Jun 29, 2020
Gap partners with Kanye West for Yeezy Gap line
Jun 29, 2020
Gap has struck a 10-year deal with Kanye West to create the Yeezy Gap line, bringing a more accessibly-priced version of West's famed brand to consumers around the world.
Set to launch in Gap stores and on gap.com in 2021, the Yeezy Gap line will offer a range of "modern, elevated basics for men, women and kids" designed by West and the Yeezy design studio, the partners said.
Nigerian-British designer Mowalola Ogunlesi revealed that she will be the new line's design director via Instagram. According to Gap and Yeezy, the line's "creative process [is] just getting underway," and "West’s design vision will extend to unique Yeezy Gap expressions in Gap stores and digital channels over time."
“We are excited to welcome Kanye back to the Gap family as a creative visionary, building on the aesthetic and success of his Yeezy brand and together defining a next-level retail partnership,” said Mark Breitbard, global head of the Gap brand.
West, who was valued at $2.9 billion as of April 2020, will maintain sole ownership of the Yeezy brand, and Gap Inc. will maintain sole ownership of Gap brand. Through the partnership, Yeezy will receive royalties and potential equity based on sales achievement, Gap said.
Following the line's announcement, Gap Inc. shares surged by as much as 42% on Friday, adding over $1 billion to Gap's market capitalization while the company still reckons with its stock being down by over 20% this year.
If the pull of West's name and brand end up drawing in customers, the Yeezy Gap line could help Gap Inc. begin to recover from a major sales slump. Earlier this month, the San Francisco-based company reported a massive first-quarter loss of $932 million attributed to Covid-19-related store closings and restrictions, causing the company's shares to drop by about 5%.
The company suffered a net loss of $932 million for the three months ended May 2, compared with a profit of $227 million year-prior, while net sales fell 43% to $2.11 billion from $3.71 billion.
The company's losses also included a $484 million writedown on store and operating lease assets and an inventory impairment charge of $235 million.
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