Kanye West isn’t letting his high-profile divorce from Kim Kardashian hamper his creative juices when it comes to designing apparel for new partner, The Gap. “I spoke to Yeezy last night and he’s very, very focused on this incredible opportunity—we’re both very excited about it,” Gap CEO Sonia Syngal told analysts on an earnings conference call Thursday evening. The Yeezy line is still expected to launch in the first half of this year, Syngal said. The comments from Syngal may ease some investor concerns on the partnership.
Syngal stunned just about everyone on June 26, 2020 when she announced a 10-year apparel deal with Kanye West. Shares of Gap exploded 42% on the news as investors bought into the idea that West — whose Yeezy line of sneakers essentially saved Adidas —would inject badly needed life into a dying mall apparel brand. While details have been scant, the line is expected to include hoodies, basics, T-shirts and joggers.
Since the Gap deal was announced, West has had a series of head-scratching public moments. First, he declared he was running for president in 2020. Then, he said he would no longer run for president. He then engaged in a Twitter war about his well-being with wife Kim Kardashian and mother-in-law Kris Jenner. More recently, the two announced they would be getting a divorce.
The Yeezy line comes as Gap is trying to turn the corner after years of struggles. To that end, Gap showed some progress in its latest earnings results. Fourth quarter comparable-store sales at Old Navy and Athleta rose 7% and 26%, respectively. Same-store sales at Gap and Banana Republic fell 6% and and 22%, respectively. Gap forecast a return to growth in 2021. For the full year, Gap sees full year sales increasing by a mid- to high- teens percentage. Earnings are forecasts in a range of $1.20 to $1.35. And, Gap shares rose 4% in pre-market trading on Friday.
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