See, it has become very clear that this is the world of Kanye West and the rest of us just live in it. He recently signed a new deal with Gap and still has a deal with Adidas. Both of these deals increased his total wealth to $ 6.6 billion, making him America’s richest man. This is a surprising turn for a man who was drowning in debt a few years ago. West’s deals with Adidas and Gap are between $ 3.2 billion and $ 4.7 billion. His new deal with Gap is worth about $ 970 million and he will see Yeezy branded products hitting Gap store shelves this summer. Gap hopes to recreate the success it has had with Adidas. West is the sole owner of the brand. His deal with Gap is for 10 years designing clothes for men, women and children under the Yeezy Gap label. Their Adidas deal currently runs until 2026.
The Gap has suffered from a lack of relevance not only with younger shoppers in recent years, but also its older customer base has largely expanded beyond the retail chain. The company is closing retail stores through its Athleta brand and investing in e-commerce and active clothing. Gap’s latest quarterly earnings report showed that its struggle continues and shoppers, market share, and its sales are dropping dramatically. The collaboration with Kanye is seen as a way to connect the Gap brand with new life and bring a whole new set of customers to the store. As soon as the West deal was made public, Gap shares scored the highest in four decades.
Gap hopes to have its Yeezy line on sale in 2022 to break $ 150 million in sales during its first full year. The company could see that within eight years it could become a billion-dollar revenue generator, although sales growth in 2022 and 2023 could make it one billion. -Dollar brand too soon. The Gap will only have to see sales of Yeezy’s Adidas, which increased sales by 31% to 1.7 billion during the epidemic. West looked at $ 191 million in royalties at that figure.
West’s deal with Adidas is his biggest asset to date. Limited-edition sneaker drops are sold out almost every time. Overall the sneaker business is growing at a staggering rate. Nike expects the number for FY2021 to increase by about 13%, or year-over-year. The sneaker’s business has been particularly good for Kanye, who had $ 16 million in 2015 and $ 53 million in 2016. By 2018, West was bringing in more than $ 100 million in royalties from its deal with Adidas.