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Gap shares soared Friday morning after Kanye West shared a photo that touted a collaboration with the retailer.
Shares were up by about 17% in premarket trading. The move added more than $500 million to Gap’s market cap of $3.8 billion.
Gap said West is developing a fashion 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 at an “accessible price point.”
The retailer said the Yeezy Gap line will debut in 2021.
Gap did not disclose terms of the deal, but said Yeezy will receive royalties and may receive equity depending on its sales. West is the sole owner of the fashion brand.
The fashion partnership may seem like an unlikely one for some industry-watchers, but may have a familiar ring for West’s music fans. He referred to his time working at a Gap store as a teen in the lyrics of “Spaceship,” on his 2004 College Dropout album.
Gap said West’s previous experience has come full circle.
“We are excited to welcome Kanye back to the Gap family as a creative visionary, building on the aesthetic and success of his YEEZY brand and together defining a next-level retail partnership,” Mark Breitbard, the company’s global head of brand, said in a news release.
In a tweet on Friday, West included a photo of clothing being taken out of bag that says “developed by Yeezy and GAP.” He included the hashtag #WESTDAYEVER. The tweet was previously reported by Complex.
Gap has been struggling to resonate with customers and the coronavirus pandemic dealt it another blow.
This story is developing and will be updated.
—CNBC’s Amelia Lucas contributed to this report.