Retail watch: Winners and losers from Piper Sandler's survey of teenagers
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Piper Sandler released its semi-annual Taking Stock With Teens survey on Tuesday. The firm said the survey pointed to initial signs of a slowdown in teen spending. "Inflation reached its highest mindshare in terms of political and social issues, right behind the environment," noted Edward Yruma, senior research analyst.
However, there were pockets of strength with teenager spending trends. The core beauty wallet (cosmetics, skincare and fragrance) stood at $324 per year with cosmetics leading at +33% year-over-year. LVMH's (OTCPK:LVMHF) shot past Ulta Beauty (ULTA) to become the number one preferred beauty shopping destination with a loyalty membership of 67%. Cosmetics held the highest priority of beauty spending at $127, which was noted to be the highest level seen since 2019. e.l.f. Beauty (ELF) remained the top cosmetics brand, increasing an impressive 13 percentage points year-over-year to 29% for female teens. Selena Gomez's Rare Beauty brand ranked second.
Nike (NKE) held its position as the number one favorite brand among teens in both apparel and footwear, with 35% and 61% mindshare respectively. Nike took a percentage point off of both Lululemon (LULU) and Under Armour (UAA), compared to the spring survey. On Holding AG's (ONON) On Running brand jumped four spots to be the eighth favorite footwear brand, gaining 30 points of mindshare sequentially and 35 points year-over-year Notably, On Running outpaced Deckers Outdoor's (DECK) HOKA by 35 points in overall favorite footwear brad mindshare. However, HOKA still moved to the number three on the list of favorite athletic footwear brands among UI teens, up from number four in the Spring and Fall 2022, gaining +55 points of mindshare sequentially and +200 bps year-over-year.
In the energy drink sector, Monster Beverage (MNST) was preferred by 28% of teens and Red Bull was preferred by 23%. Celsius Holdings (CELH) jumped up to a 16% share of respondents saying it was their top energy drink pick. Of teens who cited Monster, Red Bull and Celsius as their favorite energy drink brand, slightly more teens plan to drink more Celsius (23%) than Monster (20%) and Red Bull (19%).
Plant-based meat did not fare will in the teen survey in a negative readout for Beyond Meat (BYND) and Impossible Foods (IMPF). 35% of teens indicated that they either consume or are willing to try plant-based meat, which was down from 42% in the spring survey and 49% in the spring 2021 teen survey.
Pepsico (PEP) had three of the top five snacks preferred by teenagers, with Lays, Doritos, and Cheetos products. Campbell Soup's (CPB) Goldfish line was once again the overall top pick.
Chick-fil-A stayed as the highest ranked restaurant at 16% share, while Starbucks added a point to claim 13% share and McDonald's (MCD) passed Chipotle for third place with 9% share. Darden Restaurants' (DRI) Olive Garden fell off the top five list for the first time in two years.

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