Piper Jaffray Companies (PJC) 34th biannual “Taking Stock with Teens” report has been released and Under Armour (UAA) has once again been named the No. 1 company teenage males perceive as an “old brand”, one they will no longer wear; while Nike (NKE) and Adidas AG (ADDYY) placed 1st and 3rd respectively, as the most preferred brands. As for footwear preferences, Nike remains #1, but lost 5% of teens (down to 46%) to Adidas over the last 12 months. The report indicates that athleisure remains popular, but trends are shifting towards “street, denim and festival wear”.
Howie Long-Short: For the first time in a generation, the majority of teens didn’t list Nike as their favorite footwear brand. Adidas has been getting a lot of the attention, but Puma (OTC: PMMAF) and New Balance are quietly picking up market share as well. Teenagers contribute $830 billion (7%) to retail’s bottom line, so their opinions (and purchases) aren’t insignificant.
Fan Marino: Nike is offering an unprecedented 40% off through 10/13. The sale includes 200+ items, including product from its premium Jordan Brand. Up until 18 months ago, Nike rarely ran sales. Now, I don’t buy Nike unless it is on sale (25% is offered frequently).