Shares in clothes retailer Gap jumped over 40% after the retailer said it will sell Kanye West’s Yeezy fashion label.
The rapper and designer is teaming with Gap on a new line of clothing for men, women and kids called Yeezy Gap. Products are expected to debut in stores and online next year, the company said in a statement.
The deal is a multiyear partnership, according to a Yeezy spokesperson. Mr West has been traveling to Gap’s San Francisco headquarters from his ranch in Wyoming to work on the line, which is still in its design phase, the spokesperson said. The line won’t include footwear, a market in which Yeezy already collaborates with Adidas.
Gap shares jumped as much as 42% in New York trading, erasing this year's sharp decline.
The arrangement will expose Mr West’s upscale brand to a broader market while letting Gap capitalise on Yeezy’s recent growth. Mark Breitbard, global head of the Gap brand, said in the statement that the new line would build on “the aesthetic and success” of the Yeezy brand.
Gap could use a lift as it grapples with a difficult turnaround effort. In January, it called off a plan to separate its Old Navy brand from the rest of the business. Last quarter, net sales fell 50% as it struggled to cope with prolonged store closures due to Covid-19. Bloomberg