The “Runaway” rapper — whose wife of seven years Kim
Kardashian filed for divorce last month after months of headline-grabbing
turbulence — has seen his Yeezy shoe and streetwear empire surge in value,
making him a multibillionaire, according Forbes
Now worth a whopping $6.6 billion, producer, rapper, and
fashion mogul Kanye West is the richest African American in the United States,
according to Forbes Magazine.
Yeezy’s Adidas sneaker venture — whose sales have
skyrocketed during the pandemic amid torrid demand for its dressy-yet-comfy
footwear — is now worth as much as $3.7 billion based on the valuations of
similar streetwear brands including Supreme, according to an analysis by the
investment bank UBS.
That’s not including a valuation of nearly $1 billion for
Yeezy’s upcoming Gap apparel line, which is slated to launch this summer. Both
ventures are wholly owned by West, according to people close to the company.
Combine those ventures eye-popping figures with West’s share
of his and Kim Kardashian’s Skims underwear line — estimated at $1.7 billion —
and West’s net worth appears to have vaulted past the $6 billion mark, sources
close to the companies say. The rapper also has a music catalog worth an
estimated $110 million and cash and stock worth $122 million, according to
Bloomberg, which first broke the news about West’s assets on Wednesday.
A net worth as high as $6.6 billion would land West in
rarified company — with a fortune that’s nipping at the heels of Robert F.
Smith, the private-equity baron who is the richest African American with a
fortune of more than $7 billion, according to the Bloomberg Billionaire’s
Index.
Last year at this time, West claimed that his net worth was
more than $3 billion, which is more than billionaires such as Oprah Winfrey,
but that report wasn’t accurate. Forbes reported that his net worth at the time
was $1.3 billion, but to that, West said, “It’s not a billion. It’s $3.3
billion since no one at Forbes knows how to count.”
In 2019, Forbes estimated West’s net worth at just $240
million, making him the fourth richest hip hop artist behind Diddy, at $740
million, and Dr. Dre, at $800 million. Rapper Jay-Z was ranked No. 1 at $1
billion. Today, Forbes pegs Jay-Z’s net worth at $1.4 billion.
West rapid ascent is the result of Yeezy’s torrid growth.
Sales for Yeezy’s Adidas sneakers grew 31 percent to nearly $1.7 billion in
annual revenue last year, netting Yeezy $191 million in royalties, the document
said, adding that by the end of Adidas’ Yeezy deal, revenue is expected to
reach $3.1 billion.
“With an obsessive attention to product detail paired with a
disciplined approach to volume management, there exists a significant runway for
continued growth within this partnership and the footwear segment,” the UBS
report said.
Indeed, according to the document dated Feb. 18, Gap is
looking to emulate the success of Yeezy’s deal with Adidas.
West, who retains sole ownership and creative control of
Yeezy, signed a 10-year agreement last year to design and sell clothes for men,
women and kids under the Yeezy Gap label. The arrangement, however, excludes
footwear, as Yeezy’s partnership with Adidas remains in place until 2026.
The new figures signal that Gap anticipates its Yeezy line,
which it plans to launch by July, to hit $172 million in sales in its first
full year in 2022, the document said. Gap envisions it becoming a
billion-dollar revenue brand within eight years, with an upside case of sales
exceeding $1 billion as soon as 2023, according to UBS.
Reps for Adidas, Gap, Yeezy and UBS did not comment.
Despite his high-profile divorce with Kim Kardashian, the
rapper is “very, very focused” on the Gap apparel collection, Gap CEO Sonia Syngal
said earlier this moth.
The “Stronger” artist sent Gap’s stock price soaring in June
when he announced the deal with the clothing brand. But the 43-year-old
entertainer cast shadows on the tie-up when he launched his somewhat bizarre US
presidential campaign the following month, also saying at the time he would
“walk away” unless he got a seat on Gap’s board.
West followed that up with a September tweet noting that
he’s also not on the board of Adidas, which makes his Yeezy sneakers. “BLACK
BOARD SEATS MATTER,” West wrote.
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