7,500 TEENS SURVEYED

Average Age

Key Trends

• Modestgrowthofactionsportsbranddemand

• Moderationinfastfashionpreferenceamongteengirls

• Crestingoftherefinedclassiccycle

• Evolvingdemandforfashionathleticbrands

16.4 YEARS OLD

SpendingMixbyCategory†

CLOTHING 20.7%

0 % 50 % 10 0 %

FOOD 20.8%

SHOES 8%

ACCESSORIES/PERSONAL C ARE 10%

ELEC TRONICS/GADGE TS 8%

C AR 8%

MUSIC/MOVIES 6%

VIDEO GAME SYS TEMS 7%

E VENTS 6%

FURNITURE 1%

BOOKS/MAGA ZINES 2%

OTHER 3%

PiperJaffray27thSemi-AnnualTakingStockWithTeensSurvey,Spring2014

TheExperience-SeekingGeneration

Forthefirsttimeinoursurveyhistory,food exceeded clothing as a percentageoftheteenwallet

48U.S. STATES

ShoppingTripFrequency (trips/year)

SourcesofInfluence

• Friends

• Internet

• Television

• Sports

• Movies

• Magazines

MALES

50%75%

FEMALES

BrickandMortarPercent of teens who prefer shopping in-store vs. online

$56.50AverageSpendPerVisit

AverageShoppingTrip

97 minutes

0 %

–10 %

–20 %

–30 %

–22%UPPER

INCOME TEENS

–26%AVERAGE

INCOME TEENS

AccessoriesSpendingDeclinesYear-over-year spending on accessories

65% Parentcontributionisakeydriverofteenspending

ParentContributionRate*

22%TeenUnemploymentRate

25 40

Fall‘05

Spring‘06

Fall‘06

Spring‘07

Fall‘07

Spring‘08

Fall‘08

Spring‘09

Fall‘09

Spring‘10

Fall‘10

Spring‘11

Fall‘11

Spring‘12

Fall‘12

Spring‘13

Fall‘13

Spring‘14 29

28

38

Teenvisitsdecline26%frompeakfrequency

AverageSpendonFashionGoods (per year)

$1,032

UPPER INCOME TEENS

$932

AVER AGE INCOME TEENS

TopPreferredClothingBrands†

TopPreferredFootwearBrands

1 NIKE 28%

2 FORE VER 21 8%

3 AC TION SPORTS BR ANDS 8%

4 AMERIC AN E AGLE 8%

5 POLO R ALPH L AUREN 6%

6 HOLLIS TER 3%

7 URBAN OUTFIT TERS 3%

VIC TORIA’S SECRE T 3%

9 NORDS TROM 2%

10 ABERCROMBIE & FITCH 2%

TARGE T 2%

1 NIKE 48%

2 VANS 10 %

3 CONVERSE 4%

4 SPERRY TOP-SIDER 3%

5 ADIDAS 2%

6 S TE VEN MADDEN 2%

7 FOOT LOCKER 2%

8 PAYLESS 2%

UGG AUS TR ALIA 2%

10 TOMS 2%

TopFashionTrends“RightNow”Females, Spring 2014

1 LEGGINGS/LULULEMON 28%

2 VIC TORIA’S SECRE T/PINK 5%

3 UGGS 4%

4 BOOTS 4%

5 HIGH-WAIS TED PANTS/SKIRTS 3%

6 COMBAT BOOTS 2%

7 CROP TOPS 2%

8 MICHAEL KORS 2%

9 SC ARVES 2%

10 FORE VER 21 2%

1 NIKE/JORDANS 19%

2 POLO R ALPH L AUREN 10 %

3 BOAT SHOES 7%

SHOES 7%

5 KHAKIS 3%

6 ATHLE TIC WE AR 2%

TIMBERL AND 2%

8 PREPPY 2%

9 POLOS 2%

10 VINE YARD VINES 2%

Males, Spring 2014

Source: Piper Jaffray & Co., company reports

Upper income teen survey included approximately 1,300 teens from households with income in the top 25% of U.S. housing units (defined as $83,000/year and greater). Average income teen survey included approximately 6,200 teens from households with income below the $83,000 threshold, with the average of $55,000, slightly above the national average near $52,000.

* Average income teen group only† Upper income teen group only

TopRestaurantBrandPreferences*

1 S TARBUCKS

2 MCDONALD’S

3 CHIPOTLE

4 OLIVE GARDEN

5 TACO BELL

TeenDiningPreferencebySegment

TopSocialNetworkingSites

AppleMaintainsLeadershipPositionAmongstTeens

• 6%currentlyownasmartwatch

• 17%suggestedtheywouldpurchasean

iWatchat$350

• 61%ownaniPhone

• Ofthe60%ofteensthatownatablet,66%

ownaniPad

PreferredWaytoWatchaMovie

TimeSpentListeningtoMusic

Premiumtheater(IMAX)–30%

2Dintheater–19%

3Dintheater–10%

DVDrental–12%

Video-on-demand–9%

DVDpurchase–12%

Digitalstreaming/ subscriptions–14%

MP3Player–35%

Pandora–26%

LocalRadio–21%

CDs–7%

Otherstreamingradio–11%

QUICK SERVICE . . . . . . . 43%

FAST CASUAL . . . . . . . . . . 16%

CASUAL DINING . . . . . . 35%

OTHER . . . . . . . . . . . . . . . . . . . . . . . .6%

StephanieWissink,NeelyTamminga,

ErinnMurphy,SeanNaughton,

NicoleMillerRegan,GeneMunster,

MichaelOlson,JamesMarsh

30%Instagram

27%Twitter

23%Facebook

5%Tumblr

4%Google+

2%Pinterest

4%Other

5%Don’tusesocialnetworks

PiperJaffraySeniorResearchAnalysts: