Gap shares soared Friday after Kanye West shared a photo that touted his collaboration with the retailer.
Shares closed up 18.8% Friday at $12.07, but had been up as much as 40% earlier in the day. The move added more than $700 million to Gap’s market cap, pushing it to about $4.5 billion.
Gap and West are developing a clothing line for men, women and kids that will be sold in its stores and online. The retailer said in a news release that the items from his fashion brand, Yeezy, will be made up of “modern, elevated basics” sold at “accessible price points.” The new line will debut in 2021.
West is the sole owner of the Yeezy brand, Gap said in its press release.
The partnership is a ten-year agreement, a person familiar with the deal’s terms said. Gap did not disclose terms of the deal, but said Yeezy will receive royalties and may get equity based on how much it sells. Gap has issued Yeezy Supply warrants for up to 8.5 million shares depending on whether the brand meets certain sales targets, according to a filing with the Securities and Exchange Commission.
