Kanye West's Yeezy Brand Forms Partnership with Gap for Exclusive "Yzy - Gap" Collaboration
Friday, June 26, 2020
Gap stock rises after announcement of 10 year partnership deal with Kanye West's Yeezy brand for exclusive “Yzy-Gap” collaboration, available early 2021.
Kanye West announces 10 year partnership contract with the Gap for new "Yeezy - Gap" collaboration -PIERRE SUU/GC IMAGES/GETTY
In a tweet on Friday (June 26) Kanye West shared a photo of clothing being taken out of a bag that says “developed by Yeezy and GAP.”
The 43-year-old West and his fashion company, Yeezy, have partnered with Gap Inc. for an exclusive 10 year deal to develop the "Yeezy-Gap" collection which will roll out in early 2021. The New York Times has reported that Yeezy will have the option to renew the Gap agreement after five years. The Yzy-Gap deal could earn West an estimated BILLION dollars annually.
West later announced via Twitter that he has hired Mowalola as Design Director for the YSY- Gap label:
Gap sales have dwindled in North America and globally as stores struggle to say open amid the onset of the coronavirus. The Gap Inc. (parent company to brands Old Navy, Anthropology, Banana Republic, and Athleta) reported entering the quarter in February carrying $1.7 billion in cash. CNBC has reported Gap shares to be up by more than 31% in trading by Friday. The announcement added more than $1.4 billion to Gap’s market cap, pushing to more than $5 billion. The company also skipped out on $115 million in rent for April payments, and was noted as continuing to negotiate with landlords.
The Gap has confirmed in their company statement that the Yeezy brand (which West solely owns) will receive royalties and equity as a part of the agreement. The fashion partnership is a full circle journey for West, who was once an employee of a Gap Store while in high school.
Under Kanye's creative direction, the collaboration will produce “modern, elevated basics for men, women and kids at accessible price points” to be sold both online and in store. The new collaboration is a game changer for the average consumer’s wallet who can’t afford Kanye’s high priced original Yeezy label collection.
“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,” Mark Breitbard, the company’s global head of a brand, said in a news release.