Teen Spending Is Slowing Down. Young Shoppers Are Still Buying From These Brands. -- Barrons.com

Dow Jones
10/11

By Sabrina Escobar

Consumer spending may be proving shockingly resilient, but there's one demographic that seems poised to pull back this fall: Teenagers.

Teens reported spending about $2,213 this year, 6% less than a year ago, according to Piper Sandler's biannual "Taking Stock With Teens" survey. The survey polls just under 11,000 teenagers across 47 states.

Roughly two-thirds of the money teens spend in a year comes from parental contributions -- which suggests that household heads may be curbing allowances.

Teens' perspectives of the economy may also be influencing their spending plans. This fall, 62% of respondents said the broader economy was getting worse, compared with 57% in spring. Only 15% said conditions were improving, compared with 19% in the spring, and 23% said conditions were unchanged.

As a result, teens are looking for value, wrote Anna Andreeva, an analyst at Piper Sandler, which could help explain some of the declines in the spending estimates. Off-price retailers, outlets, and discounters are continuing to gain market share, even among upper-income teens, she added. From an e-commerce perspective, Amazon.com remained popular.

That said, teens are still willing to spend at their favorite brands. Nike, On Holding, and Birkenstock were some of teens' top footwear choices across all income levels. Nike was also the top apparel brand, followed by Abercrombie & Fitch's Hollister, American Eagle, and Lululemon Athletica.

Tapestry's Coach continued to claim the number-one handbag brand for all female teens, with 43% of respondents in that group saying it was their favorite brand compared with 35% in the spring. Sephora, Ulta Beauty, and E.l.f. Beauty were some of the group's favorite beauty retailers and brands, even though the estimated amount spent on beauty dipped 2% this fall. Bath & Body Works again topped the charts for favorite fragrance brand among teen women.

Walmart was another quiet winner this fall. The company has been gaining share among higher-income teens, with 17% of upper-income female teens saying they shopped at Walmart for apparel and footwear this fall, compared with 13% a year ago.

Target slightly lost share, with 47% saying they shopped there for clothes compared with 50% a year ago. On the whole, however, Target remained the preferred place for both apparel and beauty purchases among women.

Crocs, Nike's Jordan line, and Stanley tumblers were listed as trends "on the way out." Spending on athletic apparel also ticked down slightly, despite still being a strong trend. And though Lululemon was still a top brand, it lost some popularity among upper income girls who say they're trying other activewear brands.

Write to editors@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

 

(END) Dow Jones Newswires

October 10, 2025 14:19 ET (18:19 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.

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