Gap’s Stock Surges After Apparel Deal With Kanye West’s Yeezy

Under West’s creative direction, the Yeezy design studio will develop “Yeezy Gap” to “deliver modern, elevated basics for men, women and kids at accessible price points” and West’s design vision will extend to the line’s branding in Gap stores and across the company’s digital channels. 

Gap Inc. declined to disclose contract details but a spokesperson told Forbes that, “we intend for this to be a robust creative partnership with multi-season product development.”

A source familiar with the negotiations but not authorized to speak publicly revealed more, telling the New York Times that the 10-year deal starts this month with the option to renew after five years.

West will maintain sole ownership of the Yeezy brand which pulled in an estimated $1.3 billion in sales in 2019, and Gap Inc. maintains sole ownership of the Gap brand. 

Thursday, the company issued stock warrants, the right to purchase shares of stock at a set price, for up to 8,500,000 shares of its common stock, subject to adjustment, in connection with the deal set to vest based on agreed-upon net sales, an SEC filing showed.