Kanye West and Gap have billion-dollar ambitions for Yeezy deal to match his lucrative Adidas footwear collaboration
- A collaboration with Kanye West can boost a company’s value, as Adidas and now Gap are proving
- The deal between Yeezy and Gap gave the company its biggest share value boost for 40 years when it was announced
Kanye West’s deal-making with two of the world’s largest outfitters is paying off for the musician-turned-entrepreneur after years mired in debt.
Yeezy, West’s sneaker and apparel business with Adidas and Gap, is valued at US$3.2 billion to US$4.7 billion by UBS Group, according to a private document reviewed by Bloomberg. The value of the new Gap tie-up, which will hit stores this summer, could be worth as much as US$970 million of that total, the bank estimated.
The bank document reveals the ambitions of an alliance that hopes to emulate the success of the Adidas partnership. West, who retains sole ownership and creative control of the Yeezy brand, signed a 10-year agreement last year to design and sell clothes for men, women and kids under the Yeezy Gap label. (The arrangement excludes footwear; Yeezy’s partnership with Adidas is in place until 2026).
Representatives for Adidas, Gap and Yeezy declined to comment on their business arrangements. UBS declined to comment on its analysis.
Gap executives have placed a lot of trust in West to help make them more relevant with younger shoppers. The San Francisco-based retailer, which also owns Old Navy, Banana Republic and Athleta, has been closing stores while putting money into e-commerce and activewear.