Kanye West may be going through some challenges in his personal life, but his business empire seems to be thriving. Kanye’s sneaker and apparel deals with Adidas and Gap, respectively, are apparently valued in the multi-billions.
Financial firm UBS Group AG has valued Kanye’s sneaker and apparel deals between $3.2 and $4.7 billion, according to documents Bloomberg reportedly reviewed.
The hip-hop and fashion mogul is the sole owner of his Yeezy brand and retains creative control. However, he signed a 10-year deal to design and sell clothes under the Gap label, which sent the company’s stock soaring.
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Kanye’s sneakers have been selling out within one minute after dropping – and that’s not an exaggeration. “UBS, which prepared the document in February, said that the sneaker business was growing at a ‘staggering clip,’” Bloomberg reported.
“Sales for Yeezy’s Adidas sneakers remained resilient through the pandemic, growing 31% to nearly $1.7 billion in annual revenue last year and netting Yeezy $191 million in royalties, according to the document,” Bloomberg continued.
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The Yeezy and Gap collaboration is expected to produce $150 million in sales in 2022 and exceed 1 billion in 2023, according to UBS. Gap CEO Sonia Syngal said the deal has “big potential” and West is “very, very focused on this incredible opportunity.”
With the expected influx of income, Bloomberg valued West at $6.6. billion and many crowned him as the richest Black man in America. However, Forbes said the title is premature because many of the Yeezy sales haven’t occurred. Instead, Forbes estimates West to be worth nearly $2 billion. They estimate Robert F. Smith is still the richest Black man in the country.
Still, social media users lauded West for his latest accomplishment. “Everything Kanye West said he was going to do, he did it. No matter the obstacles, he did it. That will always be a respectable characteristic,” @thoughtfulbae tweeted.
“Kanye is NOT the richest Black person in America, but still … #Salute capitalism game well played, sorta,” @oldmanebro tweeted.