Shares of apparel retailer Gap Inc. (GPS) - Get Gap, Inc. (GPS) Report rose Tuesday after it debuted the first item from its collaboration with YEEZY Apparel, the clothes brand started by rapper Kanye West.
The company's new recycled blue nylon jacket will retail for $200 and is the first product to be released from the 10-year collaboration deal between West and the Gap that was signed last year.
The company's stock was rising 2.4% to $32.09 Tuesday following the release. Last June, when the company first announced the partnership, Gap shares soared the most they had in at least 40 years.
"We’re approaching this launch with deep intention and we expect to share more with you in the next few months. It’s the number one question we get," Gap CEO Sonia Syngal said in a conference call last month, according to Bloomberg.
The company sees the partnership as having billion-dollar potential, according to bank documents prepared in February that were obtained by Bloomberg.
Last month, Gap reported fiscal first quarter earnings of 48 cents per share on revenue of $3.99 billion. Analysts were expecting a net loss of 5 cents per share on revenue of $3.43 billion.
Comparable-store sales rose 35% at Old Navy Global, 29% at Gap Global and 27% at Athleta from the year-earlier quarter. Same-store sales at Banana Republic dropped 4% year-on-year.
Gap shares are up nearly 60% year to date, compared to a 13% gain for the S&P 500, but the stock has been volatile since it released its earnings on May 28.