Kanye West is not allowing his high-profile divorce from Kim Kardashian to hinder his creativity when it comes to designing clothes for the new partner Gap (GPS).
“I spoke with Yeezy last night and he is very, very focused on this incredible opportunity – we are both very excited about this,” Gap CEO Sonia Syngal told analysts in a results conference call on Thursday night. The Yeezy line is yet to be launched in the first half of this year, said Syngal.
Syngal surprised almost everyone on June 26, 2020, when he announced a 10-year clothing contract with Kanye West. Gap’s stock exploded 42% with the news, as investors bought into the idea that West – whose Yeezy sneaker line essentially saved Adidas – would inject the much-needed life into a dying shopping apparel brand. Although details are scarce, it is expected that the line will include sweatshirts, basics, t-shirts and joggers.
Syngal’s comments may ease some investor concerns about the partnership.
Since the Gap deal was announced, West has had a series of public scratching moments. First, he declared that he was running for president in 2020. Then, he said that he would no longer run for president. He then became involved in a Twitter war over his well-being with wife Kim Kardashian and mother-in-law Kris Jenner.
More recently, the two announced that they would divorce.
The Yeezy line comes at a time when the Gap is trying to turn the corner after years of fighting.
In that sense, Gap has shown some progress in its most recent earnings results. Sales of comparable stores in the fourth quarter of Old Navy and Athleta increased by 7% and 26%, respectively. Same store sales for Gap and Banana Republic fell 6% and 22%, respectively.
The Gap predicted a return to growth in 2021. For the entire year, the Gap predicts that year-round sales will increase by a percentage from mid to high. Winnings are forecasts in the range of $ 1.20 to $ 1.35.
Gap shares were up 4% in Friday’s pre-market.
Brian Sozzi is a general editor and anchor on Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi is at LinkedIn.
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