Gap bet its revival on Kanye — the 10-year Yeezy deal died in 28 months

On 26 June 2020 Gap signed a ten-year partnership with Kanye West's Yeezy: a Yeezy Gap line of 'modern, elevated basics' under West's creative direction, sold in Gap stores and online. Yeezy got royalties plus warrants for up to 8.5 million shares — a two percent stake worth over $100 million at the time — tied to sales targets. Shares rose as much as 40 percent intraday and closed up 18.8 percent, adding over $700 million in market value. For a chain whose flagship brand had shrunk for years, this was the revival story; Wells Fargo forecast $1 billion in first-year sales.

The hype delivered. The first piece, a blue zipperless puffer jacket in recycled nylon, sold out instantly in June 2021. The Perfect Hoodie, released that September, set a company record for online sales of a single item in one day, and 70 percent of its buyers were new to Gap. In February 2022 the Yeezy Gap Engineered by Balenciaga line sold out within hours. Two years in, the collaboration was the only thing at Gap generating headlines, queues and new customers.

Then the partner started leaving. In August 2022 Yeezy gave Gap 30 days to cure alleged breaches — no dedicated Yeezy Gap stores, delayed distribution. On 12 September West said it was 'time for me to go it alone'; on 15 September Yeezy formally terminated the deal, and Gap shares fell nearly 4 percent. Gap said it would wind the partnership down but keep selling through its product pipeline, including planned fall releases and a holiday collection. Weeks later, after West's antisemitic remarks, Gap's own statement said the former partner's 'recent remarks and behavior further underscore why.'

On 25 October 2022 Gap announced it would remove all Yeezy Gap product from stores and had shut down YeezyGap.com, reversing its plan to sell stock into the first half of 2023. Adidas cut ties with West the same day, and Foot Locker pulled Yeezy from its shelves. The day it stripped its stores, shares rose 2.5 percent — the market had priced the ending in September. The leftovers resurfaced in February 2024 — West sold unsold items for $20 each on his own site. The revival bet that opened with a 40 percent pop ended with Gap eating its own stock.