Converse Continues to Resonate with Teens
There’s some fancy footwork being done at Converse as it continues to resonate with consumers.
Piper Sandler’s recently released “Taking Stock With Teens” semi-annual report noted a number of popularity shifts, particularly with footwear companies, among the fickle teen consumer.
Converse, notably, held steady with its share at 10% to stay in the No. 2 spot for the third consecutive report, which Piper Sandler releases in the spring and fall of each year.
The ranking coincides with the turnaround in the Converse business over the past few years, with the brand most recently recording $612 million in revenue for parent Nike Inc.’s fiscal third quarter ended Feb. 28. That’s up 12%, excluding the impact of exchange rates, on a year-over-year basis, driven by double-digit gains seen in North America.
Footwear Results
The top four footwear brands – Nike, Converse, Adidas, and Vans, respectively – for Spring 2023 held their spots in the ranking when compared to Spring 2022.
Meanwhile, Crocs Inc.’s Hey Dude rose one spot in the ranking from Spring 2022 to No. 8.
But within those rankings, the amount of what Piper Sandler calls a brand’s “mindshare,” is shifting.
“Importantly, Crocs and Hey Dude both gained about 25 basis points of teen mindshare year-over-year,” wrote Piper Sandler Vice President and Senior Research Analyst Abbie Zvejnieks. “We think Hey Dude is taking share from Vans, which decreased in mindshare year-over-year and sequentially.”
New to the top 10 ranking was Ugg, which went from No. 19 in Spring 2022 to No. 7 in the recently released survey results.
Hoka continues to gain ground, increasing mindshare by about 170 basis points among teens, and moving from No. 25 in Spring 2022 to No. 19 in Spring 2023.
“This supports our thesis that Hoka continues to gain share in athletic footwear, while Ugg is trending and is taking share in North America,” Zvejnieks said in the report.
Piper Sandler’s Spring 2023 favorite footwear brands for teens across all incomes and genders are ranked as follows:
- Nike 61%
- Converse 10%
- Adidas 6%
- Vans 5%
- New Balance 2%
- Crocs 2%
- Ugg 1%
- Hey Dude 1%
- Dr. Martens 1%
- Foot Locker 1%
Back in Spring 2021, Vans had 12% share and the No. 2 spot.
Apparel Results
Spending on fashion, which combines apparel and accessories, was flat on a year-over-year basis and down 3% from the Fall 2022 report, according to Piper Sandler.
“We have increased concerns that the apparel/accessory spend cycle observed since Fall 2021 may be ending,” noted Piper Sandler Managing Director and Senior Research Analyst Edward Yruma in the report.
Nike continued to dominate in apparel, holding the top spot, where it has sat for the last dozen years.
Meanwhile, American Eagle bumped Lululemon from No. 2. Fast-fashion company Shein stayed in the No. 5 spot, but saw a 100-basis-point decline in mindshare from Fall 2022.
Overall, teen sentiment around the economy appears to be brightening from a year ago with 66% saying the economy is getting worse. About 71% had reported that in the year-ago report.
Teens’ favorite apparel brands were ranked as follows for Spring 2023:
- Nike 33%
- American Eagle 7%
- Lululemon 6%
- H&M 4%
- Shein 3%
- Adidas 3%
- Pacsun 2%
- Hollister 2%
- Brandy Melville 2%
- Urban Outfitters 1%
Piper Sandler’s report is based on a survey of 5,690 teens in 47 states. Most, about 43% of those surveyed, hailed from the South. Meanwhile, 22% are from the West, 26% from the Midwest, and 9% from the Northeast.
Kari Hamanaka can be reached at [email protected].
