The popularity of athletic apparel and footwear are not the only factors slowing teen denim sales.
Of the 5,500 teens surveyed in the U.S., food makes up 24 percent of teen budgets eclipsing clothing at 19 percent. Meanwhile, 81 percent said they expect their next phone to be an iPhone, which was up from 79 percent in Fall 2016, the highest the survey has ever seen.
Despite the investments in experiences and technology, teens continue to have a strong stance on fashion. The survey found that the top trends for female teens are leggings, chokers and Converse, however, Nike nabbed the top spot as the most popular shoe brand among male and female teens.
The demand for athletic apparel shows no end in sight, with Nike ranked as the top apparel brand, followed by American Eagle, Forever 21, Lululemeon, Adidas and H&M. From a brand perspective, Piper Jaffray said Adidas is the fastest growing brand on the survey while Patagonia surprised to upside.
A mixed bag is falling out of fashion. The survey found that fashion brands losing relevance with teens include Under Armour, Michael Kors, The North Face, Ralph Lauren and Vineyard Vines.
“While the overall spending environment has been challenging, we are seeing teen spending continue to shift more toward experiences—eating out, video games and leisure,” said Erinn Murphy, Piper Jaffray senior research analyst. “Share of fashion spending has moderated but we continue to see undisputed strength in athletic—Nike remains the No. 1 preferred brand and Adidas was the fastest-growing brand in our survey.”