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Gap and Kanye West sign 10-year deal to create line of Yeezy apparel

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Gap Inc has entered into a 10-year deal with rapper and fashion designer Kanye West to create a Yeezy line of clothing, both parties said on Friday, sending shares of the apparel retailer soaring 42%.

Aimed at young shoppers, the Yeezy-Gap line, which will offer items such as hoodies, basics, T-shirts and joggers, is expected to appear in Gap stores and on Gap.com in 2021, the two parties said. West will keep sole ownership of the Yeezy brand.

Financial details were not disclosed, but Gap said Yeezy would receive royalties and potential equity based on sales results. Yeezy said the brand is valued at $2.9 billion.

Gap Inc has entered into a 10-year deal with rapper and fashion designer Kanye West to create a Yeezy line of clothing, both parties said on Friday, sending shares of the apparel retailer soaring 42%.

Aimed at young shoppers, the Yeezy-Gap line, which will offer items such as hoodies, basics, T-shirts and joggers, is expected to appear in Gap stores and on Gap.com in 2021, the two parties said. West will keep sole ownership of the Yeezy brand.

Financial details were not disclosed, but Gap said Yeezy would receive royalties and potential equity based on sales results. Yeezy said the brand is valued at $2.9 billion.

The news of the collaboration, announced through the rapper’s Twitter account, got the brands trending on the social media platform and sent shares of Gap to its highest since early March before the pandemic battered the industry.

San Francisco-based Gap, which owns Banana Republic, Athleta and Old Navy, was among non-essential retailers forced to temporarily close stores to curb the spread of coronavirus.

Gap, which operates nearly 2,800 stores in North America, recently withdrew its full-year targets, suspended its dividend, furloughed employees and has seen its stock fall over 40% so far this year.

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