Yahoo Finance Will Gap drop Kanye West?
One Gap insider says the apparel retailer is unlikely to cut ties with controversial music artist Kanye West despite recent concerns about his behavior.
“I believe they are [going to stick with Kanye],” retail analyst and JJK Research founder Janet Kloppenburg told Yahoo Finance’s The First Trade. Kloppenburg has covered Gap (GPS) for years as an analyst, and is seen on Wall Street as a true expert on the company.
“The apparel line, which covers men’s, women’s and children is not expected to launch until next year. My guess not before the second quarter. And it was an unusual event. I think a surprise to the Gap management as well, that’s my guess. I think that by the time the market and merchandising of this new product assortment launches, the elections will be long over and it will have quieted down,” Kloppenburg added.
A Gap spokesperson didn’t return Yahoo Finance’s request for comment on the status of the relationship.
Gap’s new CEO Sonia Syngal stunned just about everyone on June 26 when she announced a 10-year apparel deal with Kanye West. Shares of Gap exploded 42% on the news as investors bought into the idea that West — whose Yeezy line of sneakers essentially saved Adidas —would inject badly needed life into a dying mall apparel brand. The line is expected to include hoodies, basics, T-shirts and joggers — it’s slated to debut in 2021.
But since the Gap deal was announced, West has had a series of head-scratching public moments. First, he declared he was running for president. Then, he said he would no longer run for president. And now, West is locked in a Twitter war about his well-being with wife Kim Kardashian and mother-in-law Kris Jenner.
Some analysts speculate West could be more of a headache to Gap than it needs. But most agree with Kloppenburg that Gap will stick with West in an effort to save a once proud apparel brand. If West has proven anything with his Adidas deal, he could move a ton of cool-looking apparel.
Brian Sozzi is an editor-at-large and co-anchor of The First Trade at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
