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Taking Stock With Teens

FALL 2020

20 Years Of Researching U.S. Teens

GenZ Insights

®

Piper Sandler does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interestthat could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decisions. This report should be read inconjunction with important disclosure information, including an attestation under Regulation Analyst Certification, found on pages 78 - 80 of this report or at the following site:http://www.pipersandler.com/researchdisclosures.

http://www.pipersandler.com/researchdisclosures

Risks to achievement of investment objectives include, but are not limited to, the following:

• Reliance on key top management

• Changing consumer preferences

• Changes in input costs and raw materials

• Markdown risks

• Product flow and inventory disruptions

• Competition

• Lack of pricing power

• Deleveraging of fixed expenses

• Foreign exchange rate risk

• General macroeconomic uncertainty

Investment Risks

2 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research

Table of Contents

• Demographics

• 20 Years of Teen

Research

• Key Takeaways

• Views on the Economy

• COVID-19 Insights

• Stock Highlights

• Gen Z Insights

• Top Social Media

• Spending Trends

• Channel Preferences

• Secondhand & Rental

• Fashion Casualization

• Content Consumption

• Smartphone Trends

• Video Games

• Historic No. 1 Ranks

• Apparel & Footwear

• Top Fashion Trends

• Up- & Downtrending

• Accessories

• Beauty

• Websites

• Amazon Prime

• Restaurants

• Snacks

• Plant Based Meat

• Survey Demographics

• Spending Breakdown

& Channel Trends

• Top Brand Time Series

• Top Athletic Brands

• Social Media History

• Content Consumption

History

• Meet Our Senior

Analyst Team

01 02 03 04Executive

Summary

Teen Behavior &

Habits

Teen Brand

Preferences

Demographics &

Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 3

SOUTH WEST MIDWEST NORTHEAST

40th Semi-Annual Proprietary GenZ Research Project

Survey is executed in partnership with DECA

The source for all charts/tables within this report is Piper Sandler.

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

10%

24%

24%

42%

9,800 TEENS

SURVEYED 15.8AVERAGE AGE

48 U.S.

STATES

$67,500AVERAGE HOUSEHOLD INCOME

33% TEENS CURRENTLY

PART-TIME EMPLOYED

MALE FEMALE NON-BINARY

1%

48%51%


Commemorating 20 Years Of Teen Research

2001 – 2020 –

Week 4 September

WAP – Cardi BFallin’ – Alicia Keys

George W. Bush Donald Trump

COVID-19,

George Floyd, Breonna Taylor September 11, 2001Current Affairs

Taking Stock

with Teens

N=300; 10 States

Gap, Abercrombie &

Fitch, Express

Survey Size

Top Brands

N=9,800; 48 States

Nike, American Eagle,

adidas

Gen Y Gen ZGeneration



Key Takeaways – Demographics & Spending

• This Fall marks 20 consecutive years of conducting primary research on the U.S. teen on a semi-annual basis

• Our 40th semi-annual survey was conducted between August 19 & September 22

• Regional responses impacted by school start dates: 42% in the South (vs. 44% Spring); NE at 10% (same as Spring)

• As a result of COVID-19, 76% of teens went back to school either in a hybrid format or fully virtual

• 8% of teens or an immediate member in their household have had COVID-19 (vs. national average of 6%)

• 48% of teens believe the economy is getting worse vs. 47% in Spring & 32% last Fall

• Teen “self-reported” spending at an all-time survey low of $2,150, down 5% sequentially & 9% Y/Y

• Areas of wallet share contraction included: Food (but still No. 1 priority) & Concerts/Events

• Areas of wallet share expansion included: Video Games, Movies & Furniture/Room Accessories

• Cosmetics spending for females down 20% Y/Y; skincare for females down only 3%; skincare for males up 12%

• In the next six months, teen intent to dine-in & fly on a plane is higher & to visit a retail store is lower

• Secondhand represents 8% of shopping time allocation, taking share from off-price, specialty & dept. stores



Key Takeaways – Brand & Preference Rankings

• Chick-Fil-A is No. 1 restaurant; Chipotle posted steady brand gains while Dunkin’ moved up to No. 4

• 18% of teens consume plant-based meat with Impossible Foods as the No. 1 choice

• Video games are 10% of total teen wallet share—new survey high; 63% expect to purchase a NextGen console

• Teens spend 34% of their daily video consumption on Netflix (gained share) followed by YouTube

• 54% of teens cite Amazon as their No. 1 favorite e-com site; SHEIN took No. 2 spot for first time (ahead of Nike)

• Ulta gained 400 bps of share as No. 1 beauty destination with 42% share; Target gained share; Amazon stays top-five

• Handbag spending at $87, a new low in survey; Louis Vuitton unseats Michael Kors for No. 1 spot; Coach gained share

• 86% of teens own an iPhone and 89% expect an iPhone to be their next phone; both new all-time highs

• Snapchat is the favorite social media platform (again) but Instagram fell from No. 2 to No. 3 as TikTok moved up to No. 2

• Significant movement in top social & political issues led by Racial Equality, Environment & Black Lives Matter

• Teens’ favorite celebrity is Kevin Hart and most followed influencer is David Dobrik



Teen Perspective Of The Broader Economy


• 48% believe the economy is getting worse—this compares to 47% in Spring and 32% from Fall 2019

• 76% of teens have returned to school in either a hybrid or a fully-virtual format this Fall

• 33% of teens have a part-time job—this is down from 37% in Spring 2020 and 35% in Fall 2019

• 23% of teens indicated that COVID-19 has impacted their ability to find work

28%

52% 48%

0%

10%

20%

30%

40%

50%

60%

Spring2011

Fall2011

Spring2012

Fall2012

Spring2013

Fall2013

Spring2014

Fall2014

Spring2015

Fall2015

Spring2016

Fall2016

Spring2017

Fall2017

Spring2018

Fall2018

Spring2019

Fall2019

Spring2020

Fall2020

Getting Better Getting Worse


64%Would take a Vaccine

when available

47% Returned to School Virtually

24% Returned to School In-Class

29% Returned in a Hybrid Format

Since COVID…• 84% Visited a retailer

• 72% Dined-in a restaurant

• 11% Flew on a plane

In the Next 6 Months…• 81% Plan to visit a retailer

• 77% Plan to dine-in

• 33% Expect to fly on a plane

Lockdown UnlockedEmployment Impact

Back to School

Did COVID-19 impact

your part-time job or

ability to work?

NO: 77%

YES: 23%

COVID-19 Vaccine

COVID-19 Insights



NKE (+) HAS HELD ITS NO. 1 POSITION FOR 10 CONSECUTIVE YEARS; GAINS FURTHER SHARE

Nike has been the No. 1 apparel brand in our survey for 10 years and further strengthened its lead at 27% share—up 400 bps

vs. LY. As a preferred footwear brand, Nike represents 52% of teen preference gaining a substantial 1,000 bps share. Nike

ranks as the top trend for teens with popular responses including AirForce 1s & Jordans. It is the No. 1 preferred athletic

apparel & footwear brand among upper-income teens at 60% and 74% share, respectively.

LULU (+) BRAND HITS NEW SURVEY PEAK AS NO. 6 PREFERRED APPAREL BRAND

lululemon is the No. 6 preferred apparel brand in our survey—moving up from No. 7 in Fall 2019. Among all females, it ranked

No. 4 vs. No. 6 last year. Among upper-income females, it ranks No. 2 (behind AE) reaching 10% share. It ranked No. 8 among

upper-income males vs. No. 9 last year. Leggings/lululemon are the No. 1 trend for females in school and lululemon is the No. 2

athletic apparel brand behind Nike—gaining 300 bps share Y/Y.

ELF (+) REGISTERS ALL TIME HIGH IN SURVEY

e.l.f. is the No. 2 preferred makeup brand for all teens—up from No. 4 last year and marks its highest ranking to-date in our

survey. We believe this has been fueled by the significant success the brand has had on TikTok. While not in the top-ten, it

ranks No. 17 as a preferred skincare brand (vs. 16 last year); we note skincare is only 9% of tracked channel sales but 25% of

dot com sales (as of Q1). We are pleased to see its core channels (ULTA, TGT, WMT & AMZN) all in the top-five preferred

beauty shopping destinations.

ULTA (+/=) NO. 1 PREFERRED BEAUTY DESTINATION STRENGTHENS LEAD VS. SEPHORA

ULTA continues to be in the best position to gain market share as we progress through the pandemic. It is the No. 1 beauty

destination among teens at 42% share—up 400 bps from last year. Relative to No. 2 Sephora, it strengthened its lead, now 22

percentage points ahead vs. 15 percentage points last year. It took lead over Sephora among upper-income teens as well for

the first time in our survey history. 86% of teens still prefer stores for beauty. Clearly spending in cosmetics is pressured, down

20% Y/Y as the pandemic is further altering behavior. We are seeing teen behavior moving from “everyday” (22%) makeup

wearers to “sometimes” (55%) or “never” (23%) makeup wearers. Skincare spending is more resilient—down only 3% Y/Y.

Stock Highlights: Global Lifestyle BrandsErinn Murphy, Managing Director | Sr. Research Analyst



http://www.bing.com/images/search?q=ulta+logo&id=A42C292BF9BBF04DCA74CACEB6A2FABCD7492FC6&FORM=IQFRBA

Stock Highlights: Entertainment TechnologyYung Kim, Assoc. Vice President | Sr. Research Analyst

NFLX (+) MAINTAINS SOLID POSITION WITHIN ONLINE VIDEO

As teens see their households continue to migrate away from traditional TV services, we expect a growing

transition of consumer content spend toward online video services. Netflix is first in teen daily video time

spent at 33%, retaking the lead from YouTube at 31% and traditional TV at 11%. All three lost share to

Disney+ and Apple+, each of which debuted in our survey at 7% and 2%, respectively. Looking into 2021

and beyond, despite increasing competition from Disney and Apple, we are optimistic regarding ongoing

international sub growth and price increases amid the current environment and eventually a post Covid

world.

ATVI (+) DIGITAL GROWTH AND CALL OF DUTY

The transition to digital distribution is a positive for publisher margins and 61% of teens said they now

download more than half of their games. Fortnite interest rebounded slightly, likely boosted by the Chapter

2 update in December, and sits at 39%, up from 37% in Fall-19, but significantly down from 53% in Spring-

19. Call of Duty: Blackout trailed only Fortnite as the most popular free-to-play title we listed and was up

significantly to 33% from 26% in the fall. The next iteration of the stand-alone Call of Duty game is the most

anticipated title for 2020 among 35% of teens vs. second place Cyberpunk 2077 at 7%.



Stock Highlights: Internet & SemiconductorsTom Champion, Director & Harsh Kumar, Managing Director | Sr. Research Analysts

AMZN (+) CONTINUES TO BUILD ON MARKET LEADERSHIP (covered by Tom Champion)

Amazon is again the most widely used retailer among teens with 54% of respondents saying Amazon is

their favorite online retailer (compared to second place at just 5%). This is up from 53% in Spring 2020 and

47% in Fall of 2018. The category dominance in the teen segment is underappreciated, in our view. Prime

household subscription growth in the U.S. was also strong in the Fall 2020 survey with 84% of households

using the service, an increase of 6% y/y. The Prime franchise is well understood by investors but we think it

notable that Amazon is able to make subscription gains even in a relatively saturated US audience base.

The combination of Prime adoption and the maturation of the teen cohort should serve as a powerful

tailwind for many years to come.

AAPL (+) GROWING SHARE IN IPHONE AND WATCH (covered by Harsh Kumar)

Both the 86% iPhone ownership and 89% intention to purchase an iPhone metrics are record highs for our

Teen Survey, up from 85% and 88%, respectively, in Spring-20. We believe the increased penetration and

intention are incredibly important for a maturing premium smartphone market. In addition, these trends are

encouraging ahead of Apple’s 5G iPhone launch, which could provide a significant product cycle refresh.

Also, the Apple Watch continues to be the top smartwatch among teens. The Apple Watch ownership was

25%, flat from the Spring-20 survey. We view the market share consistency as a great example of the

company’s ability to drive hardware sales in the wearables/accessories market. Finally, we think these

positive hardware trends can be a catalyst for further services growth, as the hardware installed based for

Apple continues to grow.



Stock Highlights: Packaged FoodsMichael Lavery, Director | Sr. Research Analyst


K (+) KELLOGG HAD MOST PREFERRED BRAND MENTIONS IN OUR COVERAGE UNIVERSE

Kellogg received the 3rd and 8th most preferred snack brand mentions by respondents through its Cheez-It

(ahead of Doritos) and Pringles brands. Pringles was the 8th most preferred snack brand, up two spots

from our 1H20 survey. Kellogg company brands received 13% of all responses as most preferred snack

brands by teens, 2nd only to PepsiCo, and unchanged since 1H20.

CPB (+) GOLDFISH HAD 2ND MOST MOST PREFERRED SNACK BRAND MENTIONS

Goldfish products were mentioned the second most number of times in the survey (after Lay’s) with Cape

Cod chips, Pepperidge Farm, Snyder’s pretzels, and Kettle chips also receiving a notable amount of

mentions. Goldfish had 10% of mentions among teens, up from 8% in 1H20. The company’s investments

in its brands may be paying off, at least in terms of brand awareness among teens.

MDLZ (+) MONDELEZ PRODUCTS BROADLY SEE TEEN TRACTION, LED BY OREOS

Mondelez products were named as most preferred snacks in 6% of all responses, unchanged from our

1H20 survey. Oreo led its mentions as the 6th most preferred snack. Ritz Crackers and Sour Patch also

received many mentions by survey respondents.

BYND (+) TEENS SHOW STRONG INTEREST IN PLANT-BASED MEAT

Of teens we surveyed, 18% consume plant-based meat. Of those who have tried it, Beyond Meat was the

second most mentioned brand (33% of mentions), ahead of Kellogg’s Morningstar Farms (22%) but less

than Impossible Burger (37%). We expect plant-based meat’s rapid growth to continue, as teens are more

willing to try it than older consumers, based on our prior all-ages survey of US adults. Beyond is one of the

early leaders in this growing category, but growing competitive pressure remains a risk.


Stock Highlights: Restaurants & Branded HospitalityNicole Miller Regan, Managing Director | Sr. Research Analyst

CMG (+) STEADY BRAND SCORES

Chipotle remains third most preferred brand among Upper Income teens (9% mindshare vs. 8% in Spring

2020, 6% in Fall 2019, 8% in Spring 2019, 8% in Fall 2018, 7% in Spring 2018, and 8% in Fall 2017).

Chipotle experienced sequentially higher mind share levels among Average Income teens (#4 at 4% in Fall

2020 vs. #6 at 3% in Fall 2019) and within the brand’s historical range (as compared to #4 at 5% in Spring

2020, #6 at 3% in Spring 2019 and #4 at 4% in Fall 2018). We believe gaining Average Income mindshare

presents the largest opportunity as marketing efforts aid awareness. Chipotle continues to be most

preferred at Hispanic cuisine level across both Upper and Average income teens.

SBUX (=) REMAINS MOST PREFERRED PUBLIC COMPANY BRAND AMONG TEENS

Starbucks maintained double-digit mindshare among Upper Income teens (10% mindshare vs. 12% in

Spring 2020 vs. 11% in Fall 2019, 10% in Spring 2019, and 12% in Spring/Fall 2018). However, preference

remains muted vs. historical peak levels (18% Fall 2013 & Spring 2007; 16% Spring 2008; 15% Fall 2014 &

Spring 2009 & Fall 2007). Among Average Income teens, it maintained its No. 2 spot (albeit with 9%

mindshare vs. 8% in Spring 2020 and 10% in Fall 2019). We continue to view Starbucks’ brand equity as

relevant social currency and note it is the most preferred brand at the coffee cuisine level.

DNKN (+) MOVES INTO #4 POSITION ON STEADY MINDSHARE WITH ROOM TO GROW

Dunkin’ maintained mindshare among both Upper and Average Income teens (3% mindshare in Spring and

Fall 2020 vs. 2019 where the brand did not rank in the top 10 and vs. Spring 2018 at 2% mindshare). While

absolute preference levels remain muted as compared to Starbucks this is in part driven by Dunkin’s

legacy geographic concentration in the Northeast and Starbucks’ larger size overall. When considering

Upper Income teen responses in the Northeast Dunkin’s mindshare is 6%.



Teen

Beh

avio

r &

Hab

its


Video Games

Social Media & Content

Food & Snacks

Fashion & Beauty

Key Themes,

Trends &

Takeaways

E-Commerce


GenZ Insights: They Actually Care About The World


Most Important Political & Social Issues

• We started asking teens to “name a political or social issue that is important” to them for the first time in Fall 2019

• GenZ is unique in that they appear to care more about social justice & the environment versus former generations

• We saw a significant move in teens advocating for Racial Equality (19%), taking the No. 1 spot; environment No. 2

• Additionally, specific mentions of Black Lives Matter movement ranked No. 3.; Police Brutality moved into the top-ten

• Mentions of the 2020 Election outcome & Voting ranked No. 4 and Coronavirus moved down from No. 2 to No. 5

FALL 2019 SPRING 2020 FALL 2020

1 Environment 16% 1 Environment 16% 1 Racial Equality 19%

2 Immigration 12% 2 Coronavirus 11% 2 Environment 9%

3 Gun Control 10% 3 Abortion 8% 3 Black Lives Matter 8%

4 Abortion 8% 4 Gun Control 6% 4 2020 Election / Voting 7%

5 Racial Equality 7% 5 Racial Equality 6% 5 Coronavirus 6%

6 Donald Trump 4% 6 Immigration 6% 6 Abortion 5%

7 Bullying 3% 7 2020 Election / Voting 4% 7 Equality 5%

8 Equality 3% 8 Equality 4% 8 Immigration 2%

9 2020 Election / Voting 2% 9 Health Care 3% 9 Police Brutality 2%

10 LGBTQ+ Rights 2% 10 Donald Trump 2% 10 Gun Control 2%


Top Environmental Concerns

GenZ Gets Specific On Their Environmental Concerns


97%Of Teens List A Specific Concern

44%Have Changed Their Behavior As A Result

(vs. 46% in Fall 2019)

Teen Behavioral Changes

1. Global Warming

2. Pollution/Waste

3. Natural Disasters

4. Coronavirus

5. Wildfires

6. Water

7. Plastic

8. Deforestation

9. Air / Air Quality

10. Wildlife

1. Driving Less; Walking/Biking More

2. Wearing Re-Usable Masks

3. Recycling More & Reducing Waste/Litter


GenZ Insights...The Who’s Who?


Favorite Celebrities

1. David Dobrik

2. Emma Chamberlain

3. LeBron James

4. Charli D’Amelio

5. Nelk Boys

6. Danny Duncan

7. Donald Trump

8. Kylie Jenner

9. Addison Rae

10. Dwayne “The Rock” Johnson

Favorite Social Media Personalities

Who They Like & Who They Follow

1. Kevin Hart

2. Harry Styles

(tie) LeBron James

4. Adam Sandler

5. Dwayne “The Rock” Johnson

6. Zendaya

7. Donald Trump

8. Taylor Swift

9. Tom Holland

10. Travis Scott

• Kevin Hart and LeBron James re-affirmed their top spots in the minds of teens, while Harry Styles joined them.

Zendaya moved up in the list; Tom Holland moved into the Top 10

• David Dobrik again reigned supreme for Social Media personalities; as seen in previous surveys, the list is dominated

by YouTube and TikTok content creators. For the first time, a content house (Nelk Boys) appeared on the list


TikTok Moves To No. 2 Favorite Social Media Platform


Highest Social Media Engagement Favorite Social Media Platform

Social Media Preferences

• Instagram continues to lead the pack in usage / engagement followed by Snapchat & TikTok. TikTok moved up from

62% in Spring to 69% this Fall.

• Snapchat was the No. 1 preferred social media platform. TikTok had another strong showing following its Spring

debut moving up to the No. 2 spot from the No. 3 spot, unseating Instagram which moved down to No. 3.

• The average teen claims to spend 12 hours per week on social media

1 Instagram 84%

2 Snapchat 80%

3 TikTok 69%

4 Twitter 39%

5 Pinterest 32%

6 Facebook 28%

7 Discord 20%

8 Reddit 14%

9 Other 4%

10 LinkedIn 3%

1 Snapchat 34%

2 TikTok 29%

3 Instagram 25%

4 Discord 3%

5 Twitter 3%

6 Facebook 2%

7 Reddit 1%

8 Pinterest 1%

9 Other 1%

10 Linkedin 0%


What’s In Your Wallet? Food, Video Games & ClothingUpper-Income Teens

1 Food 21%

2 Video Games 17%

3 Clothing 16%

1 Clothing 27%

2 Food 21%

3 Personal Care 11%

Males’ Wallet Share Females’ Wallet Share

• Food remains the largest category for male spending, however, it fell 200 bps Y/Y

• Video Games moved up from the No. 3 to the No. 2 priority in the male wallet at 17%--up 400 bps Y/Y

• Clothing moved down from No. 2 to No. 3 at 16% share for males—down 100 bps Y/Y

• Clothing remains the top-choice within the wallet for females, inline with Fall 2019; Food stayed at No. 2

• Personal care remained the No. 3 wallet choice for females at 11%--up 100 bps from Fall 2019



Teen Spending Down 9% Y/Y & Down 5% Vs. Spring

• Teens self-reported spending ~$2,150 per year in our survey, implying total teen spending of ~$60B, assuming 27.7M

teens ages 13-19.


$3,023

$2,371

$2,150

$2,000

$2,200

$2,400

$2,600

$2,800

$3,000

$3,200

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Peak Spend

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Spend

All Teens


Shopping Channel Preference

• This Fall, we included “secondhand” as an option to the question, “when shopping for clothing, what % do you spend

in the following channels?” Secondhand captured 8% of upper-income shopping channel preferences.

• We saw specialty shed 200 bps share Y/Y and major chain/department stores down 100 bps Y/Y as did off-price

• Despite altering our question, online/eTail remains ~22% of the shopping channel mix with teens


Upper-Income Teens


10%

15%

20%

25%

30%

35%

40%

45%

% T

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Sp

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Department Store/Specialty Online Only eTailers

Time Spent Shopping Continues To Shift Online

• We see teens allocate less & less time in department stores & specialty as online becomes more important

• Department stores & specialty combined represent 33% of shopping channel preferences—down from 36% LY

• Online represents 22% of shopping channel mix, inline with Spring but down 100 bps from last year

• In Fall 2020, we added a new option (secondhand) to the mix which could have pulled share from other channels

• Of note, 86% of female teens preferred shopping for beauty in-store vs. online—this is down from 90% in Spring


Upper-Income Teens


Secondhand Market Adoption

• We asked teens about their activity on popular Secondhand Marketplaces, including Poshmark, The RealReal,

Tradesy, thredUp, Mercari, and Depop – above, Upper Income teen participation on these platforms is charted (left)

• Of Note, Depop rose to the #10 position on Favorite Websites for all teens; StockX ranked No. 5 among males

• Secondhand marketplace activity has picked up sequentially since the Spring, with UI Males moving from 13% to 18%

and upper-income females increasing to 40%.

• 46% of UI teens have PURCHASED clothes secondhand (either a marketplace or a thrift store) & 58% have SOLD on

the Secondhand with female engagement higher than male


% of UI Teens Who Have Tried a Secondhand eCom Platform 46%Have Purchased Secondhand

58%Have Sold Secondhand

28%Have Used a Secondhand eCom Platform

Thrift/Consignment Stores Ranked

#13As Favorite Brand/Retailer

This Compares to a Rank of

#44In Fall 2019’s Survey

Upper-Income Teens


Rental Market Appetite

• Appetite from UI teens for a rent-and-return service to keep wardrobes fresh was roughly in-line sequentially – with UI

male appetite up 100 bps from Spring’s survey to 26% and UI female team in-line at 37%

• Appetite for a rent-and-return service is higher amongst Average Income Teens, with 34% having an appetite vs. 31%

for Upper Income Teens; we first started asking these questions in Spring 2020


Would You Pay a Monthly Fee For a Rent-and-Return Retail Service?

Upper-Income Teens


Athletic Apparel Trending Upward

• 38% of preferred apparel brands are “athletic,” up from 37% last Fall and 37% in Spring 2020.

• Preppy brands such as Sperry, Ralph Lauren and Vineyard Vines continue to cede share to athletic brands.

Aggregate Athletic Mindshare As Favorite Apparel Brand - Upper-Income Teens



Athletic Footwear Still Gaining Share Among FemalesFavorite Footwear Brand Mindshare - Upper-Income Female Teens

• 80% of females prefer an athletic brand of footwear (above), up 500 bps Y/Y and reaching a new survey high.

• 88% of males prefer an athletic brand of footwear, 300 bps above the 2018-2019 average



Netflix & YouTube Top Platforms


Teen Daily Video Consumption

• On average, teens spend 34% of their daily video consumption on Netflix, up from 33% in Spring 2020

• YouTube gained 100 bps share an remained in the No. 2 spot at 32% (vs. 31% in Spring)

• Disney+ (ranked #5) and AppleTV+ (#7) both declined slightly in only a second appearance in the Teen Survey

garnering 6% and 1%, respectively, vs. 7% and 2% in the Spring

• Traditional Cable TV remained #3, but dipped to 9% from 11%, while Hulu stayed at #4 but slid to 7% from 8%

• See appendix for time series of data

Spring 2020 Fall 2020

1 Netflix 33%

2 YouTube 31%

3 Cable TV 11%

4 Hulu 8%

5 Disney+ 7%

6 Amazon 3%

7 Apple TV+ 2%

8 Facebook Watch tab 1%

9 Other streaming 5%

1 Netflix 34%

2 YouTube 32%

3 Cable TV 9%

4 Hulu 7%

5 Disney+ 6%

6 Amazon 3%

7 Apple TV+ 1%

8 Facebook Watch tab 1%

9 Other streaming 6%


Online Video Gaining Share

• Cord Nevers: 35% of teens in our survey indicated that they do not have

cable TV in their household; this is up from 33% in the Spring.

• Cord Cutters: 7% of teens said they expect their household to cancel cable

TV within the next 6 months, down slightly from 8% in the Spring.

• Migration of Time/Wallet to Online Video: As a result of these trends, we

expect to see an ongoing transition toward online video / streaming services.


Are you planning to cancel your cable subscription over the next 6 months?

% of

Students

Fall 2016

% of

Students

Spring

2017

% of

Students

Fall 2017

% of

Students

Spring

2018

% of

Students

Fall 2018

% of

Students

Spring

2019

% of

Students

Fall 2019

% of

Students

Spring

2020

% of

Students

Fall 2020

I don't have cable 17% 17% 20% 22% 25% 28% 32% 33% 35%

No 75% 72% 72% 69% 66% 62% 60% 58% 58%

Yes 8% 10% 8% 10% 9% 10% 9% 8% 7%


Teen iPhone Ownership and Purchase Intent Up Slightly

• iPhone ownership was up to 86%, the highest we’ve seen. We note ownership is up from 83% in last Fall’s survey.

• 89% of teens said their next phone will be an iPhone, up 3% from Fall 2019. 89% is the highest level we’ve seen in our survey.


0%

10%

20%

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Own an iPhone Expect next phone to be an iPhone


Teen Apple Watch Ownership Remains Flat

• Smart watch ownership was down to 30% from 31% in Spring 2020. Apple Watch ownership was flat at 25% versus the Spring.

• Apple Watch buying intent was down slightly, with 16% planning to buy in the next 6 months vs. 17% in the Spring.


0%

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Own A Smartwatch Plan to buy Apple Watch


Console Video Game Takeaways

• Teens playing Daily increased to 31% vs. 26% for Spring-20 while Teens who never play declined to 31% from

35%. The changes were the most significant we have recorded for each segment since Spring-08.

• 57% of Teens said they are spending more time playing video games in 2020 vs 2019. This compares to only

33% in Spring-20, when our Survey was distributed at the onset of Covid.

• A majority of teens, 63%, expect to purchase a next gen console (PS5 or Xbox Series X scheduled to launch

in Nov.) within the next two years, this is up from 59% in Spring-20.

• Percentage of teens who anticipate downloading the majority of games onto consoles is 67%, up from 61% for

Spring-20 and up from 37% in Fall-15, when we first asked the question.


41% 42%45% 45% 44% 45% 46%

34% 35%35% 35% 37% 35% 35%

6% 5%5% 5% 5% 4% 3%

14% 10%7% 6% 5%

4% 4%

2%3% 3% 5% 5%

6% 7%

4% 6% 5% 4% 5% 6% 5%

Fall-17 Spring-18 Fall-18 Spring-19 Fall-19 Spring-20 Fall-20

Do you or a member of your household own a gaming console?

X1 or PS4 X1 or PS4 and X360 or PS3 Nintendo Wii or Wii U X360 or PS3 Nintendo Switch No


How Much Are Teens Spending Annually On Video Games?

• Expected spend by male teens on video games (as % of total budget) is 17% for Fall 2020, while total

expected spend (male & female) is $227

• Food (21%) remained the largest expected spend for Teen males, but for the first time in our survey, Video

Games (17%) jumped to second, ahead of clothing (16%)

• Average video game spend by teens over the past 15 surveys is $197


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Video Game Spend (Male+Female) Video Game Spend Allocation (Male)

$227 - Expected Video Game Spend in 202017% - Budget Spent On Video Games in 2020


Console Video Game Takeaways


Call of Duty Biggest Gainer, Fortnite Still Well Below Peak

• Popularity of Call of Duty spiked in our survey to 62% from 33% for Spring-20, taking

the lead in the category over Fortnite for the first time. In March, Activision launched

Call of Duty: Warzone near the start of Covid regulations.

• Fortnite dropped to 37% from 39% for Spring-20, and fell to #2 in our survey for the

first time. Mindshare for the title remains significantly down from 53% in Spring-19.

• Despite engagement with free-to-play titles, 44% of teens still expect to “buy as

many other games as I used to” compared to 40% in the spring. 25% responded they

would buy fewer games due to availability of free to play titles, down from 31%, while

14% said they would buy more games, flat.

Do you play any of the following free-to-play titles?

% of

Students

Spring

2019

% of

Students

Fall 2019

% of

Students

Spring

2020

% of

Students

Fall 2020

Call of Duty 30% 26% 33% 62%

Fortnite 53% 37% 39% 37%

Apex Legends 31% 20% 22% 17%

PUBG 19% 16% 16% 12%

League of Legends 7% 7% 7% 5%

I Do Not Play Any of These 26% 43% 38% 25%


Teen Mobile Game Trends


DO YOU PLAY GAMES ON YOUR MOBILE PHONE OR TABLET?

• 66% play games on smartphone or tablet, down from 72% in the Spring.

• Drop potentially due to more time spent at home since the Spring.

WHEN PLAYING GAMES ON YOUR MOBILE DEVICE, DO YOU BUY VIRTUAL

GOODS LIKE ENERGY, COINS OR EXTRA LEVELS?

• 27% of teens who play mobile games spend money in game, down only slightly from spring, despite the drop in players overall.

% of

Students

Fall 2015

% of

Students

Spring

2016

% of

Students

Fall 2016

% of

Students

Spring

2017

% of

Students

Fall 2017

% of

Students

Spring

2018

% of

Students

Fall 2018

% of

Students

Spring 2019

% of

Students

Fall 2019

% of

Students

Spring 2020

% of

Students

Fall 2020

Yes 79% 81% 77% 73% 72% 75% 69% 71% 70% 72% 66%

No 21% 19% 23% 27% 28% 25% 31% 29% 30% 28% 34%

% of

Students

Fall 2015

% of

Students

Spring

2016

% of

Students

Fall 2016

% of

Students

Spring

2017

% of

Students

Fall 2017

% of

Students

Spring

2018

% of

Students

Fall 2018

% of

Students

Spring 2019

% of

Students

Fall 2019

% of

Students

Spring 2020

% of

Students

Spring 2020

% of

Students

Fall 2020

Yes 24% 26% 24% 28% 28% 27% 28% 29% 28% 28% 28% 27%

No 76% 74% 76% 72% 72% 73% 72% 71% 72% 72% 72% 73%


Teen

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nd

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nces

Image Source: Nike


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Gap

2.5 years3.5 years3.5 years

Action Sports

BrandsHollisterAbercrombie & Fitch Nike

10 years


SPRING 2019 FALL 2019 SPRING 2020 FALL 20201 Nike 22% 1 Nike 23% 1 Nike 25% 1 Nike 27%

2 American Eagle 9% 2 American Eagle 10% 2 American Eagle 10% 2 American Eagle 8%

3 Adidas 5% 3 Adidas 6% 3 Adidas 5% 3 Adidas 5%

4 Forever 21 5% 4 Hollister 4% 4 Hollister 4% 4 Pacsun 4%

5 Hollister 3% 5 PacSun 4% 5 PacSun 3% 5 Hollister 4%

6 PacSun 3% 6 Forever 21 3% 6 lululemon 3% 6 lululemon 3%

7 Urban Outfitters 3% 7 lululemon 3% 7 Forever 21 3% 7 H&M 3%

8 lululemon 3% 8 Vans 3% 8 Urban Outfitters 3% 8 Urban Outfitters 3%

9 Victoria's Secret 2% 9 H&M 2% 9 H&M 2% 9 Vans 2%

10 H&M 2% 10 Champion 2% 10 Vans 2% 10 Forever 21 2%

Favorite Apparel BrandsAll Teens – See Appendix for more detail broken down by upper vs. average-income teens or male vs. female

Image Source: lululemon.com

• Apparel spending was ~$507/year—down 11% Y/Y; females outspend males by ~$160

• Nike is the No. 1 brand (10 years running) and gains 400 bps Y/Y to 27% share

• American Eagle remains its No. 2 spot but sheds 200 bps share; adidas rounds out the Top 3

• lululemon moves up Y/Y from No. 7 in Fall 2019 to No. 6 in Fall 2020

• H&M moves up from No. 9 to No. 7; Forever 21 moves down from No. 6 to No. 10

• Vans moved from No. 8 to No. 9 Y/Y with a corresponding 100 bps fall in share

• Ralph Lauren drops from No. 11 to No. 18 while Victoria’s Secret falls from No. 13 to 22 Y/Y

• SHEIN moved up to No. 11 with 2% of the vote vs No. 67 last fall with 0.1% of the vote



Favorite Footwear BrandsAll Teens – See Appendix for more detail broken down by upper vs. average-income teens or male vs. female

Image Source: Nike.com

• Footwear spending was $275/year—down 6% Y/Y led by a decline of 600 bps in the male spend in the category

• Female spending was also down 500 bps Y/Y; males now outspend females on footwear by ~$50

• Nike (No. 1) gains substantial share—up 1,000 bps Y/Y to 52% vs. 42% last year; taking share from Vans & adidas

• Vans steady at the No. 2 position but down 400 bps to 16% share; Under Armour drops from No. 9 to No. 11

• Nike, Vans, Adidas, Converse, and Footlocker maintain their rankings order

• Sperry remains out of the Top 10 moving to No. 34 from No. 16 last year

• Crocs remains in the top ten—moving to No. 9 vs. No. 12 in Spring (No. 7 in Fall)

• Dr. Martens moves up 1 rank from Spring to No. 7 and makes the Fall Top 10 for the first time


SPRING 2019 FALL 2019 SPRING 2020 FALL 20201 Nike 41% 1 Nike 42% 1 Nike 47% 1 Nike 52%

2 Vans 20% 2 Vans 20% 2 Vans 20% 2 Vans 16%


4 Converse 5% 4 Converse 4% 4 Converse 4% 4 Converse 4%

5 Foot Locker 3% 5 Foot Locker 3% 5 Foot Locker 3% 5 Foot Locker 2%

6 New Balance 1% 6 Birkenstock 2% 6 New Balance 1% 6 Birkenstock 1%

7 Steve Madden 1% 7 Crocs 1% 7 Birkenstock 1% 7 Dr. Martens 1%

8 Birkenstock 1% New Balance 1% 8 Dr. Martens 1% 8 New Balance 1%

9 DSW 1% 9 Under Armour 1% Steve Madden 1% 9 Crocs 1%

10 Journeys 1% 10 Steve Madden 1% 10 Finish Line 1% 10 Steve Madden 1%


SPRING 2019 FALL 2019 SPRING 2020 FALL 2020

1 Nike / Jordans 14% 1 Nike / Jordans 13% 1 Nike / Jordans 14% 1 Nike / Jordans 15%

2 Athletic Wear 11% 2 Athletic Wear 11% 2 Athletic Wear 11% 2 Athletic Wear 8%

3 Vans 6% 3 Vans 7% 3 Vans 6% 3 Hoodies 6%

4 Jogger Pants 5% 4 Champion 5% 4 Jogger Pants 5% 4 5" Inseam Shorts 4%

5 Supreme 5% 5 Adidas 4% 5 Supreme 5% 5 Shorts 4%

6 Adidas 5% 6 Hoodies 3% 6 Adidas 5% 6 Short Shorts 4%

7 Hoodies 4% 7 Shorts 3% 7 Hoodies 4% 7 Jogger Pants 3%

8 Khakis / Chinos 3% 8 Sweatshirts 3% 8 Khakis / Chinos 3% 8 Flannels 3%

9 Leggings / lululemon 3% 9 Chains 3% 9 Leggings / lululemon 3% 9 Sweatshirts 3%

10 Flannels 3% 10 Short Shorts 2% 10 Flannels 3% 10 Vans 2%

Athletic (In Top 10) 47% Athletic (In Top 10) 47% Athletic (In Top 10) 49% Athletic (In Top 10) 42%

Preppy (In Top 10) 3% Preppy (In Top 10) 2% Preppy (In Top 10) 4% Preppy (In Top 10) 4%

Top Fashion Trends Right NowUpper-Income Teens


SPRING 2019 FALL 2019 SPRING 2020 FALL 20201 Leggings / lululemon 28% 1 Leggings / lululemon 17% 1 Leggings / lululemon 25% 1 Leggings / lululemon 21%

2 Vans 8% 2 Scrunchies 10% 2 Nike / Jordans 9% 2 Jeans 10%

3 Crop Tops 5% 3 Nike / Jordans 6% 3 Crop Tops 8% 3 Nike / Jordans 9%

4 Jeans 5% 4 Baggy / Saggy Pants 6% 4 Jeans 7% 4 Crop Tops 8%

5 Nike / Jordans 4% 5 Jeans 5% 5 Ripped Jeans 4% 5 Baggy / Saggy Pants 4%

6 Ripped Jeans 3% 6 Vans 5% 6 Scrunchies 3% 6 Oversized Tops 3%

7 Hair 2% 7 Crop Tops 4% 7 Vans 3% 7 Ripped Jeans 3%

8 Scrunchies 2% 8 VSCO 4% 8 Brandy Melville 3% 8 Brandy Melville 2%

9 Victoria's Secret 2% 9 Birkenstock 3% 9 VSCO 2% 9 Vans 2%

10 Athletic Wear 2% 10 Ripped Jeans 3% 10 Hoodies 2% 10 Athletic Wear 2%

Athletic (In Top 10) 42% Athletic (In Top 10) 28% Athletic (In Top 10) 39% Athletic (In Top 10) 35%



1 American Eagle 6% 1 American Eagle 8% 1 Brandy Melville 10% 1 SHEIN 7%

2 lululemon 6% 2 lululemon 7% 2 lululemon 9% 2 PacSun 7%

3 Vans 5% 3 Vans 7% 3 Champion 6% 3 lululemon 6%

4 PacSun 5% 4 Brandy Melville 6% 4 Urban Outfitters 5% 4 American Eagle 6%

5 Adidas 5% 5 Champion 5% 5 American Eagle 5% 5 Brandy Melville 6%

Nike 5% 6 Urban Outfitters 4% 6 PacSun 5% 6 Nike 5%

7 Champion 5% 7 PacSun 4% 7 Adidas 4% 7 Hollister 4%

8 Brandy Melville 5% 8 Nike 3% 8 Vans 3% 8 Champion 3%

9 Urban Outfitters 4% 9 Hollister 3% 9 Nike 3% 9 Urban Outfitters 3%

10 Forever 21 4% 10 Adidas 3% 10 Free People 2% 10 H&M 2%

Princess Polly 2%

SHEIN 2%

Top Brands Starting To Be WornUpper-Income Teens



1 Adidas 15% 1 Adidas 15% 1 Champion 10% 1 Adidas 11%

2 Champion 9% 2 Champion 11% 2 Adidas 10% 2 Champion 10%

3 Nike 9% 3 Nike 9% 3 Nike 8% 3 Nike 10%

4 Under Armour 5% 4 Vans 7% 4 Vans 7% 4 Vans 5%

5 Vans 5% 5 Under Armour 4% 5 American Eagle 5% 5 Hollister 4%

6 American Eagle 4% 6 Hollister 3% 6 lululemon 5% 6 lululemon 4%

7 lululemon 4% 7 American Eagle 3% 7 Under Armour 4% 7 American Eagle 4%

8 Ralph Lauren 3% 8 lululemon 2% 8 Hollister 3% 8 Under Armour 3%

9 Vineyard Vines 3% 9 Ralph Lauren 2% 9 Ralph Lauren 3% 9 PacSun 2%

10 Gucci 2% Vineyard Vines 2% 10 Patagonia 2% 10 H&M 2%

Hollister 2%


Top Brands No Longer WornUpper-Income Teens



1 Under Armour 15% 1 Under Armour 21% 1 Under Armour 23% 1 Under Armour 22%

2 Nike 12% 2 Nike 12% 2 Adidas 12% 2 Adidas 12%

3 Gap 10% 3 Adidas 7% 3 Nike 10% 3 Nike 12%

4 Adidas 8% 4 Gap 7% 4 Gap 8% 4 Gap 7%

5 Reebok 5% 5 Reebok 6% 5 Reebok 4% 5 Puma 5%

6 Puma 4% 6 Skechers 5% 6 Puma 4% 6 Reebok 4%

7 Skechers 4% 7 Puma 5% 7 Hollister 3% 7 Hollister 3%

8 Old Navy 3% 8 Old Navy 3% 8 Skechers 3% 8 Skechers 3%

9 American Eagle 2% 9 Vineyard Vines 3% 9 Champion 2% 9 Champion 3%

Hollister 2% 10 Hollister 3% 10 Old Navy 2% 10 Ralph Lauren 2%


1 Justice 30% 1 Justice 38% 1 Justice 30% 1 Justice 26%

2 Aeropostale 9% 2 Aeropostale 7% 2 Aeropostale 8% 2 Hollister 8%

3 Hollister 8% 3 Gap 5% 3 American Eagle 6% 3 Forever 21 7%

4 Abercrombie & Fitch 7% 4 Abercrombie & Fitch 4% 4 Hollister 6% 4 American Eagle 6%

5 Gap 6% 5 Hollister 4% 5 Victoria's Secret 5% 5 Aeropostale 6%

6 American Eagle 5% 6 Forever 21 3% 6 Adidas 5% 6 Gap 5%

7 Forever 21 3% Nike 3% 7 Under Armour 4% 7 Adidas 5%

8 Nike 2% 8 American Eagle 3% 8 Gap 4% 8 Old Navy 4%

9 Old Navy 2% 9 Adidas 3% 9 Old Navy 4% 9 Abercrombie & Fitch 4%

Victoria's Secret 2% Victoria's Secret 3% 10 Abercrombie & Fitch 4% 10 Victoria's Secret 3%


SPRING 2019 FALL 2019 Spring 2020 Fall 2020

1 Michael Kors 28% 1 Michael Kors 27% 1 Michael Kors 25% 1 Louis Vuitton 19%

2 Kate Spade 14% 2 Louis Vuitton 14% 2 Louis Vuitton 16% 2 Michael Kors 18%

3 Louis Vuitton 11% 3 Coach 11% 3 Kate Spade 12% 3 Coach 13%

4 Coach 11% 4 Kate Spade 11% 4 Coach 12% 4 Kate Spade 12%

5 Gucci 8% 5 Gucci 9% 5 Gucci 6% 5 Gucci 6%

6 Vera Bradley 4% 6 Vera Bradley 5% 6 Chanel 4% 6 Chanel 5%

7 Chanel 3% 7 Chanel 3% 7 Vera Bradley 3% 7 Vera Bradley 3%

8 Tory Burch 1% 8 Steve Madden 2% 8 Steve Madden 2% 8 Prada 3%

9 Calvin Klein 1% 9 Calvin Klein 1% 9 Guess 2% 9 Steve Madden 1%

10 Guess 1% 10 Guess 1% 10 Prada 1% 10 Target 1%

Tommy Hilfiger 1% Tommy Hilfiger 1%

Favorite Handbag Brands

Image Source: MichaelKors.com

All Female Teens


• Female teens self-report spend of $87/year on handbags; this is a new survey low and is down 3% Y/Y

• Handbag peak spend was from Spring 2006 when teens spent $197/year on the category

• Louis Vuitton takes the No. 1 spot for the first time in our survey history, unseating Michael Kors

• Michael Kors falls from No. 1 to No. 2—dropping 900 bps year-over-year

• Coach returns to the Top 3—gaining 200 bps share Y/Y; Kate Spade stands at No. 4 with 100 bps gain Y/Y

• Gucci, Chanel and Prada all in the Top 10, although Gucci’s share falls 300 bps while Chanel and Prada both gain

• Target rounds out the Top 10 list for the first time since Spring 2017 with 1% of the votes


13%

17% 17%

23%

28% 30% 31%

36%

64%

60%62%

57%

53%

49% 49%

43%

0%

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Spring 2017 Fall 2017 Spring 2018 Fall 2018 Spring 2019 Fall 2019 Spring 2020 Fall 2020

Pre

ferr

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db

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nd

s -

All

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male

Teen

s (

%

Min

ds

hare

)

Michael Kors +

Kate Spade + Coach

European Luxury Brands Continue To Gain Teen Mindshare

• Accessible luxury, as measured by Michael Kors, Kate Spade & Coach, shed 600 bps of share Y/Y.

• In Fall 2020, there were 18 luxury brands listed in our survey—this was slightly down from 20 brands in Fall 2019

• European luxury brands in total accounted for 36% of mindshare among preferred handbag brands, an increase of

600 bps Y/Y and well above the level of 13% from Spring 2017. Four luxury brands ranked in the top 10 this time.

• While we think it is highly unlikely that teens are purchasing handbags from these brands in the primary market, we

believe teens are responding favorably to the GenZ/Millennial-appropriate marketing direction that LVMH and Kering

in particular are taking. Too, through robust development of secondary platforms like StockX and The RealReal, teens

now have access to luxury for less.



Favorite Watch Brand

• 88% of upper-income teens do not plan to purchase a watch in the next six months vs. 84% in Spring & 79% last year

• Rolex, still teens’ No. 1 watch brand, cedes share by 600 bps year-over-year

• Apple, No. 2, gained 1,000 bps of share Y/Y (now 35%) in survey vs. 25% just one year ago

• Fitbit has steadily moved up in our data series—now No. 4 at 2% share

• Michael Kors’ watch rank and share continue to fall, moving from No. 4 last year to No. 10 at 1% share

Upper-Income Teens


FALL 2018 SPRING 2019 FALL 2019 SPRING 2020 FALL 2020

1 Rolex 42% 1 Rolex 42% 1 Rolex 39% 1 Rolex 36%

2 Apple 22% 2 Apple 25% 2 Apple 30% 2 Apple 35%

3 Michael Kors 5% 3 Fossil 3% 3 Fossil 3% 3 Fossil 3%

4 Fossil 4% 4 Michael Kors 3% 4 Fitbit 2% 4 Fitbit 2%

5 Fitbit 2% 5 Casio 2% 5 Casio 2% 5 Casio 2%

Patek Philippe 2% 6 Gucci 2% Garmin 2% 6 Garmin 1%

7 Casio 2% 7 Richard Mille 2% 7 Michael Kors 2% 7 Gucci 1%

8 Gucci 2% 8 Fitbit 1% 8 Gucci 1% 8 Patek Philippe 1%

9 Audemars Piguet 1% 9 Garmin 1% Patek Philippe 1% 9 Tissot 1%

10 MVMT 1% 10 Nixon 1% 10 Seiko 1% 10 Michael Kors 1%

Patek Philippe 1% Tag Heuer 1%


SPRING 2019 FALL 2019 SPRING 2020 FALL 20201 Ulta 33% 1 Ulta 38% 1 Ulta 39% 1 Ulta 42%

2 Sephora 31% 2 Sephora 26% 2 Sephora 24% 2 Sephora 20%

3 Walmart 8% 3 Walmart 8% 3 Target 8% 3 Target 11%

4 Target 6% 4 Target 7% 4 Walmart 8% 4 Walmart 8%

5 Amazon 4% 5 Amazon 5% 5 Amazon 4% 5 Amazon 5%

6 Walgreens 1% 6 CVS 2% 6 Walgreens 2% 6 CVS 1%

7 CVS 1% 7 MAC 1% 7 Glossier 1% 7 Walgreens 1%

8 Morphe 1% 8 Morphe 1% 8 CVS 1% 8 Glossier 1%

9 MAC 1% 9 Glossier 1% 9 Macy's 1% 9 Ipsy 1%

10 Glossier 1% Walgreens 1% 10 Morphe 1% 10 Morphe 1%

Beauty: Favorite Shopping Destinations

• 86% of teens prefer to shop for beauty in-store vs. online; that said, this fell 400 bps since Spring

• Ulta strengthens its position as the No. 1 preferred beauty destination at 42% share vs. 38% last year (+400 bps Y/Y)

• Sephora stays at No. 2 but moves to 20% share vs. 26% last year (-600 bps Y/Y)

• Target maintains the No. 3 spot after overtaking Walmart last spring with a corresponding 400 bps share gain Y/Y

• The subscription based beauty service Ipsy broke into the top 10 for the first time at No. 9 receiving 1% of the vote

• We saw minor share shifts between Walgreens, CVS and Glossier & Morphe; Macy’s fell to No. 17

All Female Teens



SPRING 2019 FALL 2019 SPRING 2020 FALL 20201 Neutrogena 18% 1 Neutrogena 18% 1 Neutrogena 16% 1 CeraVe 28%

2 Mario Badescu 7% 2 Mario Badescu 8% 2 Mario Badescu 10% 2 Neutrogena 10%

3 Clean & Clear 6% 3 Clean & Clear 8% 3 Cetaphil 7% 3 Cetaphil 10%

4 Clinique 6% 4 Cetaphil 6% 4 Clean & Clear 6% 4 The Ordinary 8%

5 Cetaphil 6% 5 Clinique 5% 5 Clinique 4% 5 Clean & Clear 3%

6 Proactiv 5% 6 Proactiv 4% 6 Proactiv 3% 6 Clinique 3%

7 Biore 2% 7 Aveeno 2% 7 CeraVe 3% 7 Curology 2%

8 CeraVe 2% Biore 2% 8 Curology 2% 8 Mario Badescu 2%

Olay 2% 9 Burt's Bees 2% 9 Olay 2% 9 Proactiv 2%

10 Aveeno 2% 10 CeraVe 2% 10 Aveeno 2% 10 Rodan & Fields 1%

Biore 2%

Beauty: Favorite Skincare Brands

• Skincare spending for all female teens was $101/year—down 3% Y/Y and down 4% vs. multi-survey avg. of $106

• Skincare spending exceeded cosmetics spending for the first time in our survey history

• CeraVe strongly jumped to the No. 1 position having been No. 10 last Fall & No. 7 in Spring, likely a result of high-

levels of engagement on TikTok

• Mario Badescu dropped from their stable No. 2 position to No. 8 with 2% of the vote, down 600 bps Y/Y—a nod that

VSCO girls trend has slowed

• The Ordinary shot to No. 4 while Rodan & Fields broke into the Top 10; Curology furthered its upward movement

• Clinique’s share has dropped 100 bps per season since Spring 2019 and now represents 3% of teen share

• Aveeno dropped out of the top 10 to No. 11 while Biore dropped from No 7 last fall to No. 22 this Fall

All Female Teens



SPRING 2019 FALL 2019 SPRING 2020 FALL 20201 Tarte 11% 1 Tarte 13% 1 Tarte 11% 1 Tarte 7%

2 Too Faced 8% 2 Too Faced 9% 2 Maybelline 9% 2 e.l.f. 6%

3 MAC 7% 3 Maybelline 7% 3 Too Faced 7% 3 Maybelline 6%

4 Morphe 7% 4 e.l.f. 6% 4 e.l.f. 5% 4 Morphe 5%

5 Maybelline 6% 5 Morphe 6% Fenty Beauty 5% 5 Too Faced 4%

6 e.l.f. 5% 6 MAC 6% Morphe 5% 6 MAC 4%

7 Anastasia Beverly Hills 5% 7 Fenty Beauty 5% 7 MAC 5% 7 L'Oreal 3%

8 Fenty Beauty 5% 8 Sephora 5% 8 CoverGirl 4% 8 Fenty Beauty 3%

Sephora 5% 9 Anastasia Beverly Hills 4% 9 L'Oreal 4% Sephora 3%

10 CoverGirl 5% 10 L'Oreal 4% 10 Sephora 4% 10 Glossier 3%

Beauty: Favorite Cosmetics Brands

• Female spending on cosmetics dropped to $84/year, a 20% contraction Y/Y and 51% since the peak of $173 in 2017

• Spending levels are now 31% below the multi-survey average of $124/year—we believe further pressured by CV-19

• Tarte (Kose-owned) remained the top-ranked cosmetics brand (6th consecutive survey) but decreased 400 bps to 7%

• e.l.f. moved up nicely from No. 4 to No. 2—its highest rank we have seen to date in our survey

• Too Faced dropped from the No. 2 spot last Fall to No. 5; MAC kept its No. 6 rank, albeit with 200 bps share loss

• CoverGirl dropped out of the Top 10 & Anastasia Beverly Hills remained out of the Top 10

• Glossier came into the Top 10 for the first time (among all female teens)

All Female Teens



Beauty: Shopping Channel Trends Favor Specialty

• 64% of UI teens prefer specialty formats for beauty shopping – down from 72% LY despite ULTA’s significant gain

• Aggregate legacy channel (CVS, Macy’s, TGT, WMT, etc.) increased 300 bps share from 15% to 18% led by Target

• Digital pure-plays, led by Amazon and followed by Glossier, captured 8% share—doubled Y/Y from 4%

• When asked if they or their household purchase beauty/personal care on AMZN, 30% say “Yes” vs. 23% last Spring

Favorite Beauty Shopping Destinations – Upper-Income Female Teens



Cosmetics Behavior Evolving Spurred By PandemicAll Female Teens

• We asked female teens if they wear makeup “everyday”, “sometimes” or “never”

• We do not believe the makeup category is dead; however, we are seeing engagement in the category evolve. We

have seen “everyday” makeup wearers rotate into “sometimes”; this dynamic shifted even further as a result of CV-19

• In Fall 2020, 55% of female teens indicated they wear makeup just “sometimes”, up 1,100 bps from Fall 2019

• We also saw females who “never” wear make up move to 23%--ahead of the “everyday” wearers (22%)



Beauty: Clean Beauty Highlights


Look At Ingredients In Their Beauty/ Personal Care Products

(vs. 47% in Fall 2019)57%

78%

28%

Willing To Spend More For “Clean” Or Natural Beauty

(vs. 75% in Fall 2019)

Average Pricing Premium For “Clean” Or Natural

(vs. 29% in Fall 2019)

All Female Teens


Beauty Industry Is Hot For Influencers

• ~84% of females use online influencers as a source of discovery for beauty brands & trends—a further gain from LY

• Word-of-mouth (“Friends”) remains the second most important decision influence when making a beauty purchase


All Female Teens


SPRING 2019 FALL 2019 SPRING 2020 FALL 20201 Amazon 50% 1 Amazon 52% 1 Amazon 53% 1 Amazon 54%

2 Nike 5% 2 Nike 4% 2 Nike 5% 2 SHEIN 5%

3 Urban Outfitters 4% 3 American Eagle 3% 3 Urban Outfitters 2% 3 Nike 5%

4 American Eagle 3% 4 Urban Outfitters 2% 4 SHEIN 2% 4 PacSun 3%

5 Fashion Nova 2% 5 eBay 2% lululemon 2% 5 lululemon 2%

6 lululemon 2% PacSun 2% 6 PacSun 2% 6 Urban Outfitters 2%

PacSun 2% 7 lululemon 2% 7 American Eagle 2% 7 American Eagle 2%

8 eBay 1% 8 Fashion Nova 2% 8 Princess Polly 2% 8 eBay 1%

Forever 21 1% 9 Zumiez 1% eBay 2% Romwe 1%

10 Brandy Melville 1% 10 Adidas 1% 10 Brandy Melville 1% 10 Depop 1%Hollister 1% Princess Polly 1%

Favorite Websites For Shopping

• Amazon’s dominance continues as 54% of teens say this is their favorite website to shop on—up from 52% in Fall ‘19

• 90% of teens claim to shop online; of these online shoppers, 94% claim to shop on Amazon

• SHEIN made a notable jump in our survey, unseating Nike as the No. 2 preferred website

• lululemon moved up from No. 7 to No. 5 and Depop moved into the Top Ten for the first time

~50% Of 2015-2019 Softlines Dollar Growth In North America

Upper-Income Teens



Amazon Dominates Teen Online Shopping Mindshare


• Amazon maintained its

upward trajectory with 54%

of upper-income teens

naming it as their favorite

e-commerce site—up from

52% last year.

• Among females, Amazon

captured 44% unchanged

from LY. SHEIN is now No.

2 at 11% share (vs. 3%

LY). Fashion Nova

remained out of the Top 10

& Depop (secondhand)

moved up to No. 9.

• Amazon captured 63% of

the overall male vote this

Fall up 500 bps Y/Y.

StockX moved up to No. 5

vs. No. 7 LY. GOAT

remained No. 8 &

lululemon moved into the

Top 10.

All


2 Nike 5% 2 Nike 4% 2 Nike 5% 2 SHEIN 5%

3 Urban Outfitters 4% 3 American Eagle 3% 3 Urban Outfitters 2% 3 Nike 5%

4 American Eagle 3% 4 Urban Outfitters 2% 4 SHEIN 2% 4 PacSun 3%

5 Fashion Nova 2% 5 eBay 2% lululemon 2% 5 lululemon 2%

6 lululemon 2% PacSun 2% 6 PacSun 2% 6 Urban Outfitters 2%

PacSun 2% 7 lululemon 2% 7 American Eagle 2% 7 American Eagle 2%

8 eBay 1% 8 Fashion Nova 2% 8 Princess Polly 2% 8 eBay 1%

Forever 21 1% 9 Zumiez 1% eBay 2% Romwe 1%

10 Brandy Melville 1% 10 Adidas 1% 10 Brandy Melville 1% 10 Depop 1%Hollister 1% Princess Polly 1%

Females


2 Urban Outfitters 7% 2 American Eagle 6% 2 SHEIN 5% 2 SHEIN 11%

3 American Eagle 7% 3 Urban Outfitters 4% 3 Urban Outfitters 5% 3 lululemon 4%

4 Fashion Nova 4% 4 lululemon 3% 4 lululemon 4% PacSun 4%

5 lululemon 4% 5 Fashion Nova 3% 5 American Eagle 4% 5 American Eagle 3%

6 Forever 21 3% 6 SHEIN 3% 6 Princess Polly 3% 6 Urban Outfitters 3%

7 Brandy Melville 3% 7 Brandy Melville 3% 7 PacSun 3% 7 Romwe 2%

Zaful 3% 8 PacSun 2% 8 Brandy Melville 3% 8 Princess Polly 2%

9 PacSun 2% 9 Hollister 2% 9 Romwe 2% 9 Depop 2%

Romwe 2% 10 Forever 21 2% 10 Nike 2% 10 Brandy Melville 2%Zaful 2% Etsy 2%

Males


1 Amazon 59% 1 Amazon 58% 1 Amazon 63% 1 Amazon 63%


3 eBay 2% 3 eBay 3% 3 eBay 3% 3 eBay 2%

4 Adidas 2% 4 PacSun 2% 4 StockX 2% 4 PacSun 2%

5 Supreme 1% Zumiez 2% 5 PacSun 2% 5 StockX 2%

6 Foot Locker 1% 6 Adidas 2% 6 Adidas 1% 6 Urban Outfitters 1%

PacSun 1% 7 StockX 2% 7 Tilly's 1% 7 Adidas 1%

8 Dick's Sporting Goods 1% 8 GOAT 1% 8 Grailed 1% 8 GOAT 1%

9 StockX 1% 9 Dick's Sporting Goods 1% 9 7 Sites Tied 1% lululemon 1%

10 Urban Outfitters 1% Supreme 1% Tillys 1%


Closer Look At Amazon Prime Growth

Source: Piper Sandler Cos, U.S. Census Bureau

• Prime Adoption is at 84% vs. 78% in Fall 2019 (y/y). Adoption among the less than $21K income bracket saw the

biggest gains y/y (+14ppts), while $41K-$68K and $68K-$112K respondents both increased 7ppts y/y.

• Based on responses proportionate to income brackets, we estimate US Prime households close to 93.5 million, up

from 88M last fall and consistent with Amazon commentary in January of >150M global prime members, up from

>100M in March ’18.



Restaurant Spending TrendsFood Spending Tied For Largest Piece of Teen Wallet

• In the current cycle, teens’ spending on restaurants accounted for 21% of the overall Upper Income wallet. This level

was uncharacteristically in-line with (vs. typically a premium to) clothing spend at 21% and represents the lowest level

of spending since Fall 2014.

• That said, restaurant spending has been on a steady march higher in terms of accounting for an increasing proportion

of the broader teen wallet, over time. Although the near-term trend has experienced disruption we believe the

underpinnings of teens’ longstanding preference for restaurant and dining out occasions will rebound as mobility and

behavioral spending patterns return.



Restaurant Spending TrendsContinued Preference For Limited Service Brands

• Teens continue to overwhelmingly prefer limited service restaurant brands relative to full service brands.

• This trend was originally fueled by an overarching preference for social experiences with friends and

occasions/brands that offer more compelling relative affordability (which we view as a combination of food quality,

variety, and lower levels of absolute pricing).



Favorite Restaurants

PREFERRED BRANDS (UPPER INCOME)

PREFERRED BRANDS (AVERAGE INCOME)



Favorite Snack Brand

Favorite Snack Brand

• The top six brands remain favorites as Lays, Goldfish, Cheez-It, Doritos, Cheetos, and Oreo hold their positions

• We saw gains for Lays & Goldfish both hitting double-digit penetration this Fall; Cheez-It gained 200 bps vs. Spring

• The bottom rankings within the top-ten list did see changes: both Pringles and Takis move up; Welch’s enters the top-

ten list; Little Debbie moves down by two spots & Nature Valley falls out of the Top 10

FALL 2019 SPRING 2020 FALL 2020

1 Lays (PEP) 10% 1 Lays (PEP) 9% 1 Lays (PEP) 10%

2 Goldfish (CPB) 9% 2 Goldfish (CPB) 8% 2 Goldfish (CPB) 10%

3 Cheez-It (K) 8% 3 Cheez-It (K) 7% 3 Cheez-It (K) 9%

4 Doritos (PEP) 6% 4 Doritos (PEP) 6% 4 Doritos (PEP) 6%

5 Cheetos (PEP) 5% 5 Cheetos (PEP) 6% 5 Cheetos (PEP) 5%

6 Takis (Bimbo) 3% 6 Oreo (MDLZ) 3% 6 Oreo (MDLZ) 3%

7 Little Debbie (private) 3% 7 Little Debbie (private) 2% 7 Takis (Bimbo) 3%

8 Oreo (MDLZ) 3% 8 Nature Valley (GIS) 2% 8 Pringles (K) 2%

9 Nature Valley (GIS) 2% 9 Takis (Bimbo) 2% 9 Little Debbie (private) 2%

10 Pringles (K) 2% 10 Pringles (K) 2% 10 Welch's (private) 2%



Snacking Trends


0%

10%

20%

30%

40%

50%

60%

70%

We asked teens if they plan to eat more, less or the same of their favorite snack brand over the next 6 months; the above

chart shows the net of teens’ intentions (the ones who plan to eat more or the same amount for each brand, minus those

eating less)

• Goldfish and Cheez-It had the strongest results, with over 60% net who plan to eat more or the same amount

• Little Debbie has the largest percent of people who say they plan to eat less of a Top 10 brand

• For all of the brands in the Top 10, the net results (% who said “more” minus % who said “less”, excluding “the same”)

is negative, likely because consumers tend to say they will plan to eat less of something that they believe is unhealthy


Plant Based Meat Trends

Do you

consume plant

based meat?

Of those who answered

Yes, Impossible Foods

(37%) had been tried

most by teens, followed

by Beyond Meat (33%),

Morningstar Farms

(22%), and Other (8%)

Preferences for those

who have not yet tried

plant based meat:

18% of teens

consume plant

based meat, while

82% do not


82%

18%

No Yes

What plant

based meat

brands have

you tried?37%

33%

22%

8%

Impossible Burger Beyond Meat

Morningstar Farms Other/unsure

65%

35%

Not interested Open

• Of the 82% who have not

yet tried it, 65% are not

open to trying it and prefer

real meat, while 35% are

open to trying it

• Of those who are open to

trying it, 90% said they

haven’t had a chance to

try it yet, while 10% said it

is too expensive

Willingness to try plant based meat is higher for teens

• Of the 82% who have not yet tried plant based meat,

35% are open to trying it

• In our February 2020 survey of 3,500 US adults

across all ages, only 20% of those who had not tried

plant based meat were open to trying it

• This suggests a greater openness to plant based meat

from younger consumers, likely helping drive sustainable

growth tailwinds for the category


Ap

pen

dic

es Contents

• Project Framework & Key Demographics

• What Is In A Teen’s Wallet Today?

• Teen Spending Breakdown By Income Demographic

• Teen Spending Breakdown By Gender

• Teen Shopping Channel Preference

• What Factors Matter Most In Making A Clothing Purchase

• Favorite Clothing Brands (All Teens)

• Favorite Footwear Brands (All Teens)

• Favorite Athletic Clothing Brands (UI Teens)

• Favorite Athletic Clothing Brands (AI Teens)

• Favorite Athletic Footwear Brands (UI Teens)

• Favorite Athletic Footwear Brands (AI Teens)

• Social Media Platform Historic Time Series

• Teen Daily Video Consumer Time Series

• Meet Our Senior Analyst Team



Project Framework & Key Demographics


ALL TEENS Fall 2020 Spring 2020 Fall 2019 Spring 2019 Fall 2018 Spring 2018 Fall 2017 Spring 2017

Teens Surveyed 9,800 5,200 9,500 8,000 8,600 6,000 6,100 5,500

Gender - Female 48% 49% 45% 46% 44% 45% 46% 45%

Gender - Male 51% 50% 54% 54% 56% 55% 54% 55%

Average Age 15.8 16.2 15.8 16.3 15.9 16.4 15.9 16.4

Percentage Of Teens Part-Time Employed 33% 37% 35% 38% 36% 40% 35% 39%

Average Household Income $67,500 $65,600 $65,400 $67,700 $68,300 $66,296 $66,100 $66,100

UPPER-INCOME TEEN SURVEY Fall 2020 Spring 2020 Fall 2019 Spring 2019 Fall 2018 Spring 2018 Fall 2017 Spring 2017

Teens Surveyed - Upper Income 2,300 1,300 2,100 2,000 2,400 1,400 1,500 1,400

Gender - Female 47% 47% 43% 44% 42% 43% 43% 42%

Gender - Male 52% 52% 56% 56% 58% 57% 57% 58%

Average Age 15.9 16.2 15.8 16.2 16.0 16.4 15.9 16.4



AVERAGE-INCOME TEEN SURVEY Fall 2020 Spring 2020 Fall 2019 Spring 2019 Fall 2018 Spring 2018 Fall 2017 Spring 2017

Teens Surveyed - Average Income 7,500 3,900 7,400 6,100 6,200 4,600 4,600 4,100

Gender - Female 48% 49% 45% 47% 45% 45% 47% 46%

Gender - Male 51% 49% 53% 53% 55% 55% 53% 54%

Average Age 15.7 16.2 15.8 16.3 15.9 16.4 15.9 16.4




Teen Spending Breakdown By Income Demographic


Spending by Category - All Teens Fall 2020 Spring 2020 Fall 2019 Spring 2019 Fall 2018 Spring 2018 Fall 2017 Spring 2017

Video Games / Systems 10% 8% 9% 8% 8% 8% 7% 8%

Music 2% 2% 3% 3% 3% 3% 3% 3%

Movies 2% 1% 1% 2% 2% 2% 2% 2%

Electronics / Gadgets 7% 7% 7% 7% 7% 7% 8% 7%

Clothing 21% 21% 21% 20% 21% 20% 20% 19%

Fashion Accessories 4% 3% 3% 3% 3% 4% 3% 3%

Personal Care 7% 6% 6% 6% 6% 6% 6% 6%

Shoes 8% 7% 9% 8% 8% 8% 8% 8%

Food 21% 25% 23% 23% 24% 24% 22% 24%

Concerts / Movies / Sporting Events 3% 4% 5% 5% 5% 4% 5% 6%

Car 7% 8% 6% 8% 7% 9% 9% 9%

Books / Magazines 2% 1% 1% 1% 1% 1% 1% 1%

Furniture / Room Accessories 3% 2% 2% 2% 2% 2% 2% 2%

Other 3% 3% 4% 3% 3% 3% 4% 4%

How I Live (aka Teenager Basic Needs) 21% 20% 20% 21% 20% 21% 22% 21%

How I Look (aka the Selfie Budget) 40% 38% 39% 37% 38% 38% 38% 36%

How We Have Fun (aka the Social Budget) 39% 43% 42% 42% 42% 42% 41% 43%

SPENDING BY CATEGORY (UPPER-INCOME, ALL TEENS)


Teen Spending Breakdown By Income Demographic

SPENDING BY CATEGORY (AVERAGE-INCOME, ALL TEENS)


Spending by Category - All Teens Fall 2020 Spring 2020 Fall 2019 Spring 2019 Fall 2018 Spring 2018 Fall 2017 Spring 2017

Video games / systems 11% 9% 9% 9% 9% 9% 8% 8%

Music 2% 3% 3% 3% 3% 3% 3% 3%

Movies 2% 2% 2% 2% 2% 2% 2% 2%

Electronics / gadgets 8% 7% 8% 7% 8% 7% 7% 7%

Clothing 20% 19% 20% 19% 20% 19% 20% 19%

Fashion Accessories 4% 4% 4% 4% 4% 3% 4% 3%

Personal Care 7% 7% 7% 7% 7% 7% 7% 7%

Shoes 9% 9% 10% 9% 10% 9% 10% 9%

Food 19% 21% 19% 20% 20% 21% 20% 22%

Concerts/Movies/Sporting events 3% 4% 4% 4% 5% 4% 5% 4%

Car 8% 8% 8% 8% 8% 10% 8% 9%

Books/magazines 1% 1% 1% 2% 1% 1% 1% 2%

Furniture / room accessories 3% 3% 3% 2% 2% 2% 2% 2%

Other 4% 3% 3% 3% 3% 3% 4% 4%

How I Live (aka Teenager Basic Needs) 23% 22% 21% 21% 21% 22% 22% 21%

How I Look (aka the Selfie Budget) 40% 40% 40% 39% 40% 39% 40% 39%

How We Have Fun (aka the Social Budget) 38% 39% 38% 40% 39% 40% 39% 41%


Teen Spending Breakdown By Gender

SPENDING BY CATEGORY (UPPER-INCOME MALES)

SPENDING BY CATEGORY (UPPER-INCOME FEMALES)


Spending by Category - Male Fall 2020 Spring 2020 Fall 2019 Spring 2019 Fall 2018 Spring 2018 Fall 2017 Spring 2017


Music / Movies (DVD/CD) 3% 4% 4% 5% 4% 5% 5% 5%


Clothing 16% 16% 17% 16% 17% 16% 17% 16%

Accessories / personal care / cosmetics 5% 4% 5% 4% 5% 5% 5% 4%

Shoes 9% 8% 10% 9% 9% 9% 9% 8%

Food 21% 25% 23% 23% 24% 24% 22% 24%

Concerts/Movies/Sporting Events 3% 4% 5% 5% 5% 4% 5% 5%

Car 8% 9% 8% 9% 8% 11% 10% 10%

Books / magazines 2% 1% 1% 1% 1% 1% 1% 1%


Other 5% 4% 5% 5% 4% 4% 4% 5%

Total Fashion (Clothing, Access & Footwear) 29% 28% 31% 29% 31% 30% 31% 28%

Spending by Category - Female Fall 2020 Spring 2020 Fall 2019 Spring 2019 Fall 2018 Spring 2018 Fall 2017 Spring 2017


Music / Movies (DVD/CD) 4% 3% 4% 4% 5% 5% 5% 5%


Clothing 27% 26% 27% 25% 26% 25% 24% 25%

Accessories / personal care / cosmetics 17% 16% 15% 16% 16% 17% 16% 16%

Shoes 7% 6% 8% 7% 7% 7% 7% 7%

Food 21% 25% 23% 24% 23% 25% 22% 23%

Concerts/Movies/Sporting Events 3% 5% 6% 5% 5% 5% 6% 6%

Car 5% 7% 4% 7% 6% 7% 7% 7%

Books / magazines 2% 1% 2% 2% 2% 1% 2% 2%


Other 2% 2% 2% 2% 2% 2% 3% 2%

Total Fashion (Clothing, Access & Footwear) 51% 48% 49% 48% 48% 49% 47% 48%


Teen Shopping Channel Preference


ALL TEENS Fall 2020 Spring 2020 Fall 2019 Spring 2019 Fall 2018 Spring 2018 Fall 2017 Spring 2017

Specialty 21% 23% 23% 24% 24% 25% 23% 24%

Major Chain / Dept Store 12% 14% 13% 13% 15% 13% 15% 16%

Off-Price 10% 12% 11% 11% 11% 11% 12% 11%

Discount 13% 13% 12% 12% 12% 13% 13% 12%

Outlet 14% 14% 16% 14% 15% 14% 15% 14%

Catalogs 1% 1% 2% 2% 5% 7% 6% 6%

Online Only eTailers 22% 22% 23% 24% 18% 19% 17% 17%

Secondhand 8% - - - - - - -

ALL FEMALES Fall 2020 Spring 2020 Fall 2019 Spring 2019 Fall 2018 Spring 2018 Fall 2017 Spring 2017

Specialty 24% 28% 31% 32% 30% 30% 29% 31%


Off-Price 11% 14% 13% 13% 14% 14% 15% 13%

Discount 15% 16% 14% 14% 14% 16% 15% 15%

Outlet 11% 12% 15% 12% 12% 11% 12% 12%

Mail order 1% 1% 1% 1% 5% 6% 5% 6%


Secondhand 11% - - - - - - -

ALL MALES Fall 2020 Spring 2020 Fall 2019 Spring 2019 Fall 2018 Spring 2018 Fall 2017 Spring 2017

Specialty 17% 19% 17% 18% 20% 21% 18% 20%


Off-Price 8% 9% 10% 9% 9% 8% 10% 9%

Discount 10% 12% 11% 11% 10% 10% 11% 10%

Outlet 17% 16% 17% 16% 17% 16% 17% 16%

Mail order 1% 1% 2% 2% 6% 7% 6% 6%


Secondhand 5% - - - - - - -

Upper-Income Teens


What Factors Matter Most In Making A Clothing PurchaseAll Teens

1 Quality 1.9

2 Price 2.2

3 Brand 3.4

4 Trend 3.5

5 Sustainability 4.1

• In Fall 2019, we asked teens to rank what matters most to them when making a clothing purchase

• Quality received the highest average score at 1.9 (teens had to rank between 1 – 5; 1 being the most important)

• Among upper-income males, quality ranked higher than the overall survey average

• Among upper-income females, sustainability ranked an average score of 3.9—a tie with brand



Favorite Clothing Brands (All Teens)





3 American Eagle 5% 3 American Eagle 5% 3 American Eagle 4% 3 American Eagle 4%

4 Hollister 3% 4 Hollister 4% 4 Ralph Lauren 3% 4 Hollister 3%

5 Ralph Lauren 3% 5 Vans 3% 5 Hollister 3% 5 Vans 3%

6 Vans 3% 6 Ralph Lauren 3% 6 Vans 3% 6 H&M 3%

7 Gucci 3% 7 Champion 3% 7 Champion 3% 7 Pacsun 2%

8 H&M 2% 8 Under Armour 3% 8 H&M 2% 8 Under Armour 2%

9 PacSun 2% 9 PacSun 2% 9 PacSun 2% 9 Champion 2%

10 Supreme 2% 10 Gucci 2% 10 Under Armour 2% 10 Ralph Lauren 2%


1 American Eagle 13% 1 American Eagle 15% 1 American Eagle 15% 1 Nike 14%

2 Nike 10% 2 Nike 11% 2 Nike 13% 2 American Eagle 12%

3 Forever 21 9% 3 Forever 21 7% 3 Forever 21 6% 3 Pacsun 7%

4 Urban Outfitters 5% 4 PacSun 5% 4 lululemon 5% 4 lululemon 6%

5 Victoria's Secret 5% 5 Hollister 5% 5 Hollister 5% 5 Urban Outfitters 5%

6 PacSun 4% 6 lululemon 5% 6 PacSun 4% 6 Hollister 4%

7 lululemon 4% 7 Victoria's Secret 3% 7 Urban Outfitters 4% 7 Forever 21 3%

8 Hollister 4% 8 H&M 3% 8 Brandy Melville 3% 8 SHEIN 3%

9 H&M 2% 9 Urban Outfitters 3% 9 Victoria's Secret 3% 9 H&M 3%

10 rue 21 2% 10 rue 21 2% 10 H&M 3% 10 Brandy Melville 2%


Favorite Footwear Brands (All Teens)






4 Foot Locker 3% 4 Foot Locker 3% 4 Foot Locker 3% 4 Foot Locker 3%

5 Converse 2% 5 New Balance 1% 5 Converse 2% 5 Converse 1%

6 New Balance 2% 6 Under Armour 1% 6 New Balance 2% 6 New Balance 1%

7 Under Armour 1% 7 Converse 1% 7 Under Armour 1% 7 Under Armour 1%

8 Sperry Top-Sider 1% 8 Champs Sports 1% Finish Line 1% 8 StockX 0%

9 Finish Line 1% 9 Crocs 1% 9 Sperry Top-Sider 1% 9 Ariat 0%

10 Champs Sports 1% 10 Finish Line 1% 10 Asics 1% 10 Puma 0%




3 Adidas 9% 3 Adidas 7% 3 Adidas 6% 3 Converse 6%

4 Converse 8% 4 Converse 6% 4 Converse 6% 4 Adidas 5%

5 Steve Madden 2% 5 Birkenstock 4% 5 Foot Locker 2% 5 Birkenstock 2%

6 Foot Locker 2% 6 Foot Locker 2% 6 Birkenstock 1% 6 Foot Locker 2%

7 Birkenstock 2% 7 Steve Madden 2% 7 Steve Madden 1% 7 Dr. Martens 2%

8 DSW 2% 8 Crocs 1% 8 Dr. Martens 1% 8 Steve Madden 1%

9 Journeys 1% 9 DSW 1% DSW 1% 9 Crocs 1%

10 Payless ShoeSource 1% 10 Journeys 1% 10 Journeys 1% 10 DSW 1%


Favorite Athletic Clothing Brands (UI Teens)




2 lululemon 15% 2 lululemon 13% 2 lululemon 19% 2 lululemon 16%



5 Athleta 1% 5 Champion 1% 5 The North Face 2% 5 Athleta 1%





4 Athleta 2% 4 Under Armour 3% 4 Under Armour 2% 4 Athleta 2%

Under Armour 2% 5 Athleta 2% 5 Fabletics 2% 5 Under Armour 2%






5 Patagonia 1% 5 The North Face 1% 5 The North Face 2% 5 GymShark 1%


Favorite Athletic Clothing Brands (AI Teens)





3 Under Armour 7% 3 Under Armour 7% 3 lululemon 6% 3 lululemon 7%

4 lululemon 5% 4 lululemon 5% 4 Under Armour 6% 4 Under Armour 6%

5 The North Face 1% 5 The North Face 1% 5 The North Face 1% 5 The North Face 1%






5 The North Face 1% 5 The North Face 1% 5 The North Face 1% 5 The North Face 1%



2 Adidas 12% 2 Adidas 11% 2 lululemon 11% 2 lululemon 13%

3 lululemon 10% 3 lululemon 10% 3 Adidas 9% 3 Adidas 8%


5 Fabletics 1% 5 Fabletics 1% 5 GymShark 1% 5 Fabletics 1%


Favorite Athletic Footwear Brands (UI Teens)





3 New Balance 3% 3 New Balance 2% 3 New Balance 2% 3 New Balance 2%


5 Asics 1% 5 Brooks 1% 5 Brooks 1% 5 Brooks 1%




3 New Balance 3% 3 New Balance 2% 3 New Balance 2% 3 New Balance 2%

4 ASICS 1% 4 lululemon 1% 4 Under Armour 1% 4 Brooks 1%

5 Under Armour 1% 5 Brooks 1% lululemon 1% 5 Asics 1%

Chaco 1% Asics 1% Under Armour 1%




3 New Balance 4% 3 Under Armour 2% 3 New Balance 3% 3 New Balance 3%

4 Under Armour 2% 4 New Balance 2% 4 Under Armour 2% 4 Under Armour 2%

5 ASICS 1% 5 Brooks 1% 5 Brooks 1% 5 Vans 1%


Favorite Athletic Footwear Brands (AI Teens)





3 Under Armour 2% 3 Under Armour 2% 3 New Balance 2% 3 Under Armour 2%

4 New Balance 2% 4 New Balance 1% 4 Under Armour 1% 4 New Balance 1%

5 ASICS 1% 5 Brooks 1% 5 Asics 1% 5 Brooks 1%




3 Under Armour 3% 3 Under Armour 3% 3 New Balance 2% 3 Under Armour 2%

4 New Balance 2% 4 New Balance 2% 4 Under Armour 2% 4 New Balance 2%

5 Puma 1% 5 Brooks 1% 5 Asics 1% 5 Brooks 1%




3 New Balance 1% 3 Under Armour 1% 3 Under Armour 1% 3 Under Armour 1%

4 Under Armour 1% 4 New Balance 1% 4 New Balance 1% 4 Brooks 1%

5 Brooks 1% 5 Brooks 1% Brooks 1% New Balance 1%


Social Media Platform Historical Time Series

• Picture-based apps continue to outperform on usage; Facebook continues to moderate in engagement

• Snapchat continued as the favorite but TikTok jumped up to the second spot as Instagram moved to No. 3

• In terms of highest engagement or usage, however, Instagram remained in the top-spot; TikTok (having first been

listed in our survey in Spring 2020) moved up from 62% to 69% of teen usage

• Pinterest usage also accelerated in Fall 2020 which we believe is a direct result of teens seeking out the DIY trend

during COVID-19

• The average teen in our survey spends ~12 hours per week on social media



Teen Daily Video Consumption Time Series

• Hulu dipped slightly to 7% from 8% for the spring while Amazon Prime was flat at 3%.

• On average, teens spend 34% of their daily video consumption on Netflix, up from 33% in our Spring 2020 survey. Netflix remained

the top platform, ahead of YouTube at 32% (up from 31% in Spring).

• Disney+ and AppleTV+ slipped to 6% and 1% respectively.


38%

23%26%

37%

22%

29%

39%

20%

30%

38%

16%

33%37%

14%

32%35%

12%

37%33%

11%

31%

7%

34%

9%

32%

6%

Netflix Cable TV YouTube Disney+


1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20

4%3%

6%

4%

3%

6%

5%

3%

6%5%

3%

5%

7%

3%

7%7%

3%

5%

8%

3%

5%

2%

7%

3%

6%

1%

Hulu Amazon Prime Other streaming Apple TV+


1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20


Meet Our Senior Research Analyst Team

Erinn MurphyGlobal Lifestyle Brands

Nicole Miller ReganRestaurants & Branded

Hospitality

Yung Kim

Entertainment Technology


Michael Lavery

Food, Tobacco & Cannabis

Harsh Kumar

Semiconductors

Tom Champion

Internet


http://www.piperjaffray.com/2col.aspx?id=7&analystid=377&title=Analyst%20Information%20for%20Erinn%20Murphy

http://www.piperjaffray.com/2col.aspx?id=7&analystid=433&title=Analyst%20Information%20for%20Nicole%20Miller%20Regan

http://www.pipersandler.com/2col.aspx?id=7&analystid=1548&title=Analyst%20Information%20for%20Yung%20Kim

http://www.pipersandler.com/2col.aspx?id=7&analystid=2167&title=Analyst%20Information%20for%20Michael%20Lavery

http://www.pipersandler.com/2col.aspx?id=7&analystid=2304&title=Analyst%20Information%20for%20Harsh%20Kumar

http://www.pipersandler.com/2col.aspx?id=7&analystid=3145&title=Analyst%20Information%20for%20Thomas%20Champion

Important Research Disclosures *

Distribution of Ratings/IB ServicesPiper Sandler

IB Serv./Past 12 Mos.

Rating Count Percent Count Percent

BUY [OW] 542 61.04 186 34.32

HOLD [N] 331 37.27 62 18.73

SELL [UW] 15 1.69 1 6.67

Analyst Certification — Erinn E. Murphy, Sr Research Analyst

— Nicole Miller Regan, Sr Research Analyst

— Yung Kim, Sr. Research Analyst

— Michael S. Lavery, Sr. Research Analyst

— Thomas Champion, Sr. Research Analyst

— Harsh V. Kumar, Sr. Research AnalystThe analysts Erinn E. Murphy, Nicole Miller Regan, Yung Kim, Michael S. Lavery, Thomas Champion and Harsh V. Kumar, primarily responsiblefor the preparation of this research report, attest to the following:

The views expressed in this report accurately reflect our personal views about the subject company and the subject security. In addition, no partof our compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this report.

Piper Sandler research analysts receive compensation that is based, in part, on overall firm revenues, which include investment banking revenues.

Time of dissemination: 6 October 2020 00:01EDT.

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October 2020

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Rating DefinitionsStock Ratings: Piper Sandler fundamental research ratings are indicators of expected total return (price appreciation plus dividend) withinthe next 12 months. At times analysts may specify a different investment horizon or may include additional investment time horizons forspecific stocks. Stock performance is measured relative to the group of stocks covered by each analyst. Lists of the stocks covered by eachare available at www.pipersandler.com/researchdisclosures. Stock ratings and/or stock coverage may be suspended from time to time in theevent that there is no active analyst opinion or analyst coverage, but the opinion or coverage is expected to resume. Research reports andratings should not be relied upon as individual investment advice. As always, an investor’s decision to buy or sell a security must dependon individual circumstances, including existing holdings, time horizons and risk tolerance. Piper Sandler sales and trading personnel mayprovide written or oral commentary, trade ideas, or other information about a particular stock to clients or internal trading desks reflectingdifferent opinions than those expressed by the research analyst. In addition, Piper Sandler offers technical research products that are basedon different methodologies, may contradict the opinions contained in fundamental research reports, and could impact the price of the subjectsecurity. Recommendations based on technical analysis are intended for the professional trader, while fundamental opinions are typicallysuited for the longer-term institutional investor.

Overweight (OW): Anticipated to outperform relative to the median of the group of stocks covered by the analyst.

Neutral (N): Anticipated to perform in line relative to the median of the group of stocks covered by the analyst.

Underweight (UW): Anticipated to underperform relative to the median of the group of stocks covered by the analyst.


October 2020

Other Important InformationThe material regarding the subject company is based on data obtained from sources we deem to be reliable; it is not guaranteed as toaccuracy and does not purport to be complete. This report is solely for informational purposes and is not intended to be used as the primarybasis of investment decisions. Piper Sandler has not assessed the suitability of the subject company for any person. Because of individualclient requirements, it is not, and it should not be construed as, advice designed to meet the particular investment needs of any investor.This report is not an offer or the solicitation of an offer to sell or buy any security. Unless otherwise noted, the price of a security mentioned inthis report is the most recently available closing market price. Piper Sandler does not maintain a predetermined schedule for publication ofresearch and will not necessarily update this report. Piper Sandler policy generally prohibits research analysts from sending draft researchreports to subject companies; however, it should be presumed that the fundamental equity analyst(s) who authored this report has haddiscussions with the subject company to ensure factual accuracy prior to publication, and has had assistance from the company in conductingdiligence, including visits to company sites and meetings with company management and other representatives.Notice to customers: Thismaterial is not directed to, or intended for distribution to or use by, any person or entity if Piper Sandler is prohibited or restricted by anylegislation or regulation in any jurisdiction from making it available to such person or entity. Customers in any of the jurisdictions where PiperSandler and its affiliates do business who wish to effect a transaction in the securities discussed in this report should contact their local PiperSandler representative, or as otherwise noted below. Canada: This research report is distributed in Canada by CIBC World Markets Inc.Investors in Canada wishing to effect a transaction in the securities discussed in this report should contact their CIBC sales representative.This research report has not been prepared in accordance with the disclosure requirements of Dealer Member Rule 3400 – ResearchRestrictions and Disclosure Requirements of the Investment Industry Regulatory Organization of Canada. For further disclosure related toCIBC conflicts of interest please visit https://researchcentral.cibcwm.com. Europe: This material is for the use of intended recipients onlyand only for distribution to professional and institutional investors, i.e. persons who are authorised persons or exempted persons within themeaning of the Financial Services and Markets Act 2000 of the United Kingdom, or persons who have been categorised by Piper SandlerLtd. as professional clients under the rules of the Financial Conduct Authority. United States: This report is distributed in the United Statesby Piper Sandler & Co., member SIPC, FINRA and NYSE, Inc., which accepts responsibility for its contents. The securities described inthis report may not have been registered under the U.S. Securities Act of 1933 and, in such case, may not be offered or sold in the UnitedStates or to U.S. persons unless they have been so registered, or an exemption from the registration requirements is available.This reportis produced for the use of Piper Sandler customers and may not be reproduced, re-distributed or passed to any other person or published inwhole or in part for any purpose without the prior consent of Piper Sandler & Co. Additional information is available upon request. Copyright2020 Piper Sandler. All rights reserved.


October 2020

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