandemic.
- Gap stock closed Friday up 18.8%. The stock has lost more than 31% of its value over the past year while the S&P 500 index SPX, -2.42% is up 3.3%. Gap’s portfolio also includes the Banana Republic and Old Navy brands.
- Kanye has shown to have the midas touch. He’s a tastemaker who brings a gravitational effect. He has injected new life to product lines and innovated products with his past partnerships with Nike, Adidas, and Louis Vuitton.