This archive report was first published on 28 June 2020.
On June 26, 2020, Gap Inc. (GPS.N) announced a 10-year partnership with rapper and fashion designer Kanye West to create a Yeezy line of clothing, marking a significant milestone for the apparel retailer.
The Yeezy-Gap line, aimed at young shoppers, will offer items such as hoodies, basics, T-shirts, and joggers, set to appear in Gap stores and on Gap.com in 2021. West will retain sole ownership of the Yeezy brand.
Financial details of the deal were not disclosed, but Gap stated that Yeezy would receive royalties and potential equity based on sales results. Yeezy valued its brand at $2.9 billion.
As a teen, West worked at a Gap store in the Chicago area. Mark Breitbard, the Gap brand global head, described West as 'a creative visionary, building on the aesthetic and success of his Yeezy brand' with the new Gap line.
The news of the collaboration sent shares of Gap to their highest since early March, before the pandemic battered the industry. San Francisco-based Gap, which owns Banana Republic, Athleta, and Old Navy, was among non-essential retailers forced to temporarily close stores to curb the spread of coronavirus.
Gap operates nearly 2,800 stores in North America and has seen its stock fall over 40% so far this year. The company recently withdrew its full-year targets, suspended its dividend, and furloughed employees.
