Gap Inc. (San Francisco) said it is taking a $53 million write-off on its investment in Yeezy, a fashion line created controversial artist Ye (formerly Kanye West). That figure was disclosed in the specialty apparel company’s financial results for its third quarter ended Oct. 29, 2022.
Gap executives made no comment related to the charge in the news release on the results.
As reported previously, Ye experienced pushback for antisemitic sentiments he’d posted on social media and stated elsewhere in recent weeks. Just prior to that controversy, Ye canceled his contract with Gap over reported disagreements on a variety of issues.
As for its most recent results, Gap – which operates stores under its flagship brand, Old Navy, Banana Republic and Athleta – posted net sales of $4.04 billion, up 2 percent compared to last year. Comparable sales were up 1 percent year-over-year. Online sales increased 5 percent compared to last year and represented 39 percent of total net sales.
The retailer also reported operating income of $186 million; that figure includes a $83 million gain related to the sale of a distribution center in the U.K. and the previously mentioned $53 million in impairment charges for the Yeezy line.