Kanye West Threatens to Quit Gap, Inc.
2022.09.02 23:17
Kanye West Threatens to Quit Gap, Inc. (GPS)
By Sam Boughedda
Gap Inc (NYSE:GPS) shares are somewhat unmoved Friday despite the news, first reported by fashion publication the Cut, that rapper, producer, and fashion designer Kanye West threatened to part ways with the company.
In a social media post, West said: “Gap held a meeting about me without me?”
He claimed in follow-up posts that Gap copied his designs and canceled a photo shoot with his kids in Japan without him knowing.
West has reportedly signed a 10-year deal with Gap, with his newest collection hitting stores last month.
If he were to step down, it would be a blow to Gap, which saw CEO Sonia Syngal step down in July. The company has had to apply significant markdowns as it attempts to clear bloated inventories.
The company’s second-quarter results revealed an 8% year-over-year decline in net sales and a 10% decline in comparable sales.
“We are taking actions to better optimize profitability and cash flow in the near term, reducing operating costs as well as impairing unproductive inventory. While our elevated inventory and pressured margins are current realities against unsettled market conditions, they do not define our ability to capitalize on Gap Inc.’s strengths to win,” said Gap’s interim Executive Chairman and CEO Bob Martin, following the earnings release.
Gap shares are down over 64% in the last 12 months.
