Forbes estimates revenue for Kanye West's Yeezy sneaker line will top US $1.5 billion in 2019. Photo / Getty Images
Forbes estimates revenue for Kanye West's Yeezy sneaker line will top US $1.5 billion in 2019. Photo / Getty Images
Kanye West's sneaker empire is a billion-dollar enterprise, according to a new cover story on the rapper's business endeavours by Forbes magazine.
Revenue for the Yeezy sneaker line, now with Adidas, is set to top $1.5 billion in 2019, and West's pre-tax income over the past 12 months came in at $150 million, according to Forbes.
Since moving the Yeezy line from Nike to Adidas in 2013, West has struck what Forbes calls an "unprecedented deal" for 15 per cent royalty on wholesale, plus a marketing fee.
For comparison, Michael Jordan is thought to get royalties around 5 per cent on the Air Jordan line, which does annual sales of about $3 billion.
West describes his foot line as "the Lamborghini of shoes," a nod to the matte-black Lamborghini SUV he owns.
Kanye West is featured on the new cover of Forbes magazine, which chronicles his dramatic financial turnaround due in large part to his Yeezy shoe line. Photo / Forbes
Forbes reports that West appeared for its cover photoshoot not once but twice wearing a black hoodie and that he called the editor to share his concern that the piece would not focus enough on the religious influence on his business.
West's business fortunes mark a stunning reversal from just three years ago in late 2016, when he begged Mark Zuckerberg to invest $1 billion in his "ideas" and claimed to be $53 million in debt.
Soon after, he cancelled the latter half of a lucrative tour and checked himself into a Los Angeles hospital for more than a week with symptoms of sleep deprivation and temporary psychosis, only to emerge in a bizarre meeting with Donald Trump, then the president-elect, at Trump Tower.
Now he is spending his shoe fortune on special Belgian plaster floors for the Los Angeles mansion he shares with wife Kim Kardashian West and their four children, North, Saint, Chicago and Psalm, according to Forbes.
If scuffed, the plaster can reportedly only be repaired by an elite team of plaster experts flown in from Europe.
"The house was all him," Kardashian West told Forbes. "I've never seen anyone that pays such attention to detail."
In April Kardashian West allowed Vogue into the massive Hidden Hills mansion - which was designed by Axel Vervoordt and took years to complete - for its 73 questions interview.
"The house was all him," Kardashian West told Forbes. "I've never seen anyone that pays such attention to detail." Photo / Vogue
During her chat, the Keeping Up With The Kardashians star played with all three kids on a bed while West served as a babysitter in a very intimate look at their life.
Nearly every surface of the property is "a monastic shade of white," Vogue reported. The living room, which is incredibly sparse, shows off an unbleached Steinway.
She describes her home as "minimal monastery" and said it was inspired by Axel and West.
Kardashian West walked the Vogue staffer through the foyer and into a minimal bedroom featuring a white king-sized bed and a nightstand that had several books piled up.
There West was seen with North on his shoulders, Chicago playing with the musician and Saint near Kardashian West.
West spends his shoe fortune on special Belgian plaster floors for the Los Angeles mansion he shares with wife Kim Kardashian West and their four children. Photo / Vogue
West first debuted his Yeezy shoes in 2009, after sketching out his ideas on a plane where he happened to be seated next to the CEO of Nike.
"I am a product guy at my core," West told Forbes. "To make products that make people feel an immense amount of joy and solve issues and problems in their life, that's the problem-solving that I love to do."
Crucially, West maintained ownership over the Yeezy brand, allowing him to jump ship for Adidas when, he tells Forbes, Nike refused to pay royalties.
Forbes estimates West's net worth at US$240 million, but says that he is on track to someday be a billionaire.
Of course, part of West's fortune comes from his music, as he is one of the best-selling music artists of all time with more than 135 million records sold worldwide.
West is currently working on an album tentatively titled Yandhi, according to Forbes.
Kardashian West took to Instagram Stories on Tuesday to say how proud she is of her husband.
She wrote: "Kanye on the cover of Forbes! So incredibly proud of my husband! I watch every day how hard he works and how much of his heart and soul he puts into his business, every idea and product that he creates.
"It's of no surprise to anyone who works with or is close to Kanye that he has been able to turn millions of dollars in debt into a billion-dollar empire in only four years - 100 per cent on his own terms, while owning 100 per cent of his business."
"He inspires me every single day and I'm so happy he's finally getting the recognition and credit that he deserves."
