Teen spending rises 6% as fashion displaces athletic brands

Teen spending rose 6% year over year in fall 2026, with higher-income teens up 11%, according to Piper Sandler's 26th Annual Teen Survey. Apparel led the rebound at 7% growth, while footwear slipped 1% — a split that signals where roughly $65 billion in annual teen money is moving.

The survey covered almost 9,000 teens aged 13 to 19. Each teen self-reports spending about $2,350 per year, and Piper Sandler estimates total teen spending at about $65 billion.

Why does the rebound matter?

The 6% increase marks a sharp turnaround from 2025, when average teen spending fell 6% year over year. The recovery came despite worsening sentiment: 70% of teens said the economy is getting worse, up from 62% in fall 2025. Teens are spending more while feeling worse about their economic outlook, a divergence marketers should note.

Which brands are losing ground?

Athletic brands are ceding fashion territory. Nike, Adidas and Lululemon saw their combined fashion share fall to 29% from 32% last year, Piper Sandler said on LinkedIn. Three years ago the three brands collectively held 44%.

Lululemon lost mindshare for the fifth consecutive survey, with the decline sharpest among upper-income teen girls. In footwear, Nike still dominates at 45% of overall share, and Adidas and New Balance remain leaders. All three lost percentage points, while On gained share, especially with teen boys.

Where are teens shopping instead?

Specialty retailers captured 23% of fashion mindshare, up 8 percentage points year over year. The winners named in the survey:

• American Eagle
• H&M
• Pacsun
• Hollister
• Urban

Clothing accounted for 22% of overall spend among upper-income teens and 21% among average-income teens.

Amazon remains the dominant online destination, holding about 50% of upper-income teens' online shopping share; every other online retailer ranked in single digits. Target proved especially strong with upper-income teen girls: 50% shopped there for apparel and footwear, and 81% for beauty and skin care.

Secondhand retail also grew. Among upper-income teens, 44% bought clothing from secondhand shops, up from 42% a year earlier, even as the combined off-price, discount and outlet channel lost share with that demographic.

What is driving teen girls' spending?

Teen girls' fashion spend rose 13% in both apparel and accessories, while footwear stayed flat. Measured against fall 2024, girls' fashion spend climbed 15% over two years, driven by accessories up 19%, apparel up 18% and footwear up 1%.

Coach now leads the handbag rankings, with 60% of teen girls naming it their favorite brand. That figure was 43% in fall 2025 and just 23% in spring 2024 — a steep two-year climb. Ugg and Birkenstock led footwear preferences, Alo Yoga topped athletic apparel and Brandy Melville ranked high in general apparel.

Beauty spending among teen girls grew 7% year over year and reached a survey-high 23% of their wallet share. Hair care led at 10% growth, with cosmetics and skin care each up 5%. Elf took one-third of the cosmetics share, and Medicube entered the skin care top 10 in sixth place — the first K-beauty brand to do so.

The pattern is consistent across categories: teens are redirecting money from athletic wear and traditional footwear leaders toward accessories, specialty fashion and beauty, and Coach's climb from 23% to 60% preference in two years shows how quickly brand loyalty at this age can rebuild.