Gap Inc. Reports First Quarter Fiscal 2022 Results and Provides Updated Fiscal 2022 Outlook

WEBWIRE



Gap Inc. (NYSE: GPS), a portfolio of purpose-led, billion-dollar lifestyle brands including Old Navy, Gap, Banana Republic, and Athleta, and the largest specialty apparel company in the U.S., today reported fiscal 2022 financial results for its first quarter ended April 30, 2022.


“Our Q1 results and updated fiscal 2022 outlook primarily reflect industry-wide headwinds as well as challenges at Old Navy that are impacting our near-term performance. While we are disappointed to deliver results below expectations, we are confident in our ability to navigate the headwinds and re-stabilize the Old Navy business in order to deliver continued progress on our long-term strategy,” said Sonia Syngal, CEO, Gap Inc. “We believe that we can navigate this period of acute disruption and build an even more resilient and agile company. We remain anchored by our belief in our iconic purpose-led brands – Old Navy, Gap, Banana Republic, and Athleta – and are focused on making continued progress against our Power Plan strategy and getting back on track toward delivering growth, margin expansion, and value for our shareholders over the long term.”


First Quarter Fiscal 2022 – Financial Results

  • Net sales of $3.5 billion, down 13% compared to last year.
  • Net sales growth in the first quarter fiscal 2022 was negatively impacted by an estimated 5 percentage points related to lapping the benefit of stimulus last year and approximately 3 percentage points from divestitures, store closures, and the transition of the company’s European business to a partnership model.
  • Comparable sales were down 14% year-over-year.
  • Online sales declined 17% compared to last year and represented 39% of total net sales. 
  • Store sales declined 10% compared to last year.  The company ended the quarter with 3,414 store locations in over 40 countries, of which 2,825 were company operated.
  • Gross margin was 31.5%, 930 basis points lower than last year.
  • Merchandise margins were down 760 basis points versus last year and included approximately $170 million, or 480 basis points, of incremental transitory air freight costs. Higher discounting at Old Navy and inflationary commodity price increases partially offset by the benefit of lower discounting at Banana Republic drove the remaining decline of approximately 280 basis points.
  • Rent, Occupancy and Depreciation deleveraged 170 basis points versus last year primarily due to lower sales volume in the quarter.
  • Operating loss was $197 million in the quarter; operating margin of negative 5.7%. 
  • Net loss of $162 million; diluted loss per share of $0.44.

First Quarter Fiscal 2022 – Balance Sheet and Cash Flow Highlights

  • Ended the quarter with cash and cash equivalents of $845 million.
  • Net cash from operating activities was negative $362 million. Free cash flow, 1 defined as net cash from operating activities less purchases of property and equipment, was negative $590 million.
  • Ending inventory was up 34% year-over-year to $3.2 billion.
  • Capital expenditures were $228 million.
  • Share repurchases were $54 million, representing 3.7 million shares.
  • Paid first quarter dividend of $0.15 per share, totaling $56 million.
  • Board of Directors approved second quarter fiscal 2022 dividend of $0.15 per share.

1 Additional information regarding free cash flow, a non-GAAP financial measure, is provided at the end of this press release along with a reconciliation of this measure from the most directly comparable GAAP financial measure for the applicable period.


First Quarter Fiscal 2022 – Brand Results


Old Navy:

  • Net sales of $1.8 billion, down 19% compared to last year.  Sales in the quarter were negatively impacted by size and assortment imbalances, ongoing inventory delays, and product acceptance issues in some key categories.
  • Comparable sales were down 22%.

Gap:

  • Net sales of $791 million, down 11% compared to last year.  The brand was slightly impacted by slowed demand stemming from inflationary pressures impacting the lower-income consumer as well as continued inventory lateness to last year.  Growth at Gap Brand was also negatively impacted by the COVID-related forced lockdowns and slowed overall demand in China.
  • Global and North America comparable sales were both down 11%.

Banana Republic:

  • Net sales of $482 million, up 24% compared to last year. The brand is realizing the benefits of last year’s relaunch which is resonating with consumers particularly in light of the near-term shift into occasion and work-based categories.
  • Comparable sales were up 27%.

Athleta:

  • Net sales of $360 million, up 4% compared to last year. The brand continues to make progress in driving awareness and establishing authority in the women’s active and wellness category.
  • Comparable sales were down 7%.

Fiscal Year 2022 Outlook

“We are revising our fiscal 2022 outlook to reflect the impact of certain factors impacting our near-term performance, including execution challenges at Old Navy, an uncertain macro consumer environment, inflationary cost headwinds, and a slowdown in China that is impacting Gap Brand,” said Katrina O’Connell, Executive Vice President and Chief Financial Officer, Gap Inc. “We expect our performance to improve modestly in the back half of the year and accelerate as we enter fiscal 2023.   We believe that our long-term strategy is the right one and we are taking steps to position our brands, platform and people to capitalize on the significant opportunities ahead.”

  • The company now expects fiscal 2022 revenue to decline in the low to mid-single digit range versus last year.
  • Gross margin is expected to be in the range of 36.5% to 37.5%.
  • Reported operating margin is expected to be in the range of 1.8%-2.8% with adjusted operating margin2 in the range of 1.5% to 2.5%.
  • Reported diluted earnings per share is expected to be in the range of $0.40 to $0.70.
  • Adjusted diluted earnings per share, 2 excluding a net benefit expected from international initiatives, is expected to be in the range of $0.30 to $0.60.
  • Net interest expense of approximately $80 million.
  • Effective tax rate of approximately 27%.
  • Capital expenditures of approximately $700 million.
  • The company continues to expect to open about 30 to 40 stores each for Old Navy and Athleta in fiscal year 2022. As part of its 350-store closure plan, the company expects to close about 50 Gap and Banana Republic stores in North America during the year.

2 Additional information regarding expected 2022 adjusted operating margin and adjusted diluted earnings per share, both of which are non-GAAP financial measures, is provided at the end of this press release along with a reconciliation of these measures from the most directly comparable GAAP financial measures for the applicable period.


Webcast and Conference Call Information

Cammeron McLaughlin, Head of Investor Relations at Gap Inc., will host a summary of the company’s first quarter fiscal 2022 results during a conference call and webcast from approximately 2:00 p.m. to 3:00 p.m. Pacific Time today. Ms. McLaughlin will be joined by Chief Executive Officer Sonia Syngal and Chief Financial Officer Katrina O’Connell.


To access the conference call, please pre-register using this link. Registrants will receive confirmation with dial-in details.


A live webcast of the event can be accessed using this link. A replay will also be made available at investors.gapinc.com.


Non-GAAP Disclosure

This press release includes financial measures that have not been calculated in accordance with U.S. generally accepted accounting principles (GAAP) and are therefore referred to as non-GAAP financial measures. The non-GAAP measures described below are intended to provide investors with additional useful information about the company’s financial performance, to enhance the overall understanding of its past performance and future prospects and to allow for greater transparency with respect to important metrics used by management for financial and operating decision-making. The company presents these non-GAAP financial measures to assist investors in seeing its financial performance from management’s view and because it believes they provide an additional tool for investors to use in computing the company’s core financial performance over multiple periods with other companies in its industry. Additional information regarding the intended use of each non-GAAP measure included in this press release is provided in the tables to this press release.


The non-GAAP measures included in this press release are free cash flow, expected 2022 adjusted operating margin, and expected 2022 adjusted diluted earnings per share. These non-GAAP measures exclude the impact of certain items that are set forth in the tables to this press release.


The non-GAAP measures used by the company should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP and may not be the same as similarly titled measures used by other companies due to possible differences in method and in items or events being adjusted. The company urges investors to review the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures included in the tables to this press release below, and not to rely on any single financial measure to evaluate its business. The non-GAAP financial measures used by the company have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles.


Forward-Looking Statements

This press release and related conference call and webcast contain forward-looking statements within the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than those that are purely historical are forward-looking statements. Words such as “expect,” “anticipate,” “believe,” “estimate,” “intend,” “plan,” “project,” and similar expressions also identify forward-looking statements. Forward-looking statements include statements regarding the following: navigating disruption and building a resilient and agile company; executing against our Power Plan strategy and delivering growth, margin expansion and long-term shareholder value; our performance in fiscal 2022 and fiscal 2023; positioning our brands, platform and people to capitalize on future opportunities; revenue growth in fiscal 2022 and year-over-year revenue growth in the second half of fiscal 2022; gross margin in fiscal 2022 and in the first and second halves of fiscal 2022; reported and adjusted operating margin in fiscal 2022; reported and adjusted earnings per share in fiscal 2022; the impact of international initiatives on adjusted earnings per share in fiscal 2022; net interest expense in fiscal 2022; effective tax rate in fiscal 2022; capital expenditures in fiscal 2022; store openings and closings in fiscal 2022 and completing the North American fleet rationalization; our ability to navigate industry-wide headwinds and restabilize Old Navy and the timing thereof; the impact of challenges at Old Navy on earnings per share in fiscal 2022; the impacts of inflation, fuel costs and hourly labor headwinds on our fiscal 2022 outlook; consumer demand in fiscal 2022; pressured sales in the short-term from excess inventory at Old Navy; refocusing on Old Navy’s value equation; capturing consumers in an inflationary environment; improving Old Navy’s assortment in fall and holiday; maintaining Old Navy’s leadership in denim, active and fleece categories; Old Navy’s strong stock position for back to school; optimizing Old Navy’s in-store and online size ranges; price parity across all women’s styles at Old Navy; optimizing replenishment, monitoring demand and refining extended size offerings at Old Navy; availability of core women’s sizes at Old Navy in the fall; updating Old Navy’s marketing mix and messaging; engaging customers through our new credit card program with Barclays; the strength and long-term value of Old Navy’s core assets; Old Navy’s Price ON-Lock initiative; multi-year tailwinds for Athleta; Athleta’s revenue CAGR over the long-term; Athleta’s positioning to capitalize on current consumer trends; Athleta’s assortment mix in fiscal 2022; igniting brand relevance and driving category and channel diversification at Gap; expanding Gap across wholesale and marketplaces in fiscal 2022; Banana Republic’s positioning to capitalize on current consumer trends; air freight expense in fiscal 2022, the second quarter of fiscal 2022 the second half of fiscal 2022; the impact of lockdowns in China on our fiscal 2022 outlook; the impacts of inflation, higher discounting at Old Navy, ROD deleverage and fuel costs on our fiscal 2022 gross margin; improvements in promotional levels at Old Navy in the second half of fiscal 2022; ROD deleverage in fiscal 2022; SG&A deleverage in fiscal 2022; reducing discretionary spending and managing expenses in fiscal 2022; the sale of our UK Distribution Center; the transition of our Old Navy Mexico business; and our dividend and share repurchase programs.


Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause our actual results to differ materially from those in the forward-looking statements. These factors include, without limitation, the following risks, any of which could have an adverse effect on our financial condition, results of operations, and reputation: the overall global economic and geopolitical environment, consumer spending patterns and risks associated with the COVID-19 pandemic; the risk that our estimates regarding consumer demand are inaccurate, or that economic conditions including delayed shipments and other global supply chain challenges worsen beyond what we currently estimate; the risk that we may be unable to mitigate the impact of global supply chain disruptions on our business and operations and maintain inventory commensurate with consumer demand; the risk that inflation continues to rise, which could increase our expenses and negatively impact consumer demand; the risk that we may be unable to manage our inventory effectively and the resulting impact on our gross margins and sales; the risk that global supply chain delays will result in receiving inventory after the applicable selling season and lead to significant impairment charges; the risk that we or our franchisees may be unsuccessful in gauging apparel trends and changing consumer preferences or responding with sufficient lead time; the risk that we fail to maintain, enhance and protect our brand image and reputation; the risk that increased public focus on our ESG initiatives or our inability to meet our stated ESG goals could affect our brand image and reputation; the highly competitive nature of our business in the United States and internationally; engaging in or seeking to engage in strategic transactions that are subject to various risks and uncertainties; the risk that our investments in customer, digital, and omni-channel shopping initiatives may not deliver the results we anticipate; the risk that we fail to manage key executive succession and retention and to continue to attract qualified personnel; the risks to our business, including our costs and global supply chain, associated with global sourcing and manufacturing; the risks to our reputation or operations associated with importing merchandise from foreign countries, including failure of our vendors to adhere to our Code of Vendor Conduct; the risk of data or other security breaches or vulnerabilities that may result in increased costs, violations of law, significant legal and financial exposure, and a loss of confidence in our security measures; the risk that failures of, or updates or changes to, our IT systems may disrupt our operations; the risk that our efforts to expand internationally may not be successful; the risk that our franchisees and licensees could impair the value of our brands; the risk that trade matters could increase the cost or reduce the supply of apparel available to us; the risk of foreign currency exchange rate fluctuations; the risk that comparable sales and margins will experience fluctuations; natural disasters, public health crises (similar to and including the ongoing COVID-19 pandemic), political crises (such as the ongoing conflict between Russia and Ukraine), negative global climate patterns, or other catastrophic events; the risk that we or our franchisees may be unsuccessful in identifying, negotiating, and securing new store locations and renewing, modifying, or terminating leases for existing store locations effectively; the risk that we will not be successful in defending various proceedings, lawsuits, disputes, and claims; our failure to comply with applicable laws and regulations and changes in the regulatory or administrative landscape; reductions in income and cash flow from our credit card arrangement related to our private label and co-branded credit cards and our new credit card arrangement; the risk that our level of indebtedness may impact our ability to operate and expand our business; the risk that we and our subsidiaries may be unable to meet our obligations under our indebtedness agreements; the risk that changes in our credit profile or deterioration in market conditions may limit our access to the capital markets; the risk that the adoption of new accounting pronouncements will impact future results; the risk that we do not repurchase some or all of the shares we anticipate purchasing pursuant to our repurchase program; and the risk that additional information may arise during our close process or as a result of subsequent events that would require us to make adjustments to our financial information.


Additional information regarding factors that could cause results to differ can be found in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 15, 2022, as well as our subsequent filings with the Securities and Exchange Commission.


These forward-looking statements are based on information as of May 26, 2022. We assume no obligation to publicly update or revise our forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.


About Gap Inc.

Gap Inc., a collection of purpose-led lifestyle brands, is the largest American specialty apparel company offering clothing, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands. The company uses omni-channel capabilities to bridge the digital world and physical stores to further enhance its shopping experience. Gap Inc. is guided by its purpose, Inclusive, by Design, and takes pride in creating products and experiences its customers love while doing right by its employees, communities, and planet. Gap Inc. products are available for purchase worldwide through company-operated stores, franchise stores, and e-commerce sites. Fiscal year 2021 net sales were $16.7 billion. For more information, please visit www.gapinc.com. 

FCA Reports First-quarter 2022 U.S. Sales

Auburn Hills, Mich. – WEBWIRE

  • U.S. total sales decline 14%; retail sales down 13%
  • Jeep® brand retail sales even versus the previous first quarter
  • Jeep Grand Cherokee notches its best-ever Q1 total and retail sales, with total sales up 36% and retail sales up 44%
  • Total U.S. sales for the Jeep Compass rise 22%, and retail sales increase 23% versus the previous first quarter
  • Ram brand records its best Q1 retail sales year ever for the ProMaster van, up 27% versus the previous first quarter
  • Total commercial shipments in Q1 rise 13% versus same quarter last year


FCA US LLC had sales of 405,221 vehicles in the first quarter. Overall, total U.S. and retail sales for the first quarter declined 14% and 13% respectively, outperforming the industry.


“Despite being impacted by the existing supply chain constraints facing our industry, we continue to see strong demand for our vehicles,” said U.S. Head of Sales Jeff Kommor. “Our dealer network continues to demonstrate great flexibility as we balance and prioritize these demands in offsetting market conditions.


Jeep® brand retail sales were even versus same quarter last year. Jeep Grand Cherokee notched its best-ever Q1 total and retail sales, with total sales up 36% and retail sales up 44%. Total U.S. sales for the Jeep Compass rose 22% while retail sales increased 23% year over year. 

 

The Jeep Wrangler 4xe, the best-selling plug-in vehicle in the U.S, accounted for 8,346 (18%) of total Jeep Wrangler sales. Pacifica Hybrid accounted for 4,164 (16%) of total Chrysler Pacifica sales.

 

Ram brand recorded its best Q1 retail sales year ever for the ProMaster van, with sales up 27% versus the previous first quarter. The brand’s total commercial shipments are up a combined 7% versus the previous first quarter.

 

The 2022 Chrysler Pacifica earned a TOP SAFETY PICK+ rating from the Insurance Institute for Highway Safety (IIHS) for 2022. 


The Jeep Wrangler 4xe was named Best 4×4 in the 2022 Women’s World Car of the Year Awards.


The 2022 Ram 1500 Crew Cab earned the TOP SAFETY PICK rating (when equipped with optional front crash prevention and specific headlights) from the Insurance Institute for Highway Safety (IIHS) for 2022.

  

Alfa Romeo, Chrysler, Jeep brand and Ram vehicles earned Car and Driver Editors’ Choice Awards this past February.


See the attached table for the breakdown of brand and nameplate sales.   

 

FCA US LLC

FCA US LLC is a North American automaker based in& Auburn Hills, Michigan. It designs, manufactures, and sells or distributes vehicles under the Chrysler, Dodge, Jeep, Ram, FIAT and Alfa Romeo brands, as well as the SRT performance designation. The Company also distributes Mopar and Alfa Romeo parts and accessories. FCA US LLC is a subsidiary of Stellantis N.V. For the methodology of determining FCA US LLC monthly sales click here. 


These statements are based on current expectations and projections about future events and, by their nature, are subject to inherent risks and uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the future and, as such, undue reliance should not be placed on them. Actual results may differ materially from those expressed in such statements as a result of a variety of factors, including: volatility and deterioration of capital and financial markets, changes in commodity prices, changes in general economic conditions, economic growth and other changes in business conditions, weather, floods, earthquakes or other natural disasters, changes in government regulation, production difficulties, including capacity and supply constraints, and many other risks and uncertainties, most of which are outside of our control.   

Society Pass (SoPa) Reports Full Year 2021 Financial Results, Sees 891% Year on Year Revenue Growth

Society Pass Incorporated (SoPa) (Nasdaq: “SOPA”), a leading Southeast Asia loyalty and ecommerce ecosystem, reported its financial results for its fiscal year ending 31 December 2021.

The Company’s total revenues increased over eight hundred and ninety percent year on year mainly as a result of the relaunch of its Leflair lifestyle e-commerce business in September 2021. “2021 has been a strong year for SoPa in spite of the impact from the Delta and Omicron variants. Despite only operating in only the last four months of 2021, Leflair recognized monthly double digit revenue growth in the fourth quarter. With the region rapidly pivoting to recovery, we expected to see robust eCommerce growth in both transaction volume and basket size. SoPa’s healthy pipeline and strategy for acquiring rapidly growing eCommerce platforms will allow us to capture that exciting growth. We expect 2022 to be a stellar year for SoPa as we continue to build out our next generation loyalty platform and acquire more leading e-commerce companies in SEA”, said Dennis Nguyen, Founder, Chairman and CEO of Society Pass.

Key Highlights:
– Total revenue grew by 891% primarily attributed to the acquisition of the Leflair lifestyle platform
– The Company is well capitalized to rollout its business plan with cash on hand growing over 4,400% to $23.2 million, primarily due to the completion of its Nasdaq listing IPO in November 2021 (SoPa also completed a $11.5 million (gross proceeds) follow-on public offering in February of 2022)
– Since its inception, Society Pass has acquired 4 eCommerce businesses in Southeast Asia namely; #HOTTAB, Leflair, and Handycart in Vietnam, as well as Pushkart in Philippines

In 2022, SoPa expects further growth as the SEA countries shift to focus on economic recovery. The Company also expects to launch of Society Points in Q2 2022, which it expects to increase profit margins and drive customer retention for merchants. In addition, SoPa plans to make additional acquisitions in 2022 that will generate additional revenue synergies and create cost efficiencies as part of the expanding SoPa ecosystem.

About Society Pass

Society Pass is a loyalty and data marketing ecosystem that operates multiple e-commerce and lifestyle platforms across its key markets. Its business model focuses on collecting user data through the expected circulation of its universal loyalty points. It seamlessly connects consumers and merchants across multiple product and service categories fostering organic loyalty. Since its inception, SoPa has amassed over 1.6 million registered consumers and over 5,500 registered merchants/brands on its platform. It has invested 2+ years building proprietary IT architecture with cutting edge components to effectively scale and support its Platform’s consumers, merchants, and acquisitions.

Society Pass provides merchants with #HOTTAB Biz – a convenient order management app for business partners on SoPa.asia, and #HOTTAB POS – a specialized POS technology solution, a comprehensive system for payment, loyal customer management, user profile analytics, and convenient financial support packages for small and medium-sized enterprises.

In addition, SoPa operates Leflair.com, Vietnam’s leading lifestyle e-commerce platform, Pushkart.ph, a popular grocery delivery company in Philippines, and Handycart.vn, a leading online restaurant delivery service based in Hanoi, Vietnam. For more information, please check out: http://thesocietypass.com/

Media contact
PRecious Communications for SoPa
sopa@preciouscomms.com






Topic: Press release summary

Goodyear Reports Fourth Quarter, Full-Year 2021 Results

. In addition, the combination is expected to generate net present value of $450 million or more by utilizing Goodyear’s available U.S. tax attributes. These tax attributes are expected to reduce the company’s cash tax payments, positioning it to generate additional free cash flow.


Conference Call


Goodyear will hold an investor conference call at 9 a.m. EST today. Prior to the commencement of the call, the company will post the financial and other related information that will be presented on its investor relations website: http://investor.goodyear.com.


Participating in the conference call will be Richard J. Kramer, chairman, chief executive officer and president; Darren R. Wells, executive vice president and chief financial officer; and Christina L. Zamarro, vice president, finance and treasurer.


Investors, members of the media and other interested persons can access the conference call on the website or via telephone by calling either (800) 895-3367 or (785) 424-1061 before 8:55 a.m. EST and providing the Conference ID “Goodyear.” A taped replay will be available by calling (888) 225-1539 or (402) 220-4972. The replay will also remain available on the website.


About Goodyear


Goodyear is one of the world’s largest tire companies. It employs about 72,000 people and manufactures its products in 57 facilities in 23 countries around the world. Its two Innovation Centers in Akron, Ohio, and Colmar-Berg, Luxembourg, strive to develop state-of-the-art products and services that set the technology and performance standard for the industry. For more information about Goodyear and its products, go to www.goodyear.com/corporate. GT-FN


Certain information contained in this press release constitutes forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. There are a variety of factors, many of which are beyond our control, that affect our operations, performance, business strategy and results and could cause our actual results and experience to differ materially from the assumptions, expectations and objectives expressed in any forward-looking statements. These factors include, but are not limited to: our ability to achieve the expected benefits of the Cooper Tire & Rubber Company acquisition; the impact on us of the COVID-19 pandemic; increases in the prices paid for raw materials and energy; inflationary cost pressures; delays or disruptions in our supply chain or the provision of services to us; changes in tariffs, trade agreements or trade restrictions; our ability to implement successfully our strategic initiatives; actions and initiatives taken by both current and potential competitors; deteriorating economic conditions or an inability to access capital markets; a labor strike, work stoppage, labor shortage or other similar event; work stoppages, financial difficulties, labor shortages or supply disruptions at our suppliers or customers; the adequacy of our capital expenditures; foreign currency translation and transaction risks; our failure to comply with a material covenant in our debt obligations; potential adverse consequences of litigation involving the company; as well as the effects of more general factors such as changes in general market, economic or political conditions or in legislation, regulation or public policy. Additional factors are discussed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. In addition, any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change.


Download the Financial Statements

MobiusTrend Reports: Rising of China’s Civilian Restaurant

MobiusTrend releases the insight research report on ‘ Rising of China’s Civilian Restaurant’. In China, a restaurant with good taste and reasonable price is called Civilian Restaurant. Unlike the luxury of star hotels, civilian restaurants are often more appealing to local residents because they offer better prices and have a touch of traditional Chinese culture. ‘Shatou Four-Season’ is a representative of Civilian Restaurant, which has grown from a small restaurant of 20 square meters to a famous restaurant brand after nearly 10 years of development.

On the eve of Thanks-giving, AR Cheng, CEO of ‘Shatou Four-Season Catering Group’ announced that they hit 270,000 followers on Douyin (TikTok in China). AR Cheng, like most local villagers in Shenzhen, China, is a pragmatic businessman. “The diners who come to our restaurant eat over 20,000 oysters a day, and that number is growing quickly!”, says AR Cheng.

“Oysters, along with other seafood items, are the favorite dish of most of our guests. The Chinese people are richer, so they are more willing to come and spend money. Our TikTok account, with more than 270,000 followers, comes from customers of my restaurant. They not only like the food, but they also like to share food information to their friends. They use social media platforms like Dianping, TikTok, Wechat, Weibo to share their opinions.”

For more information of Shatou Four-Season story, visit Douyin (TikTok in China), Dianping, QQ Video.

AR Cheng, on the other hand, is one of the many smart and hardworking people in China. And the rise of Civilian Restaurant also represents the steady rise in income levels of its residents.

Detail of the research report, please visit: http://www.mobiustrend.com/

About MobiusTrend

MobiusTrend Group is a leading market research organization in Hong Kong. They have built one of the premier proprietary research platforms on the financial market, emphasizing on emerging growth companies and paradigm-shifting businesses. MobiusTrend team is professional in market research reports, industry insights, and financing trends analysis. For more information, please visit http://www.mobiustrend.com/

Media contact

Company: MobiusTrend Research

Contact: Trends & Insights Team

E-Mail: cs@mobiustrend.com

Website: http://www.mobiusTrend.com

SOURCE: MobiusTrend Research










Topic: Press release summary