Gap’s stock fell almost 6 % Monday following West’s feedback he made at a public occasion Sunday. Videos taken at the occasion present the rapper criticizing Hole and Adidas, another attire firm his Yeezy brand partnered with.
West noted he was not on both firm’s board. “That has to vary as we speak or I stroll away,” he stated.
Adidas declined to comment and Gap didn’t instantly respond to CNN Enterprise’ request for remark.
Hole, which has been struggling these days, announced a 10-year partnership with Yeezy final month for a brand new line of garments which are “trendy, elevated basics for males, ladies and youngsters at accessible worth points” due out subsequent yr. It’s unclear if he’s even allowed to walk away from the deal.
The preliminary announcement despatched Hole’s shares hovering almost 19 % on June 26. The inventory has lost half of these positive factors since then.
The Yeezy deal might give Hole a much-needed financial and artistic increase. Hole has been struggling: Sales plunged 43 % in the quarter that ended Might 2, but online sales for Might have been double what they have been a yr in the past.
Hole additionally didn’t pay lease in April due to the short-term closures. It stated cash-saving measures taken through the quarter left it with $1 billion in cash available as of Might 2, a bit more than it had a yr in the past.
West has had great success within the trend area. He turned the first non-athlete to launch a full collaboration with Nike for the original Air Yeezy sneakers in 2009, and the brand’s sneakers typically go for a number of hundred dollars. His major partnership with Adidas that began in 2013 earned him raves.