Teens Are “Snapping” up Denim, Sneakers and Beauty, According to Survey of 10,000 Teens

MINNEAPOLIS–(BUSINESS WIRE)–Piper
Jaffray Companies (NYSE: PJC), a leading investment bank and asset
management firm, completed its 32nd semi-annual Taking Stock With Teens
research survey, which highlights spending trends and brand preferences
amongst 10,000 teens across 46 U.S. states.

For an infographic and more information regarding the fall survey,
please visit piperjaffray.com/teens.

Since the project began in 2001, Piper Jaffray has surveyed more than
140,000 teens and collected over 37 million data points on teen spending
in fashion, beauty and personal care, digital media, food, gaming and
entertainment.

“While total spending among the teen demographic appears to be down
slightly versus last year, we are encouraged that the upper-income
teenagers in our survey are indicating more optimism and positive
spending trends. This increase in spending among upper-income teens
seems to be largely broad-based across fashion and beauty,” said Neely
Tamminga, Piper Jaffray senior research analyst.

Fall 2016 Key Findings

Fashion and Beauty:

• While overall teen spending is down compared to fall 2015, spending
  trends are encouraging among upper-income teens where total spending
  is indicated up 2.5% year-over-year. Historically, we’ve observed that
  results from our upper-income survey set tend to lead overall spending.
• Denim brands saw an uptick to 19% aggregated mindshare and showed up
  as a top trend among upper-income females for the second consecutive
  survey in a row.
• Among upper-income teens, fashion athletic apparel is still on the
  rise with a new high of 35% share achieved with Nike, adidas and Under
  Armour gaining share.
• The beauty category’s wallet share among upper-income females reached
  11%―the highest value seen in our survey history. Specialty store
  formats continue to outpace legacy channels for beauty.

Digital Media, Gaming, Food and Entertainment:

• Restaurants represented 23% of overall spending for upper-income
  teens; teens are choosing limited-service concepts at nearly a 50%
  greater rate than full-service concepts. With that, teens consider the
  overall value equation versus price-alone when choosing preferred
  dining destinations, with the average check ranging from $5 to $17.
• Amazon Prime adoption has grown across all income brackets in each of
  the past six surveys, most recently indicating Amazon Prime exists in
  58% of households of the teens surveyed. This survey, along with other
  previous Piper Jaffray consumer surveys, suggests that there are 63-66
  million Prime households in the U.S.
• For the first time in our survey, YouTube outpaced cable TV when teens
  respond to how they spend their time.
• The only two categories that exceed male teen spending on video games
  (12%) are food (20%) and clothing (16%). Video game spending among
  males remains above survey history averages.
• The most anticipated movies this year among teens are: 1) Fast 8; 2)
  Rogue One: A Star Wars Story takes the second seat; and 3) Beauty and
  the Beast. Overall Disney Studios’ mindshare among teens is on the
  rise.

About the Survey
The Taking Stock With Teens survey is a
semi-annual research project comprised of gathering input from
approximately 10,000 teens with an average age of 16.0 years. Teen
spending patterns, fashion trends, and brand and media preferences were
assessed through surveying a geographically diverse subset of high
schools across the U.S.

About Piper Jaffray
Piper Jaffray Companies (NYSE: PJC) is a
leading investment bank and asset management firm. Securities brokerage
and investment banking services are offered in the U.S. through Piper
Jaffray & Co., member SIPC and FINRA; in Europe through Piper Jaffray
Ltd. and Simmons & Company International Limited, authorized and
regulated by the U.K. Financial Conduct Authority; and in Hong Kong
through Piper Jaffray Hong Kong Limited, authorized and regulated by the
Securities and Futures Commission. Asset management products and
services are offered through five separate investment advisory
affiliates―U.S. Securities and Exchange Commission (SEC) registered
Advisory Research, Inc., Piper Jaffray Investment Management LLC, PJC
Capital Partners LLC and Piper Jaffray & Co.; and Guernsey-based
Parallel General Partners Limited, authorized and regulated by the
Guernsey Financial Services Commission.

© 2016 Piper Jaffray Companies. 800 Nicollet Mall, Suite 1000,
Minneapolis, Minnesota 55402-7036

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Contacts

Piper Jaffray Companies
Pamela Steensland, 612-303-8185
analystmediarelations@pjc.com