Gap stock slumps after reports that Kanye West has ended the relationship

Shares of Gap Inc. GPS, -3.05% slumped 3.1% toward a seven-week low Thursday, after reports that Kanye West ended his relationship with the apparel retailer. The Wall Street Journal reported, citing a letter West sent to Gap, that the rapper and designer’s Yeezy LLC was ending the relationship because Gap breached the agreement by not releasing apparel and opening retail stores as planned. The relationship was announced in June 2020, with the Yeezy Gap collection including items for men, women and children at affordable prices. The WSJ report said Gap will still be able to sell existing Yeezy Gap products before it ceases to use the brand name. Gap’s stock, which is on track to close at the lowest price since July 27, has plunged 48.7% year to date, while the SPDR S&P Retail ETF XRT, +1.14% has tumbled 29.6% and the S&P 500 SPX, -0.30% has dropped 17.9%.