Gospel rapper and fashion entrepreneur, Kanye West has made history for himself as he becomes the richest Black man in US history with a whooping $6.6 billion.
According to a private document confirmed by Billboard, Yeezy – West’s sneaker and apparel business with both Adidas and Gap – has been valued at between $3.2 billion to $4.7 billion by the Swiss Investment Bank, UBS Group.
As much as $970 million of that total comes from West’s new clothing line for Gap (under the Yeezy Gap label) that the retailer has slated for release by July, part of a 10-year agreement the parties signed in June last year.
The document further reveals that Gap, an ailing brand whose partnership with West represents a play for younger consumers, expects its Yeezy line to break $150 million in sales in its first full year in 2022 and envisions it surpassing a billion dollars in revenue within eight years, or even as soon as 2023 on the upside.
West stands to profit handsomely in any event, as he retains sole ownership and creative control of the Yeezy brand and earns royalties on sales under the deal, with the rate increasing as the business grows.
He will as well receive stock warrants when the collection hits sales targets, with the highest set at $700 million.
West’s longstanding deal with Adidas has been the most lucrative part of his business endeavors to date, with Yeezy sneakers continuing to fly off of shelves.
Documents say the brand grew 31% to nearly $1.7 billion in annual revenue last year, netting Yeezy royalties of $191 million.
West has been in business with the company since 2013 and the current deal will run through 2026.
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