Taking Stock With Teens - Piper Sandler Companies · 2015. 10. 13. · 14 | Taking Stock With Teens ANF Well Positioned Driven By Denim Hollister mindshare ticks up 20 bps among upper-income

Taking Stock With Teens A Collaborative Consumer Insights Project

Fall 2015

2 | Taking Stock With Teens

Disclosures for universes of: Stephanie Wissink, Neely Tamminga, Erinn Murphy, Sean Naughton, Nicole Miller Regan, Gene Munster, Peter Keith, Mike

Olson, and James Marsh:

1. I or a household member has a financial interest in the securities of the following companies: none

2. I or a household member is an officer, director, or advisory board member of the following companies: none

3. I have received compensation within the past 12 months from the following companies: none

4. Piper Jaffray or its affiliates beneficially own 1% or more of any class of common equities of the following companies: Miller Regan: IRG, PBPB; Murphy:

FINL; Olson: GLUU

5. Piper Jaffray has received compensation for investment banking services from or has had a client relationship with the following companies within the

past 12 months: Keith: BOOT, CONN, FOXF, MIK, OLLI, SPWH; Marsh: ENT; Miller Regan: BOJA, FOGO, HABT, PLAY, ZOES; Munster: DSKY,

GDDY, JMEI, WB; Murphy: FIT, GIII, GPRO; Naughton: BETR, PLNT, SFS, WWAV; Tamminga: W

6. Piper Jaffray expects to receive or intends to seek compensation for investment banking services from the following companies in the next three months:

Keith: BOOT, OLLI, SPWH; Marsh: CIDM; Miller Regan: BOJA, FOGO, PLAY; Murphy: FIT; Naughton: BETR, PLNT, WWAV

7. Within the past 12 months Piper Jaffray was a managing underwriter of a public offering of, or dealer manager of a tender offer for, the securities of the

following companies: Keith: BOOT, MIK, OLLI, SPWH; Marsh: CIDM, ENT; Miller Regan: BOJA, FOGO, HABT, PLAY, ZOES; Munster: GDDY;

Murphy: FIT, GPRO; Naughton: BETR, PLNT, SFS; Tamminga: W

8. Piper Jaffray has received compensation for non-investment banking services from or has had a client relationship with the following companies within

the past 12 months: Keith: BBY; Marsh: CIDM, LGF, SNI; Miller Regan: PLKI, SONC; Munster: WWWW; Murphy: CROX; Olson: UEIC; Tamminga:

KIRK; Wissink: JAKK

9. Piper Jaffray makes a market in the securities of the following companies, and will buy and sell the securities of these companies on a principal basis:

Keith: BBY, BIG, BOOT, CAB, CONN, DG, DLTR, FOXF, HD, HGG, HIBB, LL, LOW, MFRM, MIK, SCSS, SKUL, SPWH, TPX, TSCO, TTS; Marsh:

CBS, CIDM, CKEC, CMLS, DIS, DISCA, DWA, ENT, IMAX, IPG, LAMR, LGF, MDCA, NCMI, P, RGC, RLD, SIRI, VIAB; Miller Regan: BBRG, BJRI,

BOJA, CAKE, DFRG, DNKN, DRI, EAT, FRGI, FOGO, HABT, IRG, MCD, NDLS, PBPB, PLAY, PLKI, PNRA, RUTH, SBUX, SONC, ZOES; Munster:

AAPL, AMZN, ANGI, BIDU, DSKY, EBAY, FB, FUEL, GDDY, GRPN, JD, LNKD, LOGM, MCHX, MELI, PYPL, RLOC, SINA, TUBE, VIPS,

WWWW, YELP, YHOO, YY; Murphy: BDE, COH, CROX, DECK, FINL, FIT, FL, FOSL, GCO, GES, GIII, GPRO, KORS, NKE, PVH, SHOO, SQBG,

UA, VNCE, WWW; Naughton: BDBD, BGS, CLUB, COST, HAIN, NGVC, SFM, SFS, TFM, TGT, UNFI, VSI, WFM; Olson: AKAM, ATVI, AWAY,

CHGG, CTRP, DLB, EA, EXPE, GLUU, GME, KING, NFLX, OUTR, PCLN, ROVI, TIVO, TRIP, TTWO, WBAI, ZNGA; Tamminga: AEO, ANF,

ASNA, CBK, CHS, EXPR, GMAN, GPS, JCP, JWN, KIRK, KSS, LB, RH, ROST, TYLS, URBN, VRA, VVTV, W, WSM, ZU, ZUMZ; Wissink: AVP,

COTY, CRI, HAS, IPAR, JAKK, LF, MAT, NWL, PLCE, SBH, SUMR, ULTA

10. Piper Jaffray usually provides bids and offers for the securities of the following companies and will, from time to time, buy and sell the securities of these

companies on a principal basis: Keith: OLLI; Marsh: AMC, AMCX, CNK, SNI; Miller Regan: CMG, QSR; Munster: ATHM, DL, GOOG, JMEI, WB,

YUME; Murphy: RL, VFC; Naughton: BETR, PLNT, WWAV; Olson: UEIC; Tamminga: HSNI; Wissink: BBW, EL, HELE, JAH, LBY, RGS, TUP

Note: A Piper Jaffray officer, director or employee (other than the research analyst) is a member of the board of directors of DWA.

Disclosures


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

• 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

Fashion & Beauty

Media & Devices

Stock Highlights

Questions & Answers

Appendix


Depth of expertise anchored in primary research

Piper Jaffray Consumer Insights

Taking Stock With

Teens Taking Stock With

Young Adults

Millennial Moms Survey

Women’s Survey

Athletic Brand &

Wearables Survey

Holiday Spending

Survey

Healthy Lifestyle Survey

CFO/CIO Survey

Restaurant Benchmark

Book

Home

Improvement

Survey


30th Semi-Annual Proprietary Teen Research Project

National survey of teens measuring: • Behaviors & Priorities • Capacity & Intentions • Brand Preferences

16.0 Average Age

36% Part-Time Employed

Survey is executed in partnership with DECA.

2,700 teens Classroom visits

and electronic

surveys

$107,000 Household income

Represents top 20% of U.S. household units

6,700 teens Classroom visits

and electronic

surveys

$52,000 Household income

Aligns more closely with U.S. median

UPPER-INCOME GROUP

AVERAGE-INCOME GROUP

9,400 Total Responses

Fashion & Beauty Clothing, Shoes, Accessories & Beauty

38% of Teen Spending


Spending Trends, By Income Total spending trends reflect declines year-over-year and from the spring survey levels. That said, fashion spending, among the upper-income set is demonstrating a rebound from the spring survey.

Outside of fashion and a slight up tick in specialty stores, very few shifts in shopping frequency, category spending, or spending intentions have changed much from recent surveys.

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AVERAGE-INCOME SPENDING

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Average-Income Total Spend Average-Income Fashion Spend


A Look Back At Top Teen Brands A look back at upper-income teen preferred apparel brands in the last 15 years.

Teen preferences have transitioned from preppy to West Coast lifestyle to action sports to pure-play performance brands.

Nike has been the No. 1 brand for five consecutive years.

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Gap

2.5 years3.5 years3.5 years

Action Sports

BrandsHollisterAbercrombie & Fitch


Top Apparel & Footwear Brands Upper-income preferred apparel & footwear brands for Fall 2015.

Nike continues to gain share—both in apparel & footwear.

Ralph Lauren sees ranking stability in apparel.

Vineyard Vines makes its top-ten debut in apparel.

Birkenstock makes its top-ten debut in footwear.

Rank Fall 2015 % Rank Spring 2015 % Rank Fall 2014 %

1 Nike 50% 1 Nike 46% 1 Nike 43%

2 Vans 9% 2 Vans 9% 2 Vans 10%

3 Converse 7% 3 Converse 5% 3 Converse 6%

4 Sperry Top-Sider 4% 4 DSW 3% 4 Sperry Top-Sider 5%

5 Steve Madden 3% Steve Madden 3% 5 Steve Madden 5%

6 DSW 3% 6 Sperry Top-Sider 3% 6 DSW 4%

7 Adidas 2% 7 UGG Australia 2% 7 Nordstrom 2%

8 Foot Locker 1% 8 Adidas 2% 8 Adidas 2%

9 Birkenstock 1% 9 Nordstrom 1% 9 UGG Australia 1%

Nordstrom 1% 10 Payless ShoeSource 1% 10 Payless ShoeSource 1%


1 Nike 27% 1 Nike 24% 1 Nike 22%

2 Forever 21 7% 2 Forever 21 8% 2 American Eagle 8%

3 American Eagle 6% 3 American Eagle 6% 3 Forever 21 7%

4 Ralph Lauren 5% 4 Ralph Lauren 4% 4 Ralph Lauren 6%

5 Urban Outfitters 3% 5 Victoria's Secret 4% 5 Urban Outfitters 4%

6 PacSun 2% 6 Urban Outfitters 3% 6 PacSun 4%

7 Free People 2% 7 Hollister 2% 7 Hollister 2%

8 H&M 2% 8 Nordstrom 2% 8 Nordstrom 2%

9 Vineyard Vines 2% 9 Free People 2% 9 T.J. Maxx 2%

10 Nordstrom 2% PacSun 2% 10 Victoria's Secret 2%

PREFERRED CLOTHING BRANDS (UPPER-INCOME, ALL)

PREFERRED FOOTWEAR BRANDS (UPPER-INCOME, ALL)


Signs Of Interest In Fashion (Finally!) Fashion spend ticks up while total spend ticks down; teens allocating more wallet share to clothing.

Intent to spend “more” on clothing sustaining in low-60%s among upper-income females vs. the prior 40% levels.

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The Inflection Point From Innovation In "How" To Shop

(Digital/Mobile) To Innovation In "What" To Shop For

(Denim/Knits)


Time Spent In Specialty Inflecting Positive Among the upper-income females in our survey, we saw time spent in the specialty channel tick up for the first year since the launch of the iPhone.

Past two seasons of surveys showing steady gains in specialty channel among the upper-income females—Fall 2015 level of 33% compares with 37% 13-year fall season average.

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Denim On The Rise; Fast Fashion Down Denim saw an uptick to 13.8% of overall mindshare among upper-income females vs. 11.6% just a year ago.

Fast fashion declined to 22.5% of mindshare among upper-income females compared to 23.2% last fall.

Forever 21 has held the No. 1 preferred store spot for years, but the share of the vote is waning.

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ANF Well Positioned Driven By Denim Hollister mindshare ticks up 20 bps among upper-income seniors (ages 17-19) on top of a 60 bps improvement a year ago.

Hollister ranks in the top 10 among upper-income seniors while it does not show up in the top 10 among the broader upper-income survey group.

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Hollister Comp Hollister Change In Mindshare Y/Y

Rank Fall 2015 %

1 Nike 23%

2 Forever 21 8%

3 Ralph Lauren 5%

4 American Eagle 5%

5 Urban Outfitters 3%

6 Nordstrom 3%

7 PacSun 3%

8 Free People 2%

9 Hollister 2%

10 H&M 2%

Kohl's 2%

Rank Fall 2015 %

1 Nike 27%

2 Forever 21 7%

3 American Eagle 6%

4 Ralph Lauren 5%

5 Urban Outfitters 3%

6 PacSun 2%

7 Free People 2%

8 H&M 2%

9 Vineyard Vines 2%

10 Nordstrom 2%

UPPER-INCOME

ALL TEENS UPPER-INCOME

SENIORS ONLY


Innovation Drives Interest; Denim Inflects Upper-income female preferred apparel brand groupings:

Denim inflecting for first fall season since 2010—from 11.6% in 2014 to 13.8% in 2015.

Fashion athletic remains on the rise—from 1.5% 2009 to 13.9% 2015.

If denim & athletic can be a “both and” purchase—who loses on the margin?

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Performance Wins; Peripheral Brands Lose Share gains have flattened out for peripheral athletic brands like Victoria’s Secret & Juicy Couture—maintaining a ~4% share since 2012.

Performance athletic brands, led by Nike, are accelerating in share and stand at 10% of total vote.

Authentic brand leaders getting stronger.

Rank Fall 2015 % Rank Fall 2014 %

1 Forever 21 15% 1 Forever 21 14%

2 American Eagle 10% 2 American Eagle 10%

3 Urban Outfitters 7% 3 Urban Outfitters 7%

4 Nike 6% 4 PacSun 5%

5 Free People 6% 5 Nordstrom 5%

6 Nordstrom 4% 6 Victoria's Secret 4%

7 Victoria's Secret 4% 7 Nike 4%

8 PacSun 4% 8 Free People 4%

9 lululemon 3% 9 Hollister 4%

10 Hollister 3% 10 T.J. Maxx 3%

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Accessories Still A Wallet Donor Among upper-income females, dollars spent on accessories was down 4% Y/Y and is trending 24% below historic average of $198.

Importantly, intent to purchase a handbag in the next six months moved down from 45% of females indicating “yes” in spring to 39% this fall; KORS saw a steep decline whereas COH saw a slight tick up.

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KORS Upper-Income Females

COH Upper-Income Females


KORS Sees First Notable Deceleration

PREFERRED HANDBAG BRANDS (UPPER-INCOME, FEMALES)

31% of upper-income females still prefer Michael Kors, however this is down from 39% just six months ago.

Average-income share rises further—now 44% of vote (Coach peaked at 46% of average-income vote).

Spread between KORS upper-income and average-income has never been wider—we believe this brand is in unhealthy territory.


1 Michael Kors 31% 1 Michael Kors 39% 1 Michael Kors 30%

2 Kate Spade 15% 2 Coach 14% 2 Coach 18%

3 Coach 10% 3 Kate Spade 10% 3 Kate Spade 10%

4 Louis Vuitton 6% 4 Louis Vuitton 5% 4 Louis Vuitton 4%

5 Vera Bradley 5% 5 Vera Bradley 5% 5 Longchamp 4%

6 Tory Burch 4% 6 Tory Burch 4% 6 Vera Bradley 4%

7 Gucci 3% 7 Chanel 2% 7 Chanel 3%

8 Longchamp 3% 8 Target 2% Tory Burch 3%

9 Chanel 2% 9 Longchamp 1% 9 Marc Jacobs 3%

10 Marc Jacobs 2% 10 Gucci 1% 10 Gucci 2%

Marc Jacobs 1%

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Coach Upper-Income Coach Average-IncomeMichael Kors Upper-Income Michael Kors Average-IncomeKate Spade Upper-Income Kate Spade Average-Income


Fossil Portfolio Slips, Apple Picks Up

PREFERRED WATCH BRANDS (UPPER-INCOME)

APPLE MINDSHARE OF TOTAL WATCH BRAND PREFERENCES (UPPER-INCOME)

Michael Kors still No. 2 but saw mindshare move from 24% to 19%.

Fossil stayed at No. 4 but lost share sequentially.

Apple moved from the No. 11 rank in Fall 2014 to the No. 5 rank this fall.

Nixon gained share.

Casio and Timex on a multi-year decline.

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1 Rolex 34% 1 Rolex 31% 1 Rolex 30%

2 Michael Kors 19% 2 Michael Kors 24% 2 Michael Kors 23%

3 Casio 7% 3 Casio 8% 3 Casio 9%

4 Fossil 5% 4 Fossil 7% 4 Fossil 5%

5 Apple 5% 5 Nike 4% 5 Nike 4%

6 Nike 4% 6 Apple 3% 6 Nixon 2%

7 Nixon 4% 7 Nixon 1% 7 Swatch 2%

8 Gucci 2% 8 Swatch 1% 8 Timex 2%

9 Timex 2% 9 Timex 1% 9 Marc Jacobs 2%

10 Swatch 1% 10 Gucci 1% 10 Gucci 1%

Kate Spade 1%


Beauty: From Conformity To Individuality Mindshare de-concentration and rise in number of brands mentioned speaks to brand “discovery”.

Sustained relevance requires innovation, engagement, and adaptability (ex: MAC = No. 1 brand in all but 2 years).

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Top Brand

Top BrandShare

26% 15%13%16%19%18%18%23%22%24%


“Authentic Indie” Replaces National Brands Highly innovative brands are best positioned to retain teen customers.

Mass brands ceding share to authentic social media backed/built indie brands.

Rank Fall 2015 % Rank Spring 2015 % Rank Fall 2014 % Rank Spring 2014 %

1 MAC 16% 1 MAC 13% 1 Maybelline 13% 1 Maybelline 13%

2 Maybelline 12% 2 Maybelline 13% 2 CoverGirl 10% 2 CoverGirl 12%

3 Urban Decay 10% 3 CoverGirl 9% 3 MAC 10% 3 MAC 12%

4 CoverGirl 9% 4 Urban Decay 9% 4 Urban Decay 7% 4 Sephora 7%

5 Bare Escentuals 6% 5 Sephora 7% 5 Sephora 7% 5 Urban Decay 7%

6 Sephora 5% 6 Bare Escentuals 5% 6 Bare Escentuals 5% 6 Bare Escentuals 5%

7 Benefit 5% 7 L'Oreal 5% 7 L'Oreal 5% L'Oreal 5%

8 L'Oreal 3% 8 Clinique 3% 8 Clinique 4% 8 Clinique 4%

9 Clinique 3% 9 Benefit 3% 9 Benefit 4% 9 Revlon 4%

10 NARS 3% 10 Revlon 2% 10 Neutrogena 3% 10 Neutrogena 3%

PREFERRED COSMETICS BRANDS (UPPER-INCOME, FEMALES)

PREFERRED COSMETICS BRANDS (AVERAGE-INCOME, FEMALES)


1 MAC 19% 1 MAC 15% 1 Maybelline 14% 1 CoverGirl 15%

2 CoverGirl 12% 2 Maybelline 12% 2 CoverGirl 13% 2 Maybelline 15%

3 Maybelline 12% 3 CoverGirl 10% 3 MAC 13% 3 MAC 13%

4 Urban Decay 9% 4 Sephora 7% 4 Sephora 7% 4 L'Oreal 7%

5 Sephora 5% 5 Urban Decay 7% 5 Urban Decay 6% 5 Sephora 6%

6 Bare Escentuals 5% 6 L'Oreal 6% 6 L'Oreal 5% 6 Urban Decay 5%

7 L'Oreal 4% 7 Bare Escentuals 4% 7 Bare Escentuals 4% 7 Bare Escentuals 4%

8 Mary Kay 3% 8 Revlon 3% 8 Mary-Kay 4% 8 Mary-Kay 3%

9 e.l.f. 3% 9 Clinique 3% 9 Clinique 3% 9 Revlon 3%

10 Clinique 3% 10 Mary Kay 3% 10 Revlon 3% 10 Clinique 3%


Discovery Supports Specialty Retail Formats Specialty ticks up as a preferred beauty destination among upper-income females; outpacing legacy formats.

PREFERRED BEAUTY DESTINATIONS (UPPER-INCOME, FEMALES)

PREFERRED SHOPPING CHANNEL PREFERENCES (UPPER-INCOME, FEMALES)

32%

61%54%

31%

0%

10%

20%

30%

40%

50%

60%

70%

Fall 2013 Spring 2014 Fall 2014 Spring 2015 Fall 2015

Specialty Mass, Dept & Drug Stores

Channel Reversal:

Specialty stores outpace legacy

formats


1 Sephora 38% 1 Target 19% 1 Sephora 22%

2 Ulta 19% 2 Sephora 19% 2 Target 21%

3 Target 14% 3 Ulta 18% 3 CVS 13%

4 CVS 6% 4 CVS 14% 4 Ulta 13%

5 MAC 3% 5 Walmart 9% 5 Walmart 7%

6 Walmart 3% 6 Walgreens 5% 6 Walgreens 3%

7 Macy's 3% 7 MAC 2% 7 Macy's 2%

8 Nordstrom 2% 8 Macy's 2% 8 Nordstrom 2%

9 Walgreens 2% Nordstrom 2% Online 2%

10 Rite-Aid 1% 10 Mall 1% 10 MAC 2%

Online 1%

Media & Devices Music, Video Games, Mobile & Entertainment

29% of Teen Spending


Amazon Mindshare Up Despite Large Share Amazon mindshare steps up to 38% overall among upper-income teens as a preferred website vs. 36% last spring and 32% just a year ago.

13%

20%

23

%

31%

31% 32%

36% 3

8%

15%

26%

24%

35%

34%

40%

47%

45%

11% 1

3%

22%

25%

26%

21% 23%

28%


Overall Males Females

AMAZON MINDSHARE AS A PREFERRED WEBSITE (UPPER-INCOME)


Prime Penetration Increasing By Income Amazon Prime penetration up 400 bps overall from Spring 2015 driven by increases across all income brackets.

HOUSEHOLD PENETRATION OF PRIME BY HOUSEHOLD INCOME

20k-30k

30k-40k

40k-50k

50k-60k

60k-70k

70k-80k

80k-90k

90k-100k

100k-110k

110k-120k

125k+ Total

Spring 2015 31% 35% 35% 42% 42% 47% 49% 52% 53% 57% 63% 43%

Fall 2015 32% 38% 42% 44% 47% 48% 55% 54% 57% 60% 66% 47%

0%

10%

20%

30%

40%

50%

60%

70%

Income Threshold

Spring 2015 Fall 2015


Instagram Remains Top For Teens Snapchat No. 3 & rising as a preferred social network.

MOST IMPORTANT SOCIAL NETWORK

33%

20%

19

%

15%

3%

1%

1%

8%

0%

Instagram Twitter Snapchat Facebook Tumblr Google+ Pinterest Other Don't UseSocial

Networks


Spring 2014 Spring 2015 Fall 2015


Apple Ownership & Interest Increasing iPhone ownership ticked up to 67% from 66% six months ago; intent to purchase an iPhone as a next phone moved up to 74% from 72% last spring.

Smartwatch ownership currently sits at 9% among our survey respondents; 8% intend to purchase an Apple Watch.

IPHONE OWNERSHIP

SMARTWATCH OWNERSHIP

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Spring 2014 Fall 2014 Spring 2015 Fall 2015

Own a Smartwatch Plan to Buy Apple Watch

0%

10%

20%

30%

40%

50%

60%

70%

80%


Own an iPhone Next Phone an iPhone


Evolution Of TV Consumption Teens are spending more time with Netflix (38%) and YouTube (21%) while moving away from traditional TV (29%).

These trends are challenging Viacom, Discovery & Scripps Interactive business models.

Content pure-plays like LGF & DWA remain platform agnostic and benefit from growth of these new platforms.

TIME SPENT WATCHING MEDIA

DEMAND FOR CABLE TV IS DWINDLING

Netflix38%

Cable TV29%

YouTube21%

Other Streaming

8%

Hulu4%

0%

10%

20%

30%

40%

50%

60%

70%

80%


% of Teens Don’t Need Cable% of Time TV Shows Are Watched On TV


Streaming Up; Pandora Down To Spotify Broadcast radio continues to lose listenership in the car among teens as streaming expands.

Spotify is gaining on Pandora’s popularity, Pandora slips to third place.

For Pandora, however, the resolution of its CRB proceedings is a more important & timely catalyst, trumping short-term listenership trends.

MEDIA CONSUMPTION IN THE CAR

TIME SPENT LISTENING TO MUSIC BY PLATFORM

AM/FM35%

Other Streaming (Spotify)

20%

Pandora14%

Recorded Media (CDs, MP3s)22%

Sirius/XM9%

Spring

2012

Fall

2012

Spring

2013

Fall

2013

Spring

2014

Fall

2014

Spring

2015

Fall

2015

MP3s 47% 40% 38% 37% 35% 42% 39% 37%

Other Streaming (Spotify) 8% 8% 9% 10% 11% 13% 17% 21%

Pandora 18% 22% 26% 25% 26% 18% 18% 17%

Local Radio 18% 21% 20% 20% 21% 16% 16% 16%

CDs 9% 9% 8% 8% 7% 6% 6% 5%

SiriusXM 5% 5% 4%


On Track To Box Office Record; Favor LGF The box office is on track to hit a record in 2015, particularly with the release of Star Wars.

Interestingly, despite the popularity of Star Wars, teens are most excited about the Hunger Games finale, Mockingjay Part 2.

MOST ANTICIPATED FILM IN THE NEXT 12 MONTHS

Hunger Games: Mockingjay, Part

2 (Finale)24%

Star Wars: Episode VII

16%

Batman v Superman: Dawn

of Justice12%

Divergent: Allegiant, Part 1

12%

Kung Fu Panda 36%

Spectre (James Bond film)

5%

Other25%


Console Video Game Takeaways 73% of respondents anticipate buying a next-gen console or already own one, compared to 70% in the spring and 67% in Fall 2014.

GameStop maintains its lead in pre-owned video game market share during the critical early stages of the next-gen console cycle with a 53% share of respondents (up from 48% in our spring survey).

DO YOU EXPECT YOUR HH TO BUY THE PS4 OR X1 IN THE NEXT TWO YEARS?

DO YOU PURCHASE USED/PRE-OWNED VIDEO GAMES? IF YES, WHERE DO YOU PURCHASE YOUR USED VIDEO GAMES?

26%

37% 39%52%

49%

65%67%

70%

73%

40%

45%

50%

55%

60%

65%

70%

75%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%


Already Own One Already Own + Anticipate Purchase

PS4 & Xbox OneLaunched

63%

64% 64%

63%

62%

61%

Spring2013

Fall2013

Spring2014

Fall2014

Spring2015

Fall2015

GameStop, 53%

Amazon, 17%

Walmart, 15%

Best Buy, 11%

eBay, 8%

Other, 6%


Teen Mobile Game Trends Stable

% TEENS THAT PLAY GAMES ON THEIR MOBILE PHONES/TABLETS

% TEENS THAT BUY VIRTUAL GOODS WHEN PLAYING GAMES ON MOBILE

79% of teens play games on smartphone or tablet, compared with 81% in the spring.

24% of teens who play mobile games spend money in game (vs. 21% in the spring).

83%

81%

85%

80%

81%

79%


16%18% 18%

22%21%

24%


Stock Highlights


Analyst: Neely Tamminga

ANF (+): REITERATING OVERWEIGHT RATING; DENIM REBOUND + SIGNS OF BRAND IMPROVEMENT

For the first time in two years, A&F emerged in the top ten list (No. 8) as a brand preferred by upper-income males. Hollister is

showing consistency across both upper-income and average-income teens with showings in the top ten for each.

JWN (+): REITERATING OVERWEIGHT RATING; BRAND RELEVANT ACROSS MULTIPLE CATEGORIES

Aided by recent efforts to not only acquire customers during an era when mom or dad is buying (ala our teen survey respondents),

Nordstrom has added relevant brands with accessible price points like Topshop to retain these younger customers. With few showing

in multiple categories, Nordstrom ranks No. 6 and No. 7, respectively among upper-income females for clothing and footwear.

URBN (+): MAINTAINING NEUTRAL RATING, BUT NOTE BRAND STRENGTH AT BOTH UO + FP DIVISIONS COMPELLING

Though loathe to be associated as a “teen” brand, URBN cannot control what the kids like these days! The core UO brand ranks No. 3

as a preferred brand among upper-income females; Free People is right on its heels at No. 5. Too, we note that Free People ranks as the

top, No. 1, new brand beginning to be worn among upper-income females.

AEO (+): MAINTAINING NEUTRAL RATING, BUT NOTE DENIM REBOUND COULD AID THIS LEGACY TEEN BRAND

American Eagle Outfitters has the sole distinction of being the only brand to consistently show on the top ten list for the entire 15-year,

30-survey history of our Taking Stock With Teens project. In the latest survey, AEO ranks No. 2 and No. 3, respectively, among upper-

income and average-income females and males.

GPS(-): REITERATING UNDERWEIGHT RATING; CONTINUED LACK OF RELEVANCE DURING DENIM REBOUND

Gap and Old Navy do not show in the top ten preferred clothing destinations, which is fine in absolute, but we note that they both

show consistently in the top three and top five brands no longer worn over the past five years. With denim on a rebound, we’re

concerned the brands are lacking relevance during an improving backdrop for a major category in the casual wardrobe.

LB (-): VS CEDING SHARE WITH A SHARPER-THAN-NORMAL DROP-OFF IN SIX MONTHS; CONTINUE TO MONITOR

Victoria Secret dropped somewhat dramatically from No. 2 to No. 7 as a preferred clothing brand among upper-income females.

Stock Highlights: Multi-Brand Retail & Specialty Commerce


Analyst: Erinn Murphy

Stock Highlights: Global Fashion & Lifestyle Brands

VFC (+): UPGRADING TO OVERWEIGHT FROM NEUTRAL; DENIM REBOUND SET TO BENEFIT COMPANY

Bellwether in apparel & footwear space with significant exposure to denim (23-25% of sales). Denim inflecting for first fall season

since 2010—from 11.6% of all upper-income female votes in 2014 to 13.8% in 2015. Vans remains steady as No. 2 brand for footwear.

GPRO (-): DOWNGRADING FROM OVERWEIGHT TO NEUTRAL; SOFTENING TRENDS INTO HOLIDAY

GoPro still top-of-mind among teens but we believe intent to purchase is decelerating. Product assortment already well-diversified

across price points & innovation appears to be taking a pause. Family ownership of GoPro is at 19.8% this Fall vs. 17.9% in Spring,

but the demand into Holiday appears to be moderating. To wit, 1.1% of overall teens listed a GoPro as a top-two gift wish this

upcoming holiday season, a deceleration from 1.6% in Spring.

NKE (+): REMAIN OVERWEIGHT; BRAND GAINS FURTHER SHARE DRIVEN BY WOMEN’S CATEGORY

Nike remains the top apparel and footwear brand among both upper- and average-income groups. We found NKE continued to gain

share among teens and experienced particular strength among female consumers.

KORS (-): REITERATE UNDERWEIGHT; LOST CONSIDERABLE SHARE AMONG UPPER-INCOME TEENS IN HANDBAGS

Michael Kors decelerated among upper-income as favorite handbag brand for first time. Still No. 1 but down from 39% in Spring to

31% in Fall. As a preferred watch, Michael Kors (No. 2) ticked down from 24% in Spring to 19% this Fall. Michael Kors’ consumers

seeing moderating intent to purchase a handbag in next six months—from 54% indicating “yes” in Spring to 43% in Fall.

FOSL (-): REITERATE UNDERWEIGHT; FOSL WATCH PORTFOLIO UNDERPERFORMING, APPLE GAINING SHARE

Fossil watch portfolio within watch brand preferences dropped to 27% of combined mindshare from 33% in Spring driven primarily by

Michael Kors. Michael Kors moved from 24% in Spring to 19% this Fall and the Fossil namesake brand moved from 7% to 5% in the

same period. Apple has seen rising interest among teens—in one year, it has moved from No. 11 to No. 5 preferred watch brand.


Analyst: Steph Wissink

Stock Highlights: Household, Beauty & Children’s Products

EL (+): SEVERAL BRANDS WITHIN PORTFOLIO RANK AMONG TEEN COSMETIC AND SKIN CARE PREFERENCES

MAC remains the No. 1 preferred brand cited by both upper and average income females. MAC has maintained the top spot in all but 2

of the last 10 years.

Clinique remains a top 10 brand for cosmetics, although it fell behind Benefit among upper income teens and behind Mary Kay among

average income teens.

Clinique remains a top 5 brand for skin care, achieving its highest rank and share in our most recent survey; it has been among the top

5 skin care brands for the last 3 years.

ULTA (+): DISCOVERY MINDSET IDEAL FOR SPECIALTY RETAIL; CHANNEL SHIFT EVIDENT

Ulta ranked No. 2 among preferred shopping destinations for beauty, achieving its highest rank and share in the history of our survey.

Average income teen girls favored Ulta at 23% of the vote vs. 19% among upper income teen girls, implying a much wider reach vs.

peers and recognizing the mass and prestige balance in the brand portfolio.

Spend in specialty beauty formats (61%) now exceeds all other channels combined (39%), according to our survey.

COTY (-): PENDING P&G MERGER MAY OVERVALUE COVERGIRL; RANK & SHARE DECLINES CONTINUE AMONG TEENS

CoverGirl (12%) ceded the No. 1 preferred cosmetics brand position in Spring 2015 and has donated near 12ppts of share from peak

(24%) among average income teen girls.

Among upper income teen girls, the brand has ceded rank and share from No. 2 and 20% in Spring 2010 to No. 4 and 9% in Fall 2015.

MAC, Maybelline, and Urban Decay now outrank CoverGirl.


Analyst: Gene Munster

Stock Highlights: Internet

AMZN (+): SURVEY SHOWS STEP UP IN MINDSHARE DESPITE ALREADY LARGE PRESENCE

Despite being the largest player in eCommerce globally, the PJC Teen Survey saw Amazon increasing mindshare among teens; the

number of teens indicating Amazon as their preferred eCommerce site increased to 38.3% from 36.3% in our Spring 2015 survey and

32.1% in our Fall 2014 survey. Moreover, household adoption of Prime of 47% increased by 400bps since our Spring 2015 survey.

We believe this bodes well for the long-term growth story of Amazon as teens are still a decade away from moving into power-spending

years; the strong adoption of Prime over the past 6 months also lends support to GMV growth during the Sep-15 quarter, in line with

our Amazon Search Index indicating unit growth of 22-23% (vs. 22% in Jun-15).

EBAY (-): EBAY CONTINUES SHARE LOSS AS CONSUMERS TURN TOWARD MORE STRUCTURED ECOMMERCE

Over the past four surveys (since Fall of 2013) eBay has been gradually losing share among teens, which we attribute to consumers

desiring the ubiquity of Amazon/online retailers over the hunt-and-peck search experience on eBay. eBay saw decreased mindshare to

4.5% in Fall 2015 from 4.9% in Fall 2014 and 4.5% in Spring 2015; we are cautious on the future of eBay Marketplace.

FB(+): INSTAGRAM REMAINS TOP FOR TEENS, SNAPCHAT 3RD AND RISING

33% of teens named Instagram the most important social network for them vs. 32% in Spring 2015. Twitter second with 20% of teens

down from 24% in Spring 2015. Snapchat rose to 19% from 13% in Spring 2015 and overtook Facebook (15%) for third. We believe

FB is well positioned to play in communication shift to picture and video based communication with Snapchat and Messenger. FB is

ready for next communication shift with Oculus.

AAPL (+): IPHONE OWNERSHIP & INTEREST REMAIN HIGH

67% of teens owned an iPhone vs. 66% in Spring 2015. 74% of teens expect their next phone to be an iPhone vs. 72% in Spring 2015.

Expect iPhone ownership to be relatively stable in the current ranges. Apple Watch interest declined to 8% of teens suggesting they

intend to buy a Watch vs. 11%in Spring 2015 and 16% in Fall 2014. 5% of teens currently own an Apple Watch implying 55% market

share among early smartwatch adopters.


Analyst: Mike Olson

Stock Highlights: Online Content

ATVI(+), EA(+), GME(+), TTWO(+): SURVEY POINTS TO FASTER UPTAKE OF NEXT-GEN CONSOLES COMPARED TO PRIOR CYCLE, TIME SPENT PLAYING VIDEO GAMES FLAT, AND ONGOING DEMAND FOR PRE-OWNED BUY/SELL/TRADE

Video game publishers (ATVI, EA, TTWO) will be beneficiaries of a faster uptake of next-gen consoles with 73% of respondents

expecting to buy a PS4 or X1 within the next two years or already owning one. This compares to 70% in our spring survey and 67% in

fall of 2014.

GameStop (GME) appears to continue to be well-positioned to capture a strong demand from consumers for pre-owned buy/sell/trade

capabilities; 53% of teen gamers said GameStop is where they buy/sell/trade used games, up from 48% in Spring 2015.

Mobile gaming interest and % of teens willing to pay to play mobile games remained stable/unchanged since Fall 2014. We see these

mobile gaming data points as neutral for GLUU (OW), KING (Neutral) and ZNGA (Neutral).


Analyst: Jon Berg (Peter Keith)

SKUL (+/-)

Intent to purchase improved Y/Y:

• 8.9% plan to buy Skullcandy headphones as next pair, up 70 bps from Fall 2014 but down 50 bps from Spring 2015.

• Skullcandy falls to 8.2% from 11.2% in Fall 2014 and 9.4% in Spring 2015 when asked what brand of headphones teens

currently own.

Share of teens asking for headphones as gifts is stable sequentially from Spring 2015 but down slightly on a Y/Y basis.

Percentage of teens planning to purchase headphones in next six months stepped up nicely on a sequential and Y/Y basis.

We anticipate improved brand penetration in our Spring 2016 survey based on current headphone demand trends and what will likely

be another strong advertising campaign from SKUL throughout the holiday selling period.

Stock Highlights: Hardlines Retail & Specialty Products


ICYMI: Quirky Stats From 15 Years Of Taking Stock With Teens

1Upper-income, all teens

Whether an average-income or upper-income household, teens still spend about 40% of their budget on fashion.

When asked what they want for a holiday gift, 84% of teens choose a specific gift over money or gift cards.

For 15 years across 30 surveys, only one retailer has been named in every top ten clothing list1: American Eagle.

Teens will make two trips to a restaurant for every one trip they make to a gas station.

Birkenstocks have officially arrived and are listed for the first time in top fashion trends among females.

First time we've ever seen a fashion footwear brand take 50% share among teens with Nike as No. 1.

Male teens spend more on video gaming than female teens spend on shoes.

Seventeen has topped the magazine charts every time among girls; guys continue to vote for Sports Illustrated.

Camping/Hiking cracked into the top five favorite sports for female teens.

In all 15 years across 30 surveys, despite the rise/fall of various media, friends remains the No. 1 influence.


SPEAKER COVERAGE

Neely Tamminga Multi-Brand Retail & Specialty Commerce

Erinn Murphy Global Fashion & Lifestyle Brands

Stephanie Wissink Household, Beauty & Children's Products

Gene Munster Internet

James Marsh Media & Entertainment

Mike Olson Online Content

Jon Berg Hardlines Retail & Specialty Products

Josh Long Restaurants

Questions & Answers

Appendix


Project Framework & Key Demographics

West, 17%

Midwest, 29%

Northeast, 8%

South, 45%

0%

10%

20%

30%

40%

50%

60%

2011 2012 2013 2014 2015

Vie

ws O

n T

he E

co

no

my

Getting Better Staying the Same Getting Worse

ALL TEENS Fall 2015 Spring 2015 Fall 2014 Spring 2014 Fall 2013 Spring 2013 Fall 2012 Spring 2012

Teens Surveyed 9,400 6,200 7,200 7,500 8,650 5,200 7,750 5,600

Gender - Female 44% 49% 47% 47% 47% 47% 47% 50%

Gender - Male 56% 51% 53% 53% 53% 53% 53% 50%

Average Age 16.0 16.3 16.0 16.4 16.2 16.3 16.1 16.3

Percentage Of Teens Part-Time Employed 36% 35% 35% 33% 35% 36% 36% 35%

Average Household Income $68,000 $67,000 $73,000 $63,000 $67,000 $69,000 $65,000 $70,000

UPPER-INCOME TEEN SURVEY Fall 2015 Spring 2015 Fall 2014 Spring 2014 Fall 2013 Spring 2013 Fall 2012 Spring 2012

Teens Surveyed - Upper Income 2,700 1,400 2,200 1,300 2,400 1,600 1,850 1,600

Gender - Female 41% 46% 46% 43% 44% 45% 42% 47%

Gender - Male 59% 54% 54% 57% 56% 55% 58% 53%

Average Age 15.9 16.2 16.1 16.2 16.1 16.1 16.0 16.1



AVERAGE-INCOME TEEN SURVEY Fall 2015 Spring 2015 Fall 2014 Spring 2014 Fall 2013 Spring 2013 Fall 2012 Spring 2012

Teens Surveyed - Average Income 6,700 4,800 5,000 6,200 6,250 3,600 5,900 4,000

Gender - Female 45% 49% 48% 48% 49% 47% 49% 51%

Gender - Male 55% 51% 52% 52% 51% 53% 51% 49%

Average Age 16.1 16.4 16.0 16.4 16.2 16.5 16.1 16.4




Fashion Spending Has Some Runway Back To The Mean

TOTAL SPENDING ACROSS BOTH INCOME DEMOGRAPHICS IS 3% ABOVE 11-YEAR AVERAGE

YET, FASHION SPENDING IS 3% BELOW THE 11-YEAR AVERAGE

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

Sprin

g 2

005

Fall

2005

Sprin

g 2

006

Fall

2006

Sprin

g 2

007

Fall

2007

Sprin

g 2

008

Fall

2008

Sprin

g 2

009

Fall

2009

Sprin

g 2

010

Fall

2010

Sprin

g 2

011

Fall

2011

Sprin

g 2

012

Fall

2012

Sprin

g 2

013

Fall

2013

Sprin

g 2

014

Fall

2014

Sprin

g 2

015

Fall

2015

Average: $2,550

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

Sp

rin

g 2

00

5

Fa

ll 2

005

Sp

rin

g 2

00

6

Fa

ll 2

006

Sp

rin

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00

7

Fa

ll 2

007

Sp

rin

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8

Fa

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Sp

rin

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9

Fa

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Sp

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0

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1

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Sprin

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Sp

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5

Fa

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Average: $1,050


The Fashion Basket Ticks Up Among Upper-Income Teens

SPENDING BY CATEGORY (UPPER-INCOME, ALL TEENS)

PRIORITIZATION IN FASHION SPENDING MORE PRONOUNCED BETWEEN GENDERS, NOT INCOMES

Spending by Category - All Teens Fall 2015 Spring 2015 Fall 2014 Spring 2014 Fall 2013 Spring 2013 Fall 2012 Spring 2012

Video games / systems 7% 8% 7% 7% 7% 6% 6% 7%

Music / movies (DVD/CD) 6% 6% 6% 6% 6% 7% 7% 8%

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

Clothing 20% 20% 21% 21% 21% 21% 22% 21%

Accessories/personal care/cosmetics 9% 10% 10% 9% 9% 10% 10% 10%

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

Food 22% 23% 20% 21% 20% 18% 19% 18%

Concerts/Movies/Sporting events 6% 6% 6% 6% 6% 6% 6% 6%

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

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

Furniture / room accessories 1% 1% 2% 1% 2% 2% 1% 1%

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

Total Fashion (Clothing, Access & Footwear) 38% 36% 39% 38% 39% 40% 40% 39%

0%

10%

20%

30%

40%

50%

Upper-Income Average-Income

0%

10%

20%

30%

40%

50%

Females Males


Shopping Channel Preferences Pointing To Uptick In Specialty

TIME SPENT IN SHOPPING CHANNELS (UPPER-INCOME, FEMALES)

TIME SPENT IN SHOPPING CHANNELS (UPPER-INCOME, ALL TEENS)

Fall 2015 Spring 2015 Fall 2014 Spring 2014 Fall 2013 Spring 2013 Fall 2012 Spring 2012

Specialty 33% 30% 28% 33% 31% 33% 34% 30%

Major Chain / Dept Store / Off Price 31% 33% 33% 29% 32% 20% 24% 32%

Discount 13% 13% 14% 14% 13% 17% 15% 17%

Outlet 10% 11% 12% 11% 12% 14% 14% 11%

Mail order 6% 6% 6% 6% 6% 4% 3% 3%

Online Only eTailers 8% 9% 7% 8% 7% 13% 9% 7%

Fall 2015 Spring 2015 Fall 2014 Spring 2014 Fall 2013 Spring 2013 Fall 2012 Spring 2012

Specialty 27% 26% 26% 27% 27% 26% 27% 25%

Major Chain / Dept Store / Off Price 29% 31% 31% 28% 30% 20% 23% 30%

Discount 12% 12% 14% 13% 12% 15% 15% 15%

Outlet 13% 12% 13% 13% 14% 15% 16% 12%

Mail order 6% 6% 6% 7% 6% 4% 4% 3%

Online Only eTailers 14% 13% 11% 13% 10% 18% 15% 15%


Off-Price Showing Some Signs Of Fatigue Among Teens

IS IT POPULAR TO SHOP AT OFF-PRICE STORES? (UPPER-INCOME, YES)

IF YOU SHOP AT OFF-PRICE STORES, DO YOU PREFER OFF-PRICE? (UPPER-INCOME, YES)

0%

20%

40%

60%

80%

100%


Female Male

0%

20%

40%

60%

80%

100%


Female Male


Top-Trending Fashion Trends Right Now

TOP FASHION TRENDS RIGHT NOW (UPPER-INCOME, FEMALES)

TOP FASHION TRENDS RIGHT NOW (UPPER-INCOME, MALES)


1 Leggings/lululemon 24% 1 Leggings/lululemon 33% 1 Leggings/lululemon 26% 1 Leggings/lululemon 31%

2 Nike 5% 2 Victoria's Secret 5% 2 Crop Tops 6% 2 Victoria's Secret 5%

3 Birkenstock 5% 3 Boots 4% 3 High-Waist Pants/Skirts 6% 3 UGG Australia 5%

4 Converse 4% 4 UGG Australia 4% 4 Nike 4% 4 Boots 4%

5 Victoria's Secret 4% 5 Nike 4% 5 Boots 3% 5 High-Waist Pants/Skirts 3%

6 Crop Tops 3% 6 Crop Tops 3% 6 Victoria's Secret 3% 6 Combat Boots 3%

7 Short Shorts 2% 7 Converse 2% 7 Preppy 2% 7 Crop Tops 3%

8 Rompers 2% 8 High-Waist Pants/Skirts 2% 8 UGG Australia 2% 8 Michael Kors 3%

Vineyard Vines 2% 9 Birkenstock 2% 9 Converse 2% 9 Scarves 2%

10 Dresses 2% Dresses 2% Dresses 2% 10 Forever 21 2%


1 Nike/Jordans 18% 1 Nike/Jordans 17% 1 Nike/Jordans 20% 1 Nike/Jordans 21%

2 Preppy 8% 2 Jogger Pants 10% 2 Preppy 11% 2 Ralph Lauren 10%

Ralph Lauren 8% 3 Ralph Lauren 9% 3 Ralph Lauren 10% 3 Boat Shoes 7%

4 Vineyard Vines 8% 4 Preppy 8% 4 Tall Socks 8% Shoes 7%

5 Jogger Pants 7% 5 Vineyard Vines 7% 5 Vineyard Vines 8% 5 Khakis/Chinos 4%

6 Boat Shoes 5% 6 Khakis/Chinos 5% 6 Boat Shoes 8% 6 Athletic Wear 3%

Khakis/Chinos 5% 7 Athletic Wear 4% 7 Athletic Wear 4% Timberland 3%

8 Athletic Wear 4% 8 Timberland 4% 8 Khakis/Chinos 3% 8 Preppy 2%

9 Tall Socks 4% 9 Boat Shoes 3% 9 Chubbies Shorts 2% 9 Polos 2%

10 Shoes 3% Tall Socks 3% 10 Jogger Pants 2% 10 Vineyard Vines 2%


Uptrending Brands

NEW BRANDS STARTING TO WEAR (UPPER-INCOME, FEMALES)

NEW BRANDS STARTING TO WEAR (UPPER-INCOME, MALES)


1 Free People 7% 1 lululemon 6% 1 Brandy Melville 6% 1 Forever 21 5%

2 Brandy Melville 5% 2 Nike 6% 2 American Eagle 6% 2 American Eagle 5%

3 lululemon 5% 3 Victoria's Secret 5% 3 Free People 5% lululemon 5%

4 Forever 21 4% 4 Forever 21 5% 4 PacSun 5% 4 Nike 4%

5 American Eagle 4% 5 H&M 5% 5 Urban Outfitters 4% 5 Urban Outfitters 4%

6 PacSun 4% 6 American Eagle 4% 6 H&M 4% 6 Pacific Sunwear 4%

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

8 Urban Outfitters 3% 8 Free People 3% Nike 4% 8 H&M 3%

9 Nike 3% 9 PacSun 3% 9 Hollister 4% Hollister 3%

10 H&M 3% 10 Express 3% 10 Vineyard Vines 3% J.Crew 3%


1 Nike 13% 1 Nike 15% 1 Nike 15% 1 Ralph Lauren 14%

2 Ralph Lauren 11% 2 Ralph Lauren 9% 2 Ralph Lauren 12% 2 Nike 13%

3 Adidas 6% 3 Under Armour 6% 3 Under Armour 5% 3 American Eagle 5%

4 Vineyard Vines 6% 4 Vineyard Vines 5% 4 American Eagle 5% 4 Under Armour 4%

5 Under Armour 4% 5 American Eagle 4% 5 Vineyard Vines 5% 5 Adidas 3%

6 American Eagle 4% 6 Adidas 3% 6 Adidas 3% 6 Vans 2%

7 Vans 3% 7 Vans 3% 7 Vans 3% 7 The North Face 2%

8 H&M 2% 8 Sperry Top-Sider 2% 8 Sperry Top-Sider 2% Vineyard Vines 2%

9 Tommy Hilfiger 2% 9 Express 2% 9 RVCA 2% 9 Express 2%

10 RVCA 2% Hollister 2% 10 H&M 2% 10 Diamond Supply Co. 1%

J. Crew 2%


Downtrending Brands

BRANDS NO LONGER WORN (UPPER-INCOME, FEMALES)

BRANDS NO LONGER WORN (UPPER-INCOME, MALES)


1 Aeropostale 22% 1 Aeropostale 28% 1 Aeropostale 28% 1 Aeropostale 32%

2 Justice 20% 2 Abercrombie & Fitch 19% 2 Abercrombie & Fitch 21% 2 Abercrombie & Fitch 19%

3 Abercrombie & Fitch 18% 3 Justice 14% 3 Justice 11% 3 Hollister 16%

4 Hollister 8% 4 Hollister 11% 4 Hollister 10% 4 Justice 8%

5 Gap 7% 5 Gap 5% 5 Gap 6% 5 Gap 5%

6 Old Navy 2% 6 Forever 21 2% 6 American Eagle 2% 6 American Eagle 3%

7 American Eagle 2% 7 Old Navy 2% 7 Forever 21 2% 7 Old Navy 1%

8 Forever 21 2% 8 American Eagle 2% Old Navy 2% 8 Nike 1%

9 dELiA*s 2% 9 dELiA*s 1% 9 Miss Me Jeans 1% 9 Forever 21 1%

10 Target 1% Miss Me Jeans 1% 10 Three Brands Tied 1% 10 Three Brands Tied 1%


1 Gap 13% 1 Gap 14% 1 Gap 14% 1 Gap 12%

2 Adidas 10% 2 Adidas 10% 2 Adidas 10% 2 Hollister 11%

3 Abercrombie & Fitch 8% 3 Abercrombie & Fitch 8% 3 Abercrombie & Fitch 9% 3 Abercrombie & Fitch 9%

4 Under Armour 6% 4 Aeropostale 6% 4 Aeropostale 7% 4 Aeropostale 9%

5 Nike 5% 5 Hollister 5% 5 Hollister 6% 5 Adidas 9%

6 Aeropostale 4% 6 Nike 5% 6 Under Armour 4% 6 American Eagle 8%

7 Hollister 4% 7 American Eagle 4% 7 Nike 4% 7 Reebok 4%

8 Reebok 4% Under Armour 4% 8 American Eagle 3% 8 Under Armour 4%

9 Skechers 4% 9 Reebok 3% 9 Reebok 3% 9 Nike 2%

10 Ralph Lauren 3% 10 DC Shoes 3% 10 Skechers 3% Quiksilver 2%

Puma 3%


Top Clothing Brands Among Upper-Income

PREFERRED CLOTHING BRANDS (UPPER-INCOME, ALL)

PREFERRED CLOTHING BRANDS (UPPER-INCOME, FEMALES)

PREFERRED CLOTHING BRANDS (UPPER-INCOME, MALES)


1 Nike 27% 1 Nike 24% 1 Nike 22% 1 Nike 23%

2 Forever 21 7% 2 Forever 21 8% 2 American Eagle 8% 2 Forever 21 8%

3 American Eagle 6% 3 American Eagle 6% 3 Forever 21 7% 3 American Eagle 8%

4 Ralph Lauren 5% 4 Ralph Lauren 4% 4 Ralph Lauren 6% 4 Ralph Lauren 6%

5 Urban Outfitters 3% 5 Victoria's Secret 4% 5 Urban Outfitters 4% 5 Hollister 3%

6 PacSun 2% 6 Urban Outfitters 3% 6 PacSun 4% 6 Urban Outfitters 3%

7 Free People 2% 7 Hollister 2% 7 Hollister 2% Victoria's Secret 3%

8 H&M 2% 8 Nordstrom 2% 8 Nordstrom 2% 8 PacSun 2%

9 Vineyard Vines 2% 9 Free People 2% 9 T.J. Maxx 2% Nordstrom 2%

10 Nordstrom 2% PacSun 2% 10 Victoria's Secret 2% 10 Abercrombie & Fitch 2%

Target 2%


1 Forever 21 15% 1 Forever 21 16% 1 Forever 21 14% 1 Forever 21 19%

2 American Eagle 10% 2 Victoria's Secret 7% 2 American Eagle 10% 2 American Eagle 9%

3 Urban Outfitters 7% 3 American Eagle 7% 3 Urban Outfitters 7% 3 Victoria's Secret 6%

4 Nike 6% 4 Nike 6% 4 PacSun 5% 4 Nike 5%

5 Free People 6% 5 Urban Outfitters 5% 5 Nordstrom 5% 5 Urban Outfitters 5%

6 Nordstrom 4% 6 Nordstrom 4% 6 Victoria's Secret 4% 6 Hollister 5%

7 Victoria's Secret 4% 7 Free People 4% 7 Nike 4% 7 Nordstrom 4%

8 PacSun 4% 8 Hollister 3% 8 Free People 4% 8 Target 3%

9 lululemon 3% 9 PacSun 3% 9 Hollister 4% 9 lululemon 3%

10 Hollister 3% 10 Four Brands Tied 2% 10 T.J. Maxx 3% PacSun 3%




3 American Eagle 4% 3 American Eagle 4% 3 American Eagle 6% 3 American Eagle 7%

4 Vineyard Vines 3% 4 Vineyard Vines 3% 4 PacSun 2% 4 Adidas 2%

5 Adidas 2% 5 Vans 2% 5 Vineyard Vines 2% Hollister 2%

6 H&M 2% 6 Adidas 2% 6 Vans 2% PacSun 2%

7 PacSun 2% Kohl's 2% 7 Adidas 2% 7 Vineyard Vines 2%

8 Abercrombie & Fitch 2% 8 J.Crew 2% 8 Under Armour 2% 8 Kohl's 2%

9 Kohl's 1% Under Armour 2% 9 Hollister 1% 9 Under Armour 2%

10 Hollister 1% 10 Hollister 2% Kohl's 1% 10 Diamond Supply Co. 1%

Vans 1% Express 1%


Top Clothing Brands Among Average-Income

PREFERRED CLOTHING BRANDS (AVERAGE-INCOME, ALL)

PREFERRED CLOTHING BRANDS (AVERAGE-INCOME, FEMALES)

PREFERRED CLOTHING BRANDS (AVERAGE-INCOME, MALES)



2 American Eagle 8% 2 Forever 21 7% 2 American Eagle 8% 2 Forever 21 8%

3 Forever 21 6% 3 American Eagle 7% 3 Forever 21 7% 3 American Eagle 7%


5 Hollister 4% 5 Hollister 4% 5 Hollister 4% 5 Hollister 5%

6 Victoria's Secret 4% 6 Victoria's Secret 4% 6 PacSun 3% 6 Victoria's Secret 3%

7 PacSun 2% 7 PacSun 3% 7 Victoria's Secret 2% 7 PacSun 3%

8 H&M 2% 8 H&M 2% 8 Aeropostale 2% 8 Aeropostale 3%

9 Hot Topic 2% 9 Kohl's 2% 9 Charlotte Russe 2% 9 Hot Topic 2%

10 Aeropostale 2% 10 Three Brands Tied rue21 2% 10 Kohl's 2%




3 Victoria's Secret 8% 3 Victoria's Secret 8% 3 Nike 5% 3 Victoria's Secret 6%

4 Nike 7% 4 Nike 6% 4 Hollister 5% 4 Hollister 5%

5 Hollister 6% 5 Hollister 5% 5 Victoria's Secret 5% 5 Nike 5%

6 PacSun 3% 6 Charlotte Russe 4% 6 Charlotte Russe 4% 6 PacSun 3%

7 rue21 3% 7 Urban Outfitters 3% 7 rue21 3% 7 Aeropostale 3%

8 H&M 3% 8 PacSun 3% 8 PacSun 3% 8 Charlotte Russe 3%

9 Hot Topic 3% 9 H&M 3% 9 Aeropostale 2% 9 rue21 2%

10 Aeropostale 2% 10 rue21 2% 10 Ralph Lauren 2% 10 T.J. Maxx 2%





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

5 Under Armour 3% 5 Hollister 3% 5 PacSun 3% 5 Aeropostale 3%

6 PacSun 2% 6 H&M 2% 6 Aeropostale 2% 6 PacSun 3%

7 Adidas 2% 7 Kohl's 2% 7 Levi's 2% 7 Levi's 2%

8 Vans 2% 8 Adidas 2% Under Armour 2% 8 Vans 2%

9 Levi's 2% Vans 2% Vans 2% 9 Under Armour 2%

10 H&M 2% 10 Aeropostale 2% 10 Adidas 1% 10 Hot Topic 2%


Top Footwear Brands Among Upper-Income

PREFERRED FOOTWEAR BRANDS (UPPER-INCOME, ALL)

PREFERRED FOOTWEAR BRANDS (UPPER-INCOME, FEMALES)

PREFERRED FOOTWEAR BRANDS (UPPER-INCOME, MALES)



2 Vans 9% 2 Vans 9% 2 Vans 10% 2 Vans 10%

3 Converse 7% 3 Converse 5% 3 Converse 6% 3 Sperry Top-Sider 4%

4 Sperry Top-Sider 4% 4 DSW 3% 4 Sperry Top-Sider 5% 4 Converse 4%

5 Steve Madden 3% Steve Madden 3% 5 Steve Madden 5% Steve Madden 4%

6 DSW 3% 6 Sperry Top-Sider 3% 6 DSW 4% 6 DSW 3%

7 Adidas 2% 7 UGG Australia 2% 7 Nordstrom 2% 7 UGG Australia 3%

8 Foot Locker 1% 8 Adidas 2% 8 Adidas 2% 8 Adidas 1%

9 Birkenstock 1% 9 Nordstrom 1% 9 UGG Australia 1% 9 Nordstrom 1%

Nordstrom 1% 10 Payless ShoeSource 1% 10 Payless ShoeSource 1% 10 Payless ShoeSource 1%



2 Converse 12% 2 Converse 10% 2 Converse 11% 2 Vans 13%

3 Vans 10% 3 Vans 9% 3 Steve Madden 10% 3 Steve Madden 9%

4 Steve Madden 8% 4 DSW 7% 4 Vans 10% 4 Converse 7%

5 DSW 7% Steve Madden 7% 5 DSW 8% 5 DSW 6%

6 Birkenstock 3% 6 UGG Australia 4% 6 Nordstrom 5% 6 UGG Australia 6%

7 Nordstrom 3% 7 Nordstrom 3% 7 Sperry Top-Sider 4% 7 Sperry Top-Sider 4%

8 Tory Burch 3% 8 Payless ShoeSource 3% 8 UGG Australia 3% 8 Nordstrom 3%

9 UGG Australia 2% 9 Sperry Top-Sider 2% 9 Payless ShoeSource 2% 9 Payless ShoeSource 3%

10 Sperry Top-Sider 2% 10 Famous Footwear 2% 10 Rainbow 2% 10 ALDO 2%

TOMS 2%




3 Sperry Top-Sider 5% 3 Sperry Top-Sider 3% 3 Sperry Top-Sider 5% 3 Sperry Top-Sider 4%

4 Adidas 3% 4 Adidas 3% 4 Adidas 3% 4 Adidas 2%

5 Converse 2% 5 Converse 2% 5 Converse 2% 5 Foot Locker 2%

6 Foot Locker 2% Foot Locker 2% 6 Ralph Lauren 1% 6 Converse 2%

7 New Balance 1% 7 New Balance 1% 7 Foot Locker 1% 7 New Balance 1%

8 Ralph Lauren 1% 8 Asics 1% 8 New Balance 1% 8 Champs Sports 1%

9 Under Armour 1% Ralph Lauren 1% 9 Dick's Sporting Goods 1% DC Shoes 1%

10 Champs Sports 0% 10 Clarks 1% Skechers 1% Reebok 1%

Puma 0% Timberland 1% Under Armour 1%


Top Footwear Brands Among Average-Income

PREFERRED FOOTWEAR BRANDS (AVERAGE-INCOME, ALL)

PREFERRED FOOTWEAR BRANDS (AVERAGE-INCOME, FEMALES)

PREFERRED FOOTWEAR BRANDS (AVERAGE-INCOME, MALES)



2 Converse 12% 2 Vans 12% 2 Vans 13% 2 Vans 11%

3 Vans 11% 3 Converse 10% 3 Converse 8% 3 Converse 6%

4 Steve Madden 3% 4 Steve Madden 4% 4 Steve Madden 5% 4 Steve Madden 5%

5 Sperry Top-Sider 2% 5 Payless ShoeSource 3% 5 UGG Australia 3% 5 Sperry Top-Sider 4%

6 DSW 2% 6 Sperry Top-Sider 3% 6 Sperry Top-Sider 3% 6 UGG Australia 3%

7 Payless ShoeSource 2% 7 UGG Australia 2% 7 Payless ShoeSource 2% 7 Payless ShoeSource 3%

8 Birkenstock 2% 8 Tory Burch 2% 8 TOMS 2% 8 TOMS 3%

9 Journeys 2% 9 DSW 2% 9 DSW 2% 9 DSW 3%

10 UGG Australia 2% 10 TOMS 2% 10 Jack Rogers 2% 10 Journeys 2%

Journeys 2%




3 Adidas 4% 3 Sperry Top-Sider 4% 3 Sperry Top-Sider 4% 3 Adidas 4%

4 Sperry Top-Sider 3% 4 Adidas 3% 4 Adidas 3% 4 Sperry Top-Sider 3%

5 Converse 2% 5 Converse 3% 5 Converse 2% 5 Converse 2%

6 Foot Locker 2% 6 Foot Locker 2% 6 Foot Locker 2% 6 Foot Locker 2%

7 Ralph Lauren 1% 7 New Balance 1% 7 DC Shoes 1% 7 Ralph Lauren 1%

8 Under Armour 1% 8 Ralph Lauren 1% 8 Finish Line 1% 8 New Balance 1%

9 Ariat 1% 9 DC Shoes 1% Ralph Lauren 1% 9 DC Shoes 1%

10 DC Shoes 1% 10 Champs Sports 1% 10 Under Armour 1% 10 Asics 1%




3 Converse 6% 3 Converse 7% 3 Converse 5% 3 Converse 4%

4 Sperry Top-Sider 3% 4 Sperry Top-Sider 3% 4 Sperry Top-Sider 4% 4 Sperry Top-Sider 3%

5 Adidas 2% 5 Adidas 2% 5 Steve Madden 3% 5 Adidas 2%

6 Foot Locker 2% 6 Steve Madden 2% 6 Adidas 2% 6 Steve Madden 2%

7 Steve Madden 1% 7 Foot Locker 2% 7 Foot Locker 2% 7 Foot Locker 2%

8 Payless ShoeSource 1% 8 Payless ShoeSource 1% 8 UGG Australia 2% 8 Payless ShoeSource 2%

9 DSW 1% 9 UGG Australia 1% 9 Payless ShoeSource 1% UGG Australia 2%

10 Birkenstock 1% 10 Three Brands Tied 1% 10 TOMS 1% 10 TOMS 2%


KORS Slips In Upper-Income Handbags; KATE Takes No. 2 Spot

PREFERRED HANDBAG BRANDS (UPPER-INCOME, FEMALES)

PREFERRED HANDBAG BRANDS (AVERAGE-INCOME, FEMALES)


1 Michael Kors 31% 1 Michael Kors 39% 1 Michael Kors 30% 1 Coach 29%

2 Kate Spade 15% 2 Coach 14% 2 Coach 18% 2 Michael Kors 26%

3 Coach 10% 3 Kate Spade 10% 3 Kate Spade 10% 3 Kate Spade 6%

4 Louis Vuitton 6% 4 Louis Vuitton 5% 4 Louis Vuitton 4% 4 Louis Vuitton 4%

5 Vera Bradley 5% 5 Vera Bradley 5% 5 Longchamp 4% 5 Vera Bradley 3%

6 Tory Burch 4% 6 Tory Burch 4% 6 Vera Bradley 4% 6 Chanel 3%

7 Gucci 3% 7 Chanel 2% 7 Chanel 3% Tory Burch 3%

8 Longchamp 3% 8 Target 2% Tory Burch 3% 8 Fossil 3%

9 Chanel 2% 9 Longchamp 1% 9 Marc Jacobs 3% 9 Longchamp 2%

10 Marc Jacobs 2% 10 Gucci 1% 10 Gucci 2% Marc Jacobs 2%

Marc Jacobs 1%


1 Michael Kors 44% 1 Michael Kors 39% 1 Michael Kors 38% 1 Michael Kors 31%

2 Coach 15% 2 Coach 17% 2 Coach 20% 2 Coach 27%

3 Kate Spade 6% 3 Kate Spade 6% 3 Vera Bradley 5% 3 Louis Vuitton 5%

4 Vera Bradley 5% 4 Louis Vuitton 4% 4 Louis Vuitton 4% 4 Vera Bradley 4%

5 Louis Vuitton 3% 5 Vera Bradley 3% 5 Gucci 3% 5 Gucci 4%

6 Gucci 2% 6 Gucci 2% 6 Kate Spade 3% 6 Chanel 2%

7 Chanel 2% 7 Chanel 2% 7 Fossil 2% Fossil 2%

8 Fossil 1% Tory Burch 2% 8 Chanel 2% Kate Spade 2%

9 Steve Madden 1% 9 Fossil 2% 9 Tory Burch 2% 9 Steve Madden 2%

10 Target 1% 10 Steve Madden 1% 10 Steve Madden 1% 10 Tory Burch 2%

Target 1%


Handbag Spending Intent By COH And KORS Customers

INTENT TO PURCHASE A HANDBAG OVER NEXT 6 MONTHS: UPPER-INCOME FEMALES

HISTORICAL HANDBAG SHARE BY BRAND

Fall 2015 Spring 2015 Fall 2014 Spring 2014 Fall 2013 Spring 2013

Yes 39% 45% 43% 43% 48% 52%

No 61% 55% 57% 57% 52% 48%

Yes 43% 54% 53% 54% 64% 61%

No 57% 46% 47% 46% 36% 39%

Yes 36% 34% 38% 41% 38% 49%

No 64% 66% 62% 59% 62% 51%

All Customers: Intent To Spend On Handbag In Next Six Months

Michael Kors Customer: Intent To Spend On Handbag In Next Six Months

Coach Customer: Intent To Spend On Handbag In Next Six Months

38% 36%30%

26% 29%

18%14% 15%

7% 9% 18%21%

26%

30% 39%31%

0%

10%

20%

30%

40%

50%

60%

70%

80%


Consolid

ate

d M

indshare

Coach Michael Kors Kate Spade Tory Burch Marc Jacobs


Top Athletic Clothing Brands Among Upper-Income

PREFERRED ATHLETIC CLOTHING BRANDS (UPPER-INCOME, ALL)

PREFERRED ATHLETIC CLOTHING BRANDS (UPPER-INCOME, FEMALES)

PREFERRED ATHLETIC CLOTHING BRANDS (UPPER-INCOME, MALES)



2 lululemon 7% 2 Under Armour 7% 2 Under Armour 8% 2 Under Armour 8%

3 Under Armour 6% 3 lululemon 4% 3 lululemon 6% 3 lululemon 5%


5 The North Face 1% 5 The North Face 1% 5 The North Face 1% 5 Bauer < 1%

Jordan < 1%

The North Face < 1%



2 lululemon 15% 2 lululemon 8% 2 lululemon 13% 2 lululemon 10%

3 Under Armour 5% 3 Under Armour 5% 3 Under Armour 7% 3 Under Armour 8%


5 The North Face 1% 5 The North Face 1% 5 The North Face 2% 5 The North Face 1%





4 Bauer 1% 4 The North Face 1% 4 Bauer 1% 4 Bauer 1%

5 The North Face 1% 5 Bauer 1% 5 Jordan 1% 5 Speedo 1%

Puma 1%


Top Athletic Clothing Brands Among Average-Income

PREFERRED ATHLETIC CLOTHING BRANDS (AVERAGE-INCOME, ALL)

PREFERRED ATHLETIC CLOTHING BRANDS (AVERAGE-INCOME, FEMALES)

PREFERRED ATHLETIC CLOTHING BRANDS (AVERAGE-INCOME, MALES)





4 lululemon 2% 4 lululemon 2% 4 lululemon 1% 4 lululemon 1%





3 lululemon 4% 3 Adidas 5% 3 Adidas 3% 3 Adidas 3%

4 Adidas 4% 4 lululemon 4% 4 lululemon 2% 4 lululemon 3%






4 The North Face 1% 4 Puma 1% 4 Columbia 1% 4 The North Face 1%

5 Mossy Oak 0% The North Face 1% 5 The North Face 1% 5 Jordan 1%


Top Athletic Footwear Brands Among Upper-Income

PREFERRED ATHLETIC FOOTWEAR BRANDS (UPPER-INCOME, ALL)

PREFERRED ATHLETIC FOOTWEAR BRANDS (UPPER-INCOME, FEMALES)

PREFERRED ATHLETIC FOOTWEAR BRANDS (UPPER-INCOME, MALES)




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

4 New Balance 2% 4 ASICS 1% 4 Jordan 1% 4 Jordan 1%

5 Under Armour 1% 5 Under Armour 1% 5 Under Armour 1% New Balance 1%

Under Armour 1%



2 Adidas 3% 2 Adidas 3% 2 ASICS 3% 2 Adidas 3%

3 ASICS 2% 3 ASICS 2% 3 Adidas 2% 3 ASICS 2%

4 Mizuno 1% 4 Mizuno 2% 4 Mizuno 1% 4 Saucony 1%

5 New Balance 1% New Balance 2% Saucony 1% 5 Brooks 1%

Under Armour 1%




3 New Balance 2% 3 Under Armour 2% 3 Jordan 2% 3 ASICS 2%

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

5 ASICS 2% 5 ASICS 1% 5 New Balance 1% New Balance 1%

Under Armour 1%


Top Athletic Footwear Brands Among Average-Income

PREFERRED ATHLETIC FOOTWEAR BRANDS (AVERAGE-INCOME, ALL)

PREFERRED ATHLETIC FOOTWEAR BRANDS (AVERAGE-INCOME, FEMALES)

PREFERRED ATHLETIC FOOTWEAR BRANDS (AVERAGE-INCOME, MALES)




3 Under Armour 3% 3 Under Armour 1% 3 Under Armour 2% 3 Jordan 2%

4 ASICS 2% 4 ASICS 1% 4 Jordan 2% 4 Under Armour 1%

5 New Balance 1% 5 New Balance 1% 5 ASICS 2% 5 ASICS 1%




3 ASICS 2% 3 ASICS 1% 3 ASICS 2% 3 Jordan 2%


5 Mizuno 1% 5 Mizuno 1% 5 Brooks 1% 5 Mizuno 1%

Jordan 1%




3 Under Armour 4% 3 Under Armour 2% 3 Under Armour 2% 3 Jordan 2%

4 ASICS 1% 4 ASICS 1% 4 Jordan 2% 4 ASICS 2%

5 New Balance 1% 5 New Balance 1% 5 ASICS 1% 5 Under Armour 1%


Top Sports Among Upper-Income

FAVORITE SPORT (UPPER-INCOME, ALL)

FAVORITE SPORT (UPPER-INCOME, FEMALES)

FAVORITE SPORT (UPPER-INCOME, MALES)


1 Soccer 16% 1 Soccer 14% 1 Soccer 16% 1 Basketball 13%

2 Basketball 12% 2 Basketball 11% 2 Basketball 12% 2 Soccer 11%

3 Football 10% 3 Running 10% 3 Football 9% 3 Football 9%

4 Running 8% 4 Football 8% 4 Running 8% 4 Baseball 7%

5 Baseball 6% 5 Baseball 6% 5 Baseball 6% 5 Running 7%


1 Soccer 19% 1 Soccer 16% 1 Soccer 18% 1 Soccer 12%

2 Running 12% 2 Running 14% 2 Running 12% 2 Running 11%

3 Volleyball 9% 3 Volleyball 8% 3 Volleyball 8% 3 Volleyball 10%

4 Camping 6% 4 Swimming 8% 4 Dance 6% 4 Swimming 7%

5 Basketball 6% 5 Cheerleading 7% Swimming 6% 5 Dance 7%


1 Football 16% 1 Basketball 16% 1 Basketball 17% 1 Basketball 18%

2 Basketball 16% 2 Football 14% 2 Football 15% 2 Football 15%

3 Soccer 14% 3 Soccer 13% 3 Soccer 13% 3 Baseball 12%

4 Baseball 11% 4 Baseball 11% 4 Baseball 10% 4 Soccer 10%

5 Lacrosse 5% 5 Lacrosse 6% 5 Lacrosse 5% 5 Lacrosse 6%


Top Sports Among Average-Income

FAVORITE SPORT (AVERAGE-INCOME, ALL)

FAVORITE SPORT (AVERAGE-INCOME, FEMALES)

FAVORITE SPORT (AVERAGE-INCOME, MALES)


1 Football 14% 1 Soccer 15% 1 Football 14% 1 Basketball 15%

2 Basketball 14% 2 Basketball 13% 2 Soccer 13% 2 Football 12%

3 Soccer 14% 3 Football 11% 3 Basketball 13% 3 Soccer 11%


5 Volleyball 6% 5 Volleyball 6% 5 Volleyball 6% 5 Volleyball 6%


1 Soccer 17% 1 Soccer 17% 1 Soccer 16% 1 Running 11%

2 Volleyball 13% 2 Running 14% 2 Volleyball 11% 2 Volleyball 11%

3 Running 10% 3 Volleyball 12% 3 Running 10% 3 Soccer 10%

4 Basketball 9% 4 Basketball 8% 4 Basketball 9% 4 Basketball 10%

5 Swimming 6% 5 Swimming 7% 5 Cheerleading 7% 5 Swimming 8%


1 Football 23% 1 Football 19% 1 Football 23% 1 Basketball 21%

2 Basketball 19% 2 Basketball 18% 2 Basketball 17% 2 Football 20%

3 Soccer 11% 3 Soccer 13% 3 Soccer 11% 3 Soccer 11%

4 Baseball 10% 4 Baseball 8% 4 Baseball 9% 4 Baseball 9%



Camcorder Trends: GoPro

OVERALL SHARE OF HOUSEHOLDS THAT OWN A GOPRO (ALL TEENS)

PERCENTAGE OF TEENS INDICATING GOPRO AS A TOP TWO HOLIDAY GIFT (ALL TEENS)

9.3%

12.6%

17.2%17.9%

19.8%


0.0% 0.0% 0.1% 0.0%

0.2%

0.4%0.3%

0.6%

1.3%

1.6%

1.0%

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

1.6%

1.8%

Fall2010

Spring2011

Fall2011

Spring2012

Fall2012

Spring2013

Fall2013

Spring2014

Fall2014

Spring2015

Fall2015


Preferred Camera Brands Among Teens

WHAT BRAND CAMCORDER DO YOU CURRENTLY OWN? (ALL TEENS)

WHAT BRAND CAMCORDER WOULD YOU PURCHASE? (ALL TEENS)

Rank Fall 2015 % Rank Spring 2015

1 Canon 26% 1 Canon 27%

2 GoPro 21% 2 Nikon 21%

3 Nikon 20% 3 GoPro 15%

4 Sony 13% 4 Sony 11%

5 Apple 5% 5 Kodak 7%

6 Samsung 4% 6 Samsung 5%

7 Kodak 4% 7 Apple 4%

8 Flip 1% 8 Flip 2%

9 Panasonic 1% 9 Nokia 2%

10 Nokia 1% 10 Fujifilm 1%

Rank Fall 2015 % Rank Spring 2015 %

1 Canon 28% 1 Canon 27%

2 GoPro 24% 2 GoPro 24%

3 Nikon 19% 3 Nikon 20%

4 Sony 8% 4 Sony 9%

5 Apple 5% 5 Kodak 4%

6 Samsung 4% 6 Apple 4%

7 Kodak 3% 7 Samsung 3%

8 Polaroid 2% 8 Polaroid 2%

9 Nokia 1% 9 Nokia 2%

10 Fujifilm 1% 10 Fujifilm 1%


Teen iPhone Ownership & Interest Increasing

DEVICE OWNERSHIP


Own an iPhone 55% 61% 67% 66% 67%

Expect next phone to be:

iPhone 65% 67% 73% 72% 74%

Android 24% 24% 19% 21% 19%

Blackberry 1% 1% 1% 1% 1%

Other Smartphone 7% 5% 5% 4% 4%

Non-Smartphone 4% 3% 2% 2% 2%

Own a tablet computer: 56% 60% 63% 62% 61%

iPad 60% 55% 54% 51% 50%

iPad Mini 8% 11% 12% 13% 15%

Android Tablet 23% 25% 16% 18% 17%

Windows Tablet 10% 10% 12%

Kindle Fire 9% 9% 8% 7% 6%

Plan to buy a tablet in next 6 months: 20% 18% 19% 14% 13%

iPad 52% 49% 46% 48% 46%

iPad Mini 12% 17% 14% 12% 12%

Android Tablet 28% 27% 16% 16% 16%

Windows Tablet 19% 20% 23%

Kindle Fire 8% 8% 5% 4% 3%

Own A Smartwatch 6% 7% 5% 9%

Would buy Apple Watch 17% 16% 11% 8%


Top Websites Among Upper-Income

PREFERRED WEBSITES (UPPER-INCOME, ALL)

PREFERRED WEBSITES (UPPER-INCOME, FEMALES)

PREFERRED WEBSITES (UPPER-INCOME, MALES)


1 Amazon 38% 1 Amazon 36% 1 Amazon 32% 1 Amazon 31%


3 eBay 4% 3 Forever 21 5% 3 eBay 5% 3 eBay 7%

4 Forever 21 3% 4 eBay 5% 4 Forever 21 5% 4 Forever 21 4%

5 Urban Outfitters 3% 5 Victoria's Secret 3% 5 Urban Outfitters 2% 5 Victoria's Secret 3%

6 American Eagle 2% 6 American Eagle 2% 6 Victoria's Secret 2% 6 Eastbay 2%

7 Eastbay 2% 7 Urban Outfitters 2% 7 American Eagle 2% 7 American Eagle 2%

8 Victoria's Secret 2% 8 Eastbay 1% 8 Nordstrom 2% 8 Urban Outfitters 1%

9 Nordstrom 2% 9 Brandy Melville 1% PacSun 2% 9 Dick's Sporting Goods 1%

10 PacSun 1% 10 Wanelo 1% 10 Brandy Melville 2% Wanelo 1%

Eastbay 2%




3 Urban Outfitters 6% 3 Victoria's Secret 8% 3 Victoria's Secret 5% 3 Victoria's Secret 7%

4 American Eagle 5% 4 eBay 4% 4 Nordstrom 4% 4 American Eagle 4%

5 Victoria's Secret 4% 5 American Eagle 4% 5 Brandy Melville 4% 5 eBay 4%

6 Nordstrom 4% 6 Urban Outfitters 3% 6 Urban Outfitters 4% 6 Wanelo 3%

7 Brandy Melville 3% 7 Brandy Melville 3% 7 American Eagle 3% 7 Urban Outfitters 3%

8 Hollister 3% 8 Wanelo 3% 8 Wanelo 3% 8 Nike 3%

9 Free People 3% 9 Charlotte Russe 2% 9 eBay 2% 9 Hollister 2%

10 Nike 2% 10 Nordstrom 2% 10 Hollister 2% lululemon 2%




3 eBay 6% 3 eBay 5% 3 eBay 7% 3 eBay 8%

4 Eastbay 3% 4 Eastbay 2% 4 Eastbay 3% 4 Eastbay 4%

5 Dick's Sporting Goods 2% 5 Steam 2% 5 PacSun 2% 5 Ralph Lauren 2%

6 Foot Locker 2% 6 American Eagle 1% 6 Dick's Sporting Goods 2% 6 Foot Locker 2%

7 PacSun 1% Dick's Sporting Goods 1% 7 Foot Locker 1% 7 Dick's Sporting Goods 2%

8 Vineyard Vines 1% 8 Foot Locker 1% 8 Ralph Lauren 1% 8 CCS 1%

9 Ralph Lauren 1% 9 Zappos 1% 9 Vineyard Vines 1% Finish Line 1%

10 Tilly's 1% 10 PacSun 1% 10 Karmaloop 1% PacSun 1%

Ralph Lauren 1% Urban Outfitters 1% Vineyard Vines 1%


TAKEAWAYS

When asked which brand of headphones teens plan to purchase next, Beats by Dr. Dre received 44.2% of responses, Apple received

31.7% and Skullcandy received 8.9%

Skullcandy’s share of future purchases accelerated 70 bps Y/Y but decelerated by 50 bps sequentially.

Headphone Brand Planning to Purchase Next

46

.1%

25

.3%

9.8

%

3.3

%

4.2

%

1.8

%

9.4

%

43

.7%

29

.8%

8.2

%

3.9

%

4.3

%

1.7

%

8.4

%

41

.9%

31

.2%

9.4

%

3.4

%

3.9

%

1.2

%

9.0

%

44

.2%

31

.7%

8.9

%

3.9

%

2.6

%

0.8

%

7.9

%

0%

10%

20%

30%

40%

50%

60%

Beats by Dr. Dre Apple Skullcandy Bose Sony JVC All others

Spring 2014 Fall 2014 Spring 2015 Fall 2015


TAKEAWAYS

Percentage of teens asking for headphones as gifts was roughly flat sequentially and slightly down Y/Y.

Percentage of teens planning to purchase headphones in next six months increased Y/Y and sequentially to 60.4%(from 57.6% in

Fall 2014 and 56.3% in Spring 2015).

Headphone Share of Teen Wish Lists

0.1%0.0% 0.1% 0.1%

0.1%0.2%

0.4%

0.6%

0.7%

2.6%

2.3%

1.7%

2.1%

1.7%1.6% 1.6%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

Spring2008

Fall2008

Spring2009

Fall2009

Spring2010

Fall2010

Spring2011

Fall2011

Spring2012

Fall2012

Spring2013

Fall2013

Spring2014

Fall2014

Spring2015

Fall2015


Restaurant Brand Preferences

PREFERRED RESTAURANTS (UPPER-INCOME, ALL)

PREFERRED RESTAURANTS (AVERAGE-INCOME, ALL)

No. 1 No. 2 No. 3 No. 4 No. 5

Fall Starbucks Chipotle Chick-fil-A McDonald's Panera Bread

Spring Starbucks Chipotle Chick-fil-A Panera Bread Olive Garden

Fall Starbucks Chipotle Chick-fil-A McDonald's Dunkin Donuts

Spring Starbucks Chipotle Chick-fil-A McDonald's Panera Bread

Fall Starbucks Chipotle McDonald's Chick-fil-A Panera Bread

Spring Starbucks Chipotle Panera Bread Chick-fil-A McDonald's

Fall Starbucks Chipotle McDonald's Olive Garden Chick-fil-A

Spring Starbucks Chipotle McDonald's Olive Garden Chick-fil-A

Fall Starbucks Chipotle McDonald's Olive Garden Dunkin Donuts


Fall Chipotle Starbucks McDonald's Olive Garden Chili's

Spring Starbucks Chipotle Olive Garden TGI Friday's Chili's

2015

2014

2013

2012

2011

2010

No. 1 No. 2 No. 3 No. 4 No. 5

Fall Starbucks McDonald's Chipotle Chick-fil-A Olive Garden


Fall Starbucks McDonald's Chipotle Chick-fil-A Taco Bell

Spring Starbucks McDonald's Chipotle Olive Garden Taco Bell

Fall Starbucks McDonald's Olive Garden Taco Bell Chipotle

Spring Starbucks McDonald's Olive Garden Taco Bell Buffalo Wild Wings

Fall Starbucks McDonald's Olive Garden Red Lobster Taco Bell

Spring Starbucks McDonald's Olive Garden Taco Bell Red Lobster

Fall Starbucks McDonald's Olive Garden Taco Bell Applebee's

Spring Starbucks McDonald's Olive Garden Taco Bell Applebee's

Fall McDonald's Starbucks Olive Garden Taco Bell Applebee's

Spring Starbucks Olive Garden McDonald's Applebee's Chili's

2015

2012

2010

2011

2013

2014


Nicole Miller Regan

Managing Director Sr. Research Analyst

Restaurants

James Marsh


Media &

Entertainment

Gene Munster


Internet

Sean Naughton

Principal Sr. Research Analyst

Healthy Living &

Consumables

Erinn Murphy


Global Fashion &

Lifestyle Brands

Mike Olson


Online Content

Neely Tamminga


Multi-Brand Retail &

Specialty Commerce

Steph Wissink


Household, Beauty &

Children’s Products

Peter Keith


Hardlines Retail &

Specialty Products

Meet Our Senior Analyst Team In Alphabetical Order


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