FALL 2020 Taking Stock With Teens® 20 Years Of Researching U.S. Teens GenZ Insights

Piper Sandler does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decisions. This report should be read in conjunction with important disclosure information, including an attestation under Regulation Analyst Certification, found on pages 78 - 80 of this report or at the following site: http://www.pipersandler.com/researchdisclosures. Investment Risks

Risks to achievement of investment objectives include, but are not limited to, the following: • Reliance on key top management • Changing consumer preferences • Changes in input costs and raw materials • Markdown risks • Product flow and inventory disruptions • Competition • Lack of pricing power • Deleveraging of fixed expenses • Foreign exchange rate risk • General macroeconomic uncertainty

2 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research Table of Contents

01 02 03 04 Executive Teen Behavior & Teen Brand Demographics & Summary Habits Preferences Appendices

• Demographics • Gen Z Insights • Historic No. 1 Ranks • Survey Demographics • 20 Years of Teen • Top Social Media • Apparel & Footwear • Spending Breakdown Research • Spending Trends • Top Fashion Trends & Channel Trends • Key Takeaways • Channel Preferences • Up- & Downtrending • Top Brand Time Series • Views on the Economy • Secondhand & Rental • Accessories • Top Athletic Brands • COVID-19 Insights • Fashion Casualization • Beauty • Social Media History • Stock Highlights • Content Consumption • Websites • Content Consumption History • Smartphone Trends • Amazon Prime • Meet Our Senior • Video Games • Restaurants Analyst Team • Snacks • Plant Based Meat

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 3 40th Semi-Annual Proprietary GenZ Research Project

TEENS 9,800 SURVEYED 15.8 AVERAGE AGE 51% 48%

U.S. 1% 48 STATES MALE FEMALE NON-BINARY $67,500 24% AVERAGE HOUSEHOLD INCOME 42% 24%

10% TEENS CURRENTLY PART-TIME EMPLOYED 33% SOUTH WEST MIDWEST NORTHEAST Survey is executed in partnership with DECA The source for all charts/tables within this report is Piper Sandler.

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

4 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research Commemorating 20 Years Of Teen Research

2001 – 2020 –

Fallin’ – Alicia Keys WAP – Cardi B Week 4 September

George W. Bush

COVID-19, September 11, 2001 Current Affairs George Floyd, Breonna Taylor

Generation Gen Y Gen Z

Survey Size N=300; 10 States Taking Stock N=9,800; 48 States with Teens Top Brands Gap, Abercrombie & Nike, American Eagle, Fitch, Express adidas

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 5 Key Takeaways – Demographics & Spending

• This Fall marks 20 consecutive years of conducting primary research on the U.S. teen on a semi-annual basis

• Our 40th semi-annual survey was conducted between August 19 & September 22

• Regional responses impacted by school start dates: 42% in the South (vs. 44% Spring); NE at 10% (same as Spring)

• As a result of COVID-19, 76% of teens went back to school either in a hybrid format or fully virtual

• 8% of teens or an immediate member in their household have had COVID-19 (vs. national average of 6%)

• 48% of teens believe the economy is getting worse vs. 47% in Spring & 32% last Fall

• Teen “self-reported” spending at an all-time survey low of $2,150, down 5% sequentially & 9% Y/Y

• Areas of wallet share contraction included: Food (but still No. 1 priority) & Concerts/Events

• Areas of wallet share expansion included: Video Games, Movies & Furniture/Room Accessories

• Cosmetics spending for females down 20% Y/Y; skincare for females down only 3%; skincare for males up 12%

• In the next six months, teen intent to dine-in & fly on a plane is higher & to visit a retail store is lower

• Secondhand represents 8% of shopping time allocation, taking share from off-price, specialty & dept. stores

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

6 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research Key Takeaways – Brand & Preference Rankings

• Chick-Fil-A is No. 1 restaurant; Chipotle posted steady brand gains while Dunkin’ moved up to No. 4

• 18% of teens consume plant-based meat with Impossible Foods as the No. 1 choice

• Video games are 10% of total teen wallet share—new survey high; 63% expect to purchase a NextGen console

• Teens spend 34% of their daily video consumption on Netflix (gained share) followed by YouTube

• 54% of teens cite Amazon as their No. 1 favorite e-com site; SHEIN took No. 2 spot for first time (ahead of Nike)

• Ulta gained 400 bps of share as No. 1 beauty destination with 42% share; Target gained share; Amazon stays top-five

• Handbag spending at $87, a new low in survey; Louis Vuitton unseats Michael Kors for No. 1 spot; Coach gained share

• 86% of teens own an iPhone and 89% expect an iPhone to be their next phone; both new all-time highs

• Snapchat is the favorite social media platform (again) but Instagram fell from No. 2 to No. 3 as TikTok moved up to No. 2

• Significant movement in top social & political issues led by Racial Equality, Environment & Black Lives Matter

• Teens’ favorite celebrity is Kevin Hart and most followed influencer is David Dobrik

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 7 Teen Perspective Of The Broader Economy

60%

52% 48% 50%

40%

30%

28% 20%

10%

0% Spring Fall Spring Fall Spring Fall Spring Fall Spring Fall Spring Fall Spring Fall Spring Fall Spring Fall Spring Fall 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 2020

Getting Better Getting Worse

• 48% believe the economy is getting worse—this compares to 47% in Spring and 32% from Fall 2019

• 76% of teens have returned to school in either a hybrid or a fully-virtual format this Fall

• 33% of teens have a part-time job—this is down from 37% in Spring 2020 and 35% in Fall 2019

• 23% of teens indicated that COVID-19 has impacted their ability to find work

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

8 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research COVID-19 Insights Employment Impact Lockdown Unlocked

Did COVID-19 impact Since COVID… your part-time job or • 84% Visited a retailer ability to work? • 72% Dined-in a restaurant • 11% Flew on a plane

NO: 77% In the Next 6 Months… • 81% Plan to visit a retailer YES: 23% • 77% Plan to dine-in • 33% Expect to fly on a plane

47% Returned to School Virtually 24% 64% Returned to School In-Class Would take a Vaccine when available 29% Returned in a Hybrid Format COVID-19 Vaccine Back to School

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 9 Stock Highlights: Global Lifestyle Brands Erinn Murphy, Managing Director | Sr. Research Analyst NKE (+) HAS HELD ITS NO. 1 POSITION FOR 10 CONSECUTIVE YEARS; GAINS FURTHER SHARE Nike has been the No. 1 apparel brand in our survey for 10 years and further strengthened its lead at 27% share—up 400 bps vs. LY. As a preferred footwear brand, Nike represents 52% of teen preference gaining a substantial 1,000 bps share. Nike ranks as the top trend for teens with popular responses including AirForce 1s & Jordans. It is the No. 1 preferred athletic apparel & footwear brand among upper-income teens at 60% and 74% share, respectively.

LULU (+) BRAND HITS NEW SURVEY PEAK AS NO. 6 PREFERRED APPAREL BRAND lululemon is the No. 6 preferred apparel brand in our survey—moving up from No. 7 in Fall 2019. Among all females, it ranked No. 4 vs. No. 6 last year. Among upper-income females, it ranks No. 2 (behind AE) reaching 10% share. It ranked No. 8 among upper-income males vs. No. 9 last year. Leggings/lululemon are the No. 1 trend for females in school and lululemon is the No. 2 athletic apparel brand behind Nike—gaining 300 bps share Y/Y.

ELF (+) REGISTERS ALL TIME HIGH IN SURVEY e.l.f. is the No. 2 preferred makeup brand for all teens—up from No. 4 last year and marks its highest ranking to-date in our survey. We believe this has been fueled by the significant success the brand has had on TikTok. While not in the top-ten, it ranks No. 17 as a preferred skincare brand (vs. 16 last year); we note skincare is only 9% of tracked channel sales but 25% of dot com sales (as of Q1). We are pleased to see its core channels (ULTA, TGT, WMT & AMZN) all in the top-five preferred beauty shopping destinations.

ULTA (+/=) NO. 1 PREFERRED BEAUTY DESTINATION STRENGTHENS LEAD VS. SEPHORA ULTA continues to be in the best position to gain market share as we progress through the pandemic. It is the No. 1 beauty destination among teens at 42% share—up 400 bps from last year. Relative to No. 2 Sephora, it strengthened its lead, now 22 percentage points ahead vs. 15 percentage points last year. It took lead over Sephora among upper-income teens as well for the first time in our survey history. 86% of teens still prefer stores for beauty. Clearly spending in cosmetics is pressured, down 20% Y/Y as the pandemic is further altering behavior. We are seeing teen behavior moving from “everyday” (22%) makeup wearers to “sometimes” (55%) or “never” (23%) makeup wearers. Skincare spending is more resilient—down only 3% Y/Y.

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

10 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research Stock Highlights: Entertainment Technology Yung Kim, Assoc. Vice President | Sr. Research Analyst

NFLX (+) MAINTAINS SOLID POSITION WITHIN ONLINE VIDEO As teens see their households continue to migrate away from traditional TV services, we expect a growing transition of consumer content spend toward online video services. Netflix is first in teen daily video time spent at 33%, retaking the lead from YouTube at 31% and traditional TV at 11%. All three lost share to Disney+ and Apple+, each of which debuted in our survey at 7% and 2%, respectively. Looking into 2021 and beyond, despite increasing competition from Disney and Apple, we are optimistic regarding ongoing international sub growth and price increases amid the current environment and eventually a post Covid world.

ATVI (+) DIGITAL GROWTH AND CALL OF DUTY The transition to digital distribution is a positive for publisher margins and 61% of teens said they now download more than half of their games. Fortnite interest rebounded slightly, likely boosted by the Chapter 2 update in December, and sits at 39%, up from 37% in Fall-19, but significantly down from 53% in Spring- 19. Call of Duty: Blackout trailed only Fortnite as the most popular free-to-play title we listed and was up significantly to 33% from 26% in the fall. The next iteration of the stand-alone Call of Duty game is the most anticipated title for 2020 among 35% of teens vs. second place Cyberpunk 2077 at 7%.

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 11 Stock Highlights: Internet & Semiconductors Tom Champion, Director & Harsh Kumar, Managing Director | Sr. Research Analysts

AMZN (+) CONTINUES TO BUILD ON MARKET LEADERSHIP (covered by Tom Champion) Amazon is again the most widely used retailer among teens with 54% of respondents saying Amazon is their favorite online retailer (compared to second place at just 5%). This is up from 53% in Spring 2020 and 47% in Fall of 2018. The category dominance in the teen segment is underappreciated, in our view. Prime household subscription growth in the U.S. was also strong in the Fall 2020 survey with 84% of households using the service, an increase of 6% y/y. The Prime franchise is well understood by investors but we think it notable that Amazon is able to make subscription gains even in a relatively saturated US audience base. The combination of Prime adoption and the maturation of the teen cohort should serve as a powerful tailwind for many years to come.

AAPL (+) GROWING SHARE IN IPHONE AND WATCH (covered by Harsh Kumar) Both the 86% iPhone ownership and 89% intention to purchase an iPhone metrics are record highs for our Teen Survey, up from 85% and 88%, respectively, in Spring-20. We believe the increased penetration and intention are incredibly important for a maturing premium smartphone market. In addition, these trends are encouraging ahead of Apple’s 5G iPhone launch, which could provide a significant product cycle refresh. Also, the Apple Watch continues to be the top smartwatch among teens. The Apple Watch ownership was 25%, flat from the Spring-20 survey. We view the market share consistency as a great example of the company’s ability to drive hardware sales in the wearables/accessories market. Finally, we think these positive hardware trends can be a catalyst for further services growth, as the hardware installed based for Apple continues to grow.

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

12 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research Stock Highlights: Packaged Foods Michael Lavery, Director | Sr. Research Analyst K (+) KELLOGG HAD MOST PREFERRED BRAND MENTIONS IN OUR COVERAGE UNIVERSE Kellogg received the 3rd and 8th most preferred snack brand mentions by respondents through its Cheez-It (ahead of Doritos) and Pringles brands. Pringles was the 8th most preferred snack brand, up two spots from our 1H20 survey. Kellogg company brands received 13% of all responses as most preferred snack brands by teens, 2nd only to PepsiCo, and unchanged since 1H20.

CPB (+) GOLDFISH HAD 2ND MOST MOST PREFERRED SNACK BRAND MENTIONS Goldfish products were mentioned the second most number of times in the survey (after Lay’s) with Cape Cod chips, Pepperidge Farm, Snyder’s pretzels, and Kettle chips also receiving a notable amount of mentions. Goldfish had 10% of mentions among teens, up from 8% in 1H20. The company’s investments in its brands may be paying off, at least in terms of brand awareness among teens.

MDLZ (+) MONDELEZ PRODUCTS BROADLY SEE TEEN TRACTION, LED BY OREOS Mondelez products were named as most preferred snacks in 6% of all responses, unchanged from our 1H20 survey. Oreo led its mentions as the 6th most preferred snack. Ritz Crackers and Sour Patch also received many mentions by survey respondents.

BYND (+) TEENS SHOW STRONG INTEREST IN PLANT-BASED MEAT Of teens we surveyed, 18% consume plant-based meat. Of those who have tried it, Beyond Meat was the second most mentioned brand (33% of mentions), ahead of Kellogg’s Morningstar Farms (22%) but less than Impossible Burger (37%). We expect plant-based meat’s rapid growth to continue, as teens are more willing to try it than older consumers, based on our prior all-ages survey of US adults. Beyond is one of the early leaders in this growing category, but growing competitive pressure remains a risk.

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 13 Stock Highlights: Restaurants & Branded Hospitality Nicole Miller Regan, Managing Director | Sr. Research Analyst

CMG (+) STEADY BRAND SCORES Chipotle remains third most preferred brand among Upper Income teens (9% mindshare vs. 8% in Spring 2020, 6% in Fall 2019, 8% in Spring 2019, 8% in Fall 2018, 7% in Spring 2018, and 8% in Fall 2017). Chipotle experienced sequentially higher mind share levels among Average Income teens (#4 at 4% in Fall 2020 vs. #6 at 3% in Fall 2019) and within the brand’s historical range (as compared to #4 at 5% in Spring 2020, #6 at 3% in Spring 2019 and #4 at 4% in Fall 2018). We believe gaining Average Income mindshare presents the largest opportunity as marketing efforts aid awareness. Chipotle continues to be most preferred at Hispanic cuisine level across both Upper and Average income teens.

SBUX (=) REMAINS MOST PREFERRED PUBLIC COMPANY BRAND AMONG TEENS Starbucks maintained double-digit mindshare among Upper Income teens (10% mindshare vs. 12% in Spring 2020 vs. 11% in Fall 2019, 10% in Spring 2019, and 12% in Spring/Fall 2018). However, preference remains muted vs. historical peak levels (18% Fall 2013 & Spring 2007; 16% Spring 2008; 15% Fall 2014 & Spring 2009 & Fall 2007). Among Average Income teens, it maintained its No. 2 spot (albeit with 9% mindshare vs. 8% in Spring 2020 and 10% in Fall 2019). We continue to view Starbucks’ brand equity as relevant social currency and note it is the most preferred brand at the coffee cuisine level.

DNKN (+) MOVES INTO #4 POSITION ON STEADY MINDSHARE WITH ROOM TO GROW Dunkin’ maintained mindshare among both Upper and Average Income teens (3% mindshare in Spring and Fall 2020 vs. 2019 where the brand did not rank in the top 10 and vs. Spring 2018 at 2% mindshare). While absolute preference levels remain muted as compared to Starbucks this is in part driven by Dunkin’s legacy geographic concentration in the Northeast and Starbucks’ larger size overall. When considering Upper Income teen responses in the Northeast Dunkin’s mindshare is 6%.

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

14 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research Teen Behavior & Habits Executive Summary E Food & Snacks Food - Commerce Teen Teen Behavior & Habits PiperSandler InvestmentResearch Fashion & Beauty Fashion KeyThemes, Takeaways Trends & Teen Brand Teen Brand Preferences Taking Stock WithTeensSurvey-Fall2020 Results Social Media & Content Media Social Video Games Video Demographics Demographics & Appendices |15 GenZ Insights: They Actually Care About The World

Most Important Political & Social Issues

FALL 2019 SPRING 2020 FALL 2020 1 Environment 16% 1 Environment 16% 1 Racial Equality 19% 2 Immigration 12% 2 Coronavirus 11% 2 Environment 9% 3 Gun Control 10% 3 Abortion 8% 3 Black Lives Matter 8% 4 Abortion 8% 4 Gun Control 6% 4 2020 Election / Voting 7% 5 Racial Equality 7% 5 Racial Equality 6% 5 Coronavirus 6% 6 Donald Trump 4% 6 Immigration 6% 6 Abortion 5% 7 Bullying 3% 7 2020 Election / Voting 4% 7 Equality 5% 8 Equality 3% 8 Equality 4% 8 Immigration 2% 9 2020 Election / Voting 2% 9 Health Care 3% 9 Police Brutality 2% 10 LGBTQ+ Rights 2% 10 Donald Trump 2% 10 Gun Control 2%

• We started asking teens to “name a political or social issue that is important” to them for the first time in Fall 2019 • GenZ is unique in that they appear to care more about social justice & the environment versus former generations • We saw a significant move in teens advocating for Racial Equality (19%), taking the No. 1 spot; environment No. 2 • Additionally, specific mentions of Black Lives Matter movement ranked No. 3.; Police Brutality moved into the top-ten • Mentions of the 2020 Election outcome & Voting ranked No. 4 and Coronavirus moved down from No. 2 to No. 5

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

16 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research GenZ Gets Specific On Their Environmental Concerns

Top Environmental Concerns

1. Global Warming 6. Water 2. Pollution/Waste 7. Plastic 3. Natural Disasters 8. Deforestation 97% 4. Coronavirus 9. Air / Air Quality Of Teens List A Specific Concern 5. Wildfires 10. Wildlife

Teen Behavioral Changes

1. Driving Less; Walking/Biking More 44% 2. Wearing Re-Usable Masks Have Changed Their Behavior As A Result (vs. 46% in Fall 2019) 3. Recycling More & Reducing Waste/Litter

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 17 GenZ Insights...The Who’s Who?

Who They Like & Who They Follow

Favorite Celebrities Favorite Social Media Personalities 1. Kevin Hart 1. David Dobrik 2. Harry Styles 2. Emma Chamberlain (tie) LeBron James 3. LeBron James 4. Adam Sandler 4. Charli D’Amelio 5. Dwayne “The Rock” Johnson 5. Boys 6. Zendaya 6. Danny Duncan 7. Donald Trump 7. Donald Trump 8. Taylor Swift 8. Kylie Jenner 9. Tom Holland 9. Addison Rae 10. Travis Scott 10. Dwayne “The Rock” Johnson

• Kevin Hart and LeBron James re-affirmed their top spots in the minds of teens, while Harry Styles joined them. Zendaya moved up in the list; Tom Holland moved into the Top 10 • David Dobrik again reigned supreme for Social Media personalities; as seen in previous surveys, the list is dominated by YouTube and TikTok content creators. For the first time, a content house (Nelk Boys) appeared on the list

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

18 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research TikTok Moves To No. 2 Favorite Social Media Platform

Social Media Preferences

Highest Social Media Engagement Favorite Social Media Platform

1 Instagram 84% 1 Snapchat 34% 2 Snapchat 80% 2 TikTok 29% 3 TikTok 69% 3 Instagram 25% 4 39% 4 Discord 3% 5 Pinterest 32% 5 Twitter 3% 6 Facebook 28% 6 Facebook 2% 7 Discord 20% 7 Reddit 1% 8 Reddit 14% 8 Pinterest 1% 9 Other 4% 9 Other 1% 10 LinkedIn 3% 10 Linkedin 0%

• Instagram continues to lead the pack in usage / engagement followed by Snapchat & TikTok. TikTok moved up from 62% in Spring to 69% this Fall. • Snapchat was the No. 1 preferred social media platform. TikTok had another strong showing following its Spring debut moving up to the No. 2 spot from the No. 3 spot, unseating Instagram which moved down to No. 3. • The average teen claims to spend 12 hours per week on social media

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 19 What’s In Your Wallet? Food, Video Games & Clothing Upper-Income Teens

Males’ Wallet Share Females’ Wallet Share

1 Food 21% 1 Clothing 27%

2 Video Games 17% 2 Food 21%

3 Clothing 16% 3 Personal Care 11%

• Food remains the largest category for male spending, however, it fell 200 bps Y/Y • Video Games moved up from the No. 3 to the No. 2 priority in the male wallet at 17%--up 400 bps Y/Y • Clothing moved down from No. 2 to No. 3 at 16% share for males—down 100 bps Y/Y • Clothing remains the top-choice within the wallet for females, inline with Fall 2019; Food stayed at No. 2 • Personal care remained the No. 3 wallet choice for females at 11%--up 100 bps from Fall 2019

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

20 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research Teen Spending Down 9% Y/Y & Down 5% Vs. Spring All Teens $3,200

Peak Spend $3,023 $3,000

$2,800

$2,600

$2,400 $2,371 Trough

Annual Teenage Spend Per Year Per Spend Teenage Annual Spend

$2,200 $2,150

$2,000

Fall 2010 Fall Fall 2005 Fall 2006 Fall 2007 Fall 2008 Fall 2009 Fall 2011 Fall 2012 Fall 2013 Fall 2014 Fall 2015 Fall 2016 Fall 2017 Fall 2018 Fall 2019 Fall 2020 Fall

Spring 2009 Spring Spring 2005 Spring 2006 Spring 2007 Spring 2008 Spring 2010 Spring 2011 Spring 2012 Spring 2013 Spring 2014 Spring 2015 Spring 2016 Spring 2017 Spring 2018 Spring 2019 Spring 2020 Spring

• Teens self-reported spending ~$2,150 per year in our survey, implying total teen spending of ~$60B, assuming 27.7M teens ages 13-19.

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 21 Shopping Channel Preference Upper-Income Teens

• This Fall, we included “secondhand” as an option to the question, “when shopping for clothing, what % do you spend in the following channels?” Secondhand captured 8% of upper-income shopping channel preferences. • We saw specialty shed 200 bps share Y/Y and major chain/department stores down 100 bps Y/Y as did off-price • Despite altering our question, online/eTail remains ~22% of the shopping channel mix with teens

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

22 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research Time Spent Shopping Continues To Shift Online Upper-Income Teens Department Store/Specialty Online Only eTailers 45%

40%

35%

30%

25% Teens) 20%

15%

10% % Time Spent Shopping By Channel (UI Channel (UI ShoppingBy Spent Time %

• We see teens allocate less & less time in department stores & specialty as online becomes more important • Department stores & specialty combined represent 33% of shopping channel preferences—down from 36% LY • Online represents 22% of shopping channel mix, inline with Spring but down 100 bps from last year • In Fall 2020, we added a new option (secondhand) to the mix which could have pulled share from other channels • Of note, 86% of female teens preferred shopping for beauty in-store vs. online—this is down from 90% in Spring

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 23 Secondhand Market Adoption Upper-Income Teens

% of UI Teens Who Have Tried a Secondhand eCom Platform Thrift/Consignment Stores Ranked 46% #13 Have Purchased Secondhand As Favorite Brand/Retailer 58% This Compares to a Rank of Have Sold Secondhand #44 In Fall 2019’s Survey 28% Have Used a Secondhand eCom Platform

• We asked teens about their activity on popular Secondhand Marketplaces, including Poshmark, The RealReal, Tradesy, thredUp, Mercari, and Depop – above, Upper Income teen participation on these platforms is charted (left) • Of Note, Depop rose to the #10 position on Favorite Websites for all teens; StockX ranked No. 5 among males • Secondhand marketplace activity has picked up sequentially since the Spring, with UI Males moving from 13% to 18% and upper-income females increasing to 40%. • 46% of UI teens have PURCHASED clothes secondhand (either a marketplace or a thrift store) & 58% have SOLD on the Secondhand with female engagement higher than male

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

24 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research Rental Market Appetite Upper-Income Teens

Would You Pay a Monthly Fee For a Rent-and-Return Retail Service?

• Appetite from UI teens for a rent-and-return service to keep wardrobes fresh was roughly in-line sequentially – with UI male appetite up 100 bps from Spring’s survey to 26% and UI female team in-line at 37% • Appetite for a rent-and-return service is higher amongst Average Income Teens, with 34% having an appetite vs. 31% for Upper Income Teens; we first started asking these questions in Spring 2020

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 25 Athletic Apparel Trending Upward Aggregate Athletic Mindshare As Favorite Apparel Brand - Upper-Income Teens

• 38% of preferred apparel brands are “athletic,” up from 37% last Fall and 37% in Spring 2020. • Preppy brands such as Sperry, Ralph Lauren and Vineyard Vines continue to cede share to athletic brands.

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

26 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research Athletic Footwear Still Gaining Share Among Females Favorite Footwear Brand Mindshare - Upper-Income Female Teens

• 80% of females prefer an athletic brand of footwear (above), up 500 bps Y/Y and reaching a new survey high. • 88% of males prefer an athletic brand of footwear, 300 bps above the 2018-2019 average

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 27 Netflix & YouTube Top Platforms

Teen Daily Video Consumption

Spring 2020 Fall 2020

1 Netflix 33% 1 Netflix 34% 2 YouTube 31% 2 YouTube 32% 3 Cable TV 11% 3 Cable TV 9% 4 Hulu 8% 4 Hulu 7% 5 Disney+ 7% 5 Disney+ 6% 6 Amazon 3% 6 Amazon 3% 7 Apple TV+ 2% 7 Apple TV+ 1% 8 Facebook Watch tab 1% 8 Facebook Watch tab 1% 9 Other streaming 5% 9 Other streaming 6%

• On average, teens spend 34% of their daily video consumption on Netflix, up from 33% in Spring 2020 • YouTube gained 100 bps share an remained in the No. 2 spot at 32% (vs. 31% in Spring) • Disney+ (ranked #5) and AppleTV+ (#7) both declined slightly in only a second appearance in the Teen Survey garnering 6% and 1%, respectively, vs. 7% and 2% in the Spring • Traditional Cable TV remained #3, but dipped to 9% from 11%, while Hulu stayed at #4 but slid to 7% from 8% • See appendix for time series of data

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

28 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research Online Video Gaining Share

• Cord Nevers: 35% of teens in our survey indicated that they do not have cable TV in their household; this is up from 33% in the Spring.

• Cord Cutters: 7% of teens said they expect their household to cancel cable TV within the next 6 months, down slightly from 8% in the Spring.

• Migration of Time/Wallet to Online Video: As a result of these trends, we expect to see an ongoing transition toward online video / streaming services.

Are you planning to cancel your cable subscription over the next 6 months?

% of % of % of % of % of Students % of Students % of Students % of Students % of Students Spring Students Spring Students Spring Students Spring Students Fall 2016 2017 Fall 2017 2018 Fall 2018 2019 Fall 2019 2020 Fall 2020 I don't have cable 17% 17% 20% 22% 25% 28% 32% 33% 35% No 75% 72% 72% 69% 66% 62% 60% 58% 58% Yes 8% 10% 8% 10% 9% 10% 9% 8% 7%

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 29 Teen iPhone Ownership and Purchase Intent Up Slightly

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0% Fall-14 Spring- Fall-15 Spring- Fall-16 Spring- Fall-17 Spring-18 Fall-18 Spring-19 Fall-19 Spring-20 Fall-20 15 16 17

Own an iPhone Expect next phone to be an iPhone

• iPhone ownership was up to 86%, the highest we’ve seen. We note ownership is up from 83% in last Fall’s survey. • 89% of teens said their next phone will be an iPhone, up 3% from Fall 2019. 89% is the highest level we’ve seen in our survey.

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

30 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research Teen Apple Watch Ownership Remains Flat

35%

30%

25%

20%

15%

10%

5%

0%

Own A Smartwatch Plan to buy Apple Watch

• Smart watch ownership was down to 30% from 31% in Spring 2020. Apple Watch ownership was flat at 25% versus the Spring. • Apple Watch buying intent was down slightly, with 16% planning to buy in the next 6 months vs. 17% in the Spring.

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 31 Console Video Game Takeaways Do you or a member of your household own a gaming console?

X1 or PS4 X1 or PS4 and X360 or PS3 Nintendo Wii or Wii U X360 or PS3 Nintendo Switch No

4% 6% 5% 4% 5% 6% 5% 2% 3% 3% 5% 5% 6% 7% 7% 6% 5% 14% 10% 4% 4% 5% 5% 5% 4% 3% 6% 5%

35% 35% 35% 37% 35% 34% 35%

45% 45% 45% 46% 41% 42% 44%

Fall-17 Spring-18 Fall-18 Spring-19 Fall-19 Spring-20 Fall-20

• Teens playing Daily increased to 31% vs. 26% for Spring-20 while Teens who never play declined to 31% from 35%. The changes were the most significant we have recorded for each segment since Spring-08. • 57% of Teens said they are spending more time playing video games in 2020 vs 2019. This compares to only 33% in Spring-20, when our Survey was distributed at the onset of Covid. • A majority of teens, 63%, expect to purchase a next gen console (PS5 or Xbox Series X scheduled to launch in Nov.) within the next two years, this is up from 59% in Spring-20. • Percentage of teens who anticipate downloading the majority of games onto consoles is 67%, up from 61% for Spring-20 and up from 37% in Fall-15, when we first asked the question.

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

32 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research How Much Are Teens Spending Annually On Video Games?

$227 - Expected Video Game Spend in 2020 $250 17% - Budget Spent On Video Games in 2020 18% 16%

$200 14%

12%

$150 10%

8% $100

6%

4% $50

2%

$0 0%

Fall 2013 Fall

Fall 2014 Fall

Fall 2015 Fall

Fall 2016 Fall

Fall 2017 Fall

Fall 2018 Fall

Fall 2020 Fall

FaLL 2019 FaLL

Spring 2014 Spring

Spring 2015 Spring

Spring 2016 Spring

Spring 2017 Spring

Spring 2018 Spring

Spring 2019 Spring Spring 2020 Spring

Video Game Spend (Male+Female) Video Game Spend Allocation (Male)

• Expected spend by male teens on video games (as % of total budget) is 17% for Fall 2020, while total expected spend (male & female) is $227 • Food (21%) remained the largest expected spend for Teen males, but for the first time in our survey, Video Games (17%) jumped to second, ahead of clothing (16%) • Average video game spend by teens over the past 15 surveys is $197

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 33 Console Video Game Takeaways

Call of Duty Biggest Gainer, Fortnite Still Well Below Peak • Popularity of Call of Duty spiked in our survey to 62% from 33% for Spring-20, taking the lead in the category over Fortnite for the first time. In March, Activision launched Call of Duty: Warzone near the start of Covid regulations. • Fortnite dropped to 37% from 39% for Spring-20, and fell to #2 in our survey for the first time. Mindshare for the title remains significantly down from 53% in Spring-19. • Despite engagement with free-to-play titles, 44% of teens still expect to “buy as many other games as I used to” compared to 40% in the spring. 25% responded they would buy fewer games due to availability of free to play titles, down from 31%, while 14% said they would buy more games, flat.

Do you play any of the following free-to-play titles?

% of % of Students % of Students % of Spring Students Spring Students 2019 Fall 2019 2020 Fall 2020 Call of Duty 30% 26% 33% 62% Fortnite 53% 37% 39% 37% Apex Legends 31% 20% 22% 17% PUBG 19% 16% 16% 12% League of Legends 7% 7% 7% 5% I Do Not Play Any of These 26% 43% 38% 25%

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

34 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research Teen Mobile Game Trends

DO YOU PLAY GAMES ON YOUR MOBILE PHONE OR TABLET?

• 66% play games on smartphone or tablet, down from 72% in the Spring. • Drop potentially due to more time spent at home since the Spring.

% of % of % of % of Students % of Students % of Students % of % of % of % of % of Students Spring Students Spring Students Spring Students Students Students Students Students Fall 2015 2016 Fall 2016 2017 Fall 2017 2018 Fall 2018 Spring 2019 Fall 2019 Spring 2020 Fall 2020 Yes 79% 81% 77% 73% 72% 75% 69% 71% 70% 72% 66%

No 21% 19% 23% 27% 28% 25% 31% 29% 30% 28% 34%

WHEN PLAYING GAMES ON YOUR MOBILE DEVICE, DO YOU BUY VIRTUAL GOODS LIKE ENERGY, COINS OR EXTRA LEVELS?

• 27% of teens who play mobile games spend money in game, down only slightly from spring, despite the drop in players overall.

% of % of % of % of Students % of Students % of Students % of % of % of % of % of % of Students Spring Students Spring Students Spring Students Students Students Students Students Students Fall 2015 2016 Fall 2016 2017 Fall 2017 2018 Fall 2018 Spring 2019 Fall 2019 Spring 2020 Spring 2020 Fall 2020

Yes 24% 26% 24% 28% 28% 27% 28% 29% 28% 28% 28% 27%

No 76% 74% 76% 72% 72% 73% 72% 71% 72% 72% 72% 73%

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 35 Image Source: Nike Nike Source: Image 36 |

Taking Stock WithTeensSurvey-Fall2020 Results Teen Brand Preferences ExecutiveSummary Gap Spring 2001

Fall 2001 AbercrombieFitch & Spring 2002 Fall 2002 years3.5 Spring 2003 Fall 2003 Spring 2004 Fall 2004

TeenBehavior & Habits Spring 2005 Fall 2005 3.5 years3.5 Spring 2006 Hollister Fall 2006 PiperSandler InvestmentResearch Spring 2007 Fall 2007 Spring 2008

Fall 2008 Sports Action 2.5 years2.5

Spring 2009 Brands Fall 2009 Spring 2010 Teen Teen Brand Preferences Fall 2010

Spring 2011 Fall 2011 Spring 2012 Fall 2012 Spring 2013 Fall 2013 Spring 2014 Fall 2014 Spring 2015 10years Nike

Demographics Demographics & Appendices Fall 2015 Spring 2016 Fall 2016 Spring 2017 Fall 2017 Spring 2018 Fall 2018 Spring 2019 Fall 2019 Spring 2020 Fall 2020 Favorite Apparel Brands All Teens – See Appendix for more detail broken down by upper vs. average-income teens or male vs. female

SPRING 2019 FALL 2019 SPRING 2020 FALL 2020 1 Nike 22% 1 Nike 23% 1 Nike 25% 1 Nike 27% 2 American Eagle 9% 2 American Eagle 10% 2 American Eagle 10% 2 American Eagle 8% 3 Adidas 5% 3 Adidas 6% 3 Adidas 5% 3 Adidas 5% 4 Forever 21 5% 4 Hollister 4% 4 Hollister 4% 4 Pacsun 4% 5 Hollister 3% 5 PacSun 4% 5 PacSun 3% 5 Hollister 4% 6 PacSun 3% 6 Forever 21 3% 6 lululemon 3% 6 lululemon 3% 7 Urban Outfitters 3% 7 lululemon 3% 7 Forever 21 3% 7 H&M 3% 8 lululemon 3% 8 Vans 3% 8 Urban Outfitters 3% 8 Urban Outfitters 3% 9 Victoria's Secret 2% 9 H&M 2% 9 H&M 2% 9 Vans 2% 10 H&M 2% 10 Champion 2% 10 Vans 2% 10 Forever 21 2%

• Apparel spending was ~$507/year—down 11% Y/Y; females outspend males by ~$160 • Nike is the No. 1 brand (10 years running) and gains 400 bps Y/Y to 27% share • American Eagle remains its No. 2 spot but sheds 200 bps share; adidas rounds out the Top 3 • lululemon moves up Y/Y from No. 7 in Fall 2019 to No. 6 in Fall 2020 • H&M moves up from No. 9 to No. 7; Forever 21 moves down from No. 6 to No. 10 • Vans moved from No. 8 to No. 9 Y/Y with a corresponding 100 bps fall in share • Ralph Lauren drops from No. 11 to No. 18 while Victoria’s Secret falls from No. 13 to 22 Y/Y • SHEIN moved up to No. 11 with 2% of the vote vs No. 67 last fall with 0.1% of the vote

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Image Source: lululemon.com Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 37 Favorite Footwear Brands All Teens – See Appendix for more detail broken down by upper vs. average-income teens or male vs. female

SPRING 2019 FALL 2019 SPRING 2020 FALL 2020 1 Nike 41% 1 Nike 42% 1 Nike 47% 1 Nike 52% 2 Vans 20% 2 Vans 20% 2 Vans 20% 2 Vans 16% 3 Adidas 13% 3 Adidas 13% 3 Adidas 11% 3 Adidas 11% 4 Converse 5% 4 Converse 4% 4 Converse 4% 4 Converse 4% 5 Foot Locker 3% 5 Foot Locker 3% 5 Foot Locker 3% 5 Foot Locker 2% 6 New Balance 1% 6 Birkenstock 2% 6 New Balance 1% 6 Birkenstock 1% 7 Steve Madden 1% 7 Crocs 1% 7 Birkenstock 1% 7 Dr. Martens 1% 8 Birkenstock 1% New Balance 1% 8 Dr. Martens 1% 8 New Balance 1% 9 DSW 1% 9 Under Armour 1% Steve Madden 1% 9 Crocs 1% 10 Journeys 1% 10 Steve Madden 1% 10 Finish Line 1% 10 Steve Madden 1%

• Footwear spending was $275/year—down 6% Y/Y led by a decline of 600 bps in the male spend in the category • Female spending was also down 500 bps Y/Y; males now outspend females on footwear by ~$50 • Nike (No. 1) gains substantial share—up 1,000 bps Y/Y to 52% vs. 42% last year; taking share from Vans & adidas • Vans steady at the No. 2 position but down 400 bps to 16% share; Under Armour drops from No. 9 to No. 11 • Nike, Vans, Adidas, Converse, and Footlocker maintain their rankings order • Sperry remains out of the Top 10 moving to No. 34 from No. 16 last year • Crocs remains in the top ten—moving to No. 9 vs. No. 12 in Spring (No. 7 in Fall) • Dr. Martens moves up 1 rank from Spring to No. 7 and makes the Fall Top 10 for the first time

Image Source: Nike.com

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

38 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research Top Fashion Trends Right Now Upper-Income Teens

SPRING 2019 FALL 2019 SPRING 2020 FALL 2020 1 Nike / Jordans 14% 1 Nike / Jordans 13% 1 Nike / Jordans 14% 1 Nike / Jordans 15% 2 Athletic Wear 11% 2 Athletic Wear 11% 2 Athletic Wear 11% 2 Athletic Wear 8% 3 Vans 6% 3 Vans 7% 3 Vans 6% 3 Hoodies 6% 4 Jogger Pants 5% 4 Champion 5% 4 Jogger Pants 5% 4 5" Inseam Shorts 4% 5 Supreme 5% 5 Adidas 4% 5 Supreme 5% 5 Shorts 4% 6 Adidas 5% 6 Hoodies 3% 6 Adidas 5% 6 Short Shorts 4% 7 Hoodies 4% 7 Shorts 3% 7 Hoodies 4% 7 Jogger Pants 3% 8 Khakis / Chinos 3% 8 Sweatshirts 3% 8 Khakis / Chinos 3% 8 Flannels 3% 9 Leggings / lululemon 3% 9 Chains 3% 9 Leggings / lululemon 3% 9 Sweatshirts 3% 10 Flannels 3% 10 Short Shorts 2% 10 Flannels 3% 10 Vans 2%

Athletic (In Top 10) 47% Athletic (In Top 10) 47% Athletic (In Top 10) 49% Athletic (In Top 10) 42% Preppy (In Top 10) 3% Preppy (In Top 10) 2% Preppy (In Top 10) 4% Preppy (In Top 10) 4%

SPRING 2019 FALL 2019 SPRING 2020 FALL 2020 1 Leggings / lululemon 28% 1 Leggings / lululemon 17% 1 Leggings / lululemon 25% 1 Leggings / lululemon 21% 2 Vans 8% 2 Scrunchies 10% 2 Nike / Jordans 9% 2 Jeans 10% 3 Crop Tops 5% 3 Nike / Jordans 6% 3 Crop Tops 8% 3 Nike / Jordans 9% 4 Jeans 5% 4 Baggy / Saggy Pants 6% 4 Jeans 7% 4 Crop Tops 8% 5 Nike / Jordans 4% 5 Jeans 5% 5 Ripped Jeans 4% 5 Baggy / Saggy Pants 4% 6 Ripped Jeans 3% 6 Vans 5% 6 Scrunchies 3% 6 Oversized Tops 3% 7 Hair 2% 7 Crop Tops 4% 7 Vans 3% 7 Ripped Jeans 3% 8 Scrunchies 2% 8 VSCO 4% 8 Brandy Melville 3% 8 Brandy Melville 2% 9 Victoria's Secret 2% 9 Birkenstock 3% 9 VSCO 2% 9 Vans 2% 10 Athletic Wear 2% 10 Ripped Jeans 3% 10 Hoodies 2% 10 Athletic Wear 2%

Athletic (In Top 10) 42% Athletic (In Top 10) 28% Athletic (In Top 10) 39% Athletic (In Top 10) 35%

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 39 Top Brands Starting To Be Worn Upper-Income Teens

SPRING 2019 FALL 2019 SPRING 2020 FALL 2020 1 Adidas 15% 1 Adidas 15% 1 Champion 10% 1 Adidas 11% 2 Champion 9% 2 Champion 11% 2 Adidas 10% 2 Champion 10% 3 Nike 9% 3 Nike 9% 3 Nike 8% 3 Nike 10% 4 Under Armour 5% 4 Vans 7% 4 Vans 7% 4 Vans 5% 5 Vans 5% 5 Under Armour 4% 5 American Eagle 5% 5 Hollister 4% 6 American Eagle 4% 6 Hollister 3% 6 lululemon 5% 6 lululemon 4% 7 lululemon 4% 7 American Eagle 3% 7 Under Armour 4% 7 American Eagle 4% 8 Ralph Lauren 3% 8 lululemon 2% 8 Hollister 3% 8 Under Armour 3% 9 Vineyard Vines 3% 9 Ralph Lauren 2% 9 Ralph Lauren 3% 9 PacSun 2% 10 Gucci 2% Vineyard Vines 2% 10 Patagonia 2% 10 H&M 2% Hollister 2%

SPRING 2019 FALL 2019 SPRING 2020 FALL 2020 1 American Eagle 6% 1 American Eagle 8% 1 Brandy Melville 10% 1 SHEIN 7% 2 lululemon 6% 2 lululemon 7% 2 lululemon 9% 2 PacSun 7% 3 Vans 5% 3 Vans 7% 3 Champion 6% 3 lululemon 6% 4 PacSun 5% 4 Brandy Melville 6% 4 Urban Outfitters 5% 4 American Eagle 6% 5 Adidas 5% 5 Champion 5% 5 American Eagle 5% 5 Brandy Melville 6% Nike 5% 6 Urban Outfitters 4% 6 PacSun 5% 6 Nike 5% 7 Champion 5% 7 PacSun 4% 7 Adidas 4% 7 Hollister 4% 8 Brandy Melville 5% 8 Nike 3% 8 Vans 3% 8 Champion 3% 9 Urban Outfitters 4% 9 Hollister 3% 9 Nike 3% 9 Urban Outfitters 3% 10 Forever 21 4% 10 Adidas 3% 10 Free People 2% 10 H&M 2% Princess Polly 2% SHEIN 2%

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

40 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research Top Brands No Longer Worn Upper-Income Teens

SPRING 2019 FALL 2019 SPRING 2020 FALL 2020 1 Under Armour 15% 1 Under Armour 21% 1 Under Armour 23% 1 Under Armour 22% 2 Nike 12% 2 Nike 12% 2 Adidas 12% 2 Adidas 12% 3 Gap 10% 3 Adidas 7% 3 Nike 10% 3 Nike 12% 4 Adidas 8% 4 Gap 7% 4 Gap 8% 4 Gap 7% 5 Reebok 5% 5 Reebok 6% 5 Reebok 4% 5 Puma 5% 6 Puma 4% 6 Skechers 5% 6 Puma 4% 6 Reebok 4% 7 Skechers 4% 7 Puma 5% 7 Hollister 3% 7 Hollister 3% 8 Old Navy 3% 8 Old Navy 3% 8 Skechers 3% 8 Skechers 3% 9 American Eagle 2% 9 Vineyard Vines 3% 9 Champion 2% 9 Champion 3% Hollister 2% 10 Hollister 3% 10 Old Navy 2% 10 Ralph Lauren 2%

SPRING 2019 FALL 2019 SPRING 2020 FALL 2020 1 Justice 30% 1 Justice 38% 1 Justice 30% 1 Justice 26% 2 Aeropostale 9% 2 Aeropostale 7% 2 Aeropostale 8% 2 Hollister 8% 3 Hollister 8% 3 Gap 5% 3 American Eagle 6% 3 Forever 21 7% 4 Abercrombie & Fitch 7% 4 Abercrombie & Fitch 4% 4 Hollister 6% 4 American Eagle 6% 5 Gap 6% 5 Hollister 4% 5 Victoria's Secret 5% 5 Aeropostale 6% 6 American Eagle 5% 6 Forever 21 3% 6 Adidas 5% 6 Gap 5% 7 Forever 21 3% Nike 3% 7 Under Armour 4% 7 Adidas 5% 8 Nike 2% 8 American Eagle 3% 8 Gap 4% 8 Old Navy 4% 9 Old Navy 2% 9 Adidas 3% 9 Old Navy 4% 9 Abercrombie & Fitch 4% Victoria's Secret 2% Victoria's Secret 3% 10 Abercrombie & Fitch 4% 10 Victoria's Secret 3%

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 41 Favorite Handbag Brands All Female Teens

SPRING 2019 FALL 2019 Spring 2020 Fall 2020 1 Michael Kors 28% 1 Michael Kors 27% 1 Michael Kors 25% 1 Louis Vuitton 19% 2 Kate Spade 14% 2 Louis Vuitton 14% 2 Louis Vuitton 16% 2 Michael Kors 18% 3 Louis Vuitton 11% 3 Coach 11% 3 Kate Spade 12% 3 Coach 13% 4 Coach 11% 4 Kate Spade 11% 4 Coach 12% 4 Kate Spade 12% 5 Gucci 8% 5 Gucci 9% 5 Gucci 6% 5 Gucci 6% 6 Vera Bradley 4% 6 Vera Bradley 5% 6 Chanel 4% 6 Chanel 5% 7 Chanel 3% 7 Chanel 3% 7 Vera Bradley 3% 7 Vera Bradley 3% 8 Tory Burch 1% 8 Steve Madden 2% 8 Steve Madden 2% 8 Prada 3% 9 Calvin Klein 1% 9 Calvin Klein 1% 9 Guess 2% 9 Steve Madden 1% 10 Guess 1% 10 Guess 1% 10 Prada 1% 10 Target 1% Tommy Hilfiger 1% Tommy Hilfiger 1%

• Female teens self-report spend of $87/year on handbags; this is a new survey low and is down 3% Y/Y • Handbag peak spend was from Spring 2006 when teens spent $197/year on the category • Louis Vuitton takes the No. 1 spot for the first time in our survey history, unseating Michael Kors • Michael Kors falls from No. 1 to No. 2—dropping 900 bps year-over-year • Coach returns to the Top 3—gaining 200 bps share Y/Y; Kate Spade stands at No. 4 with 100 bps gain Y/Y • Gucci, Chanel and Prada all in the Top 10, although Gucci’s share falls 300 bps while Chanel and Prada both gain • Target rounds out the Top 10 list for the first time since Spring 2017 with 1% of the votes

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Image42 Source: | Taking MichaelKors.com Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research European Luxury Brands Continue To Gain Teen Mindshare

70% 64% 62% 60% 60% 57% 53% 49% 49% 50% Michael Kors + Kate Spade + Coach

43%

All Female Teens (% (% Teens Female All 40%

- 36%

30% 31%

30% 28% Mindshare) 23%

20% 17% 17% 13%

10% Preferred Handbag Brands Brands Handbag Preferred

0% Spring 2017 Fall 2017 Spring 2018 Fall 2018 Spring 2019 Fall 2019 Spring 2020 Fall 2020

• Accessible luxury, as measured by Michael Kors, Kate Spade & Coach, shed 600 bps of share Y/Y. • In Fall 2020, there were 18 luxury brands listed in our survey—this was slightly down from 20 brands in Fall 2019 • European luxury brands in total accounted for 36% of mindshare among preferred handbag brands, an increase of 600 bps Y/Y and well above the level of 13% from Spring 2017. Four luxury brands ranked in the top 10 this time. • While we think it is highly unlikely that teens are purchasing handbags from these brands in the primary market, we believe teens are responding favorably to the GenZ/Millennial-appropriate marketing direction that LVMH and Kering in particular are taking. Too, through robust development of secondary platforms like StockX and The RealReal, teens now have access to luxury for less.

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 43 Favorite Watch Brand Upper-Income Teens

FALL 2018 SPRING 2019 FALL 2019 SPRING 2020 FALL 2020 1 Rolex 42% 1 Rolex 42% 1 Rolex 39% 1 Rolex 36% 2 Apple 22% 2 Apple 25% 2 Apple 30% 2 Apple 35% 3 Michael Kors 5% 3 Fossil 3% 3 Fossil 3% 3 Fossil 3% 4 Fossil 4% 4 Michael Kors 3% 4 Fitbit 2% 4 Fitbit 2% 5 Fitbit 2% 5 Casio 2% 5 Casio 2% 5 Casio 2% Patek Philippe 2% 6 Gucci 2% Garmin 2% 6 Garmin 1% 7 Casio 2% 7 Richard Mille 2% 7 Michael Kors 2% 7 Gucci 1% 8 Gucci 2% 8 Fitbit 1% 8 Gucci 1% 8 Patek Philippe 1% 9 Audemars Piguet 1% 9 Garmin 1% Patek Philippe 1% 9 Tissot 1% 10 MVMT 1% 10 Nixon 1% 10 Seiko 1% 10 Michael Kors 1% Patek Philippe 1% Tag Heuer 1%

• 88% of upper-income teens do not plan to purchase a watch in the next six months vs. 84% in Spring & 79% last year • Rolex, still teens’ No. 1 watch brand, cedes share by 600 bps year-over-year • Apple, No. 2, gained 1,000 bps of share Y/Y (now 35%) in survey vs. 25% just one year ago • Fitbit has steadily moved up in our data series—now No. 4 at 2% share • Michael Kors’ watch rank and share continue to fall, moving from No. 4 last year to No. 10 at 1% share

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

44 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research Beauty: Favorite Shopping Destinations All Female Teens

SPRING 2019 FALL 2019 SPRING 2020 FALL 2020 1 Ulta 33% 1 Ulta 38% 1 Ulta 39% 1 Ulta 42% 2 Sephora 31% 2 Sephora 26% 2 Sephora 24% 2 Sephora 20% 3 Walmart 8% 3 Walmart 8% 3 Target 8% 3 Target 11% 4 Target 6% 4 Target 7% 4 Walmart 8% 4 Walmart 8% 5 Amazon 4% 5 Amazon 5% 5 Amazon 4% 5 Amazon 5% 6 Walgreens 1% 6 CVS 2% 6 Walgreens 2% 6 CVS 1% 7 CVS 1% 7 MAC 1% 7 Glossier 1% 7 Walgreens 1% 8 Morphe 1% 8 Morphe 1% 8 CVS 1% 8 Glossier 1% 9 MAC 1% 9 Glossier 1% 9 Macy's 1% 9 Ipsy 1% 10 Glossier 1% Walgreens 1% 10 Morphe 1% 10 Morphe 1%

• 86% of teens prefer to shop for beauty in-store vs. online; that said, this fell 400 bps since Spring • Ulta strengthens its position as the No. 1 preferred beauty destination at 42% share vs. 38% last year (+400 bps Y/Y) • Sephora stays at No. 2 but moves to 20% share vs. 26% last year (-600 bps Y/Y) • Target maintains the No. 3 spot after overtaking Walmart last spring with a corresponding 400 bps share gain Y/Y • The subscription based beauty service Ipsy broke into the top 10 for the first time at No. 9 receiving 1% of the vote • We saw minor share shifts between Walgreens, CVS and Glossier & Morphe; Macy’s fell to No. 17

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 45 Beauty: Favorite Skincare Brands All Female Teens

SPRING 2019 FALL 2019 SPRING 2020 FALL 2020 1 Neutrogena 18% 1 Neutrogena 18% 1 Neutrogena 16% 1 CeraVe 28% 2 Mario Badescu 7% 2 Mario Badescu 8% 2 Mario Badescu 10% 2 Neutrogena 10% 3 Clean & Clear 6% 3 Clean & Clear 8% 3 Cetaphil 7% 3 Cetaphil 10% 4 Clinique 6% 4 Cetaphil 6% 4 Clean & Clear 6% 4 The Ordinary 8% 5 Cetaphil 6% 5 Clinique 5% 5 Clinique 4% 5 Clean & Clear 3% 6 Proactiv 5% 6 Proactiv 4% 6 Proactiv 3% 6 Clinique 3% 7 Biore 2% 7 Aveeno 2% 7 CeraVe 3% 7 Curology 2% 8 CeraVe 2% Biore 2% 8 Curology 2% 8 Mario Badescu 2% Olay 2% 9 Burt's Bees 2% 9 Olay 2% 9 Proactiv 2% 10 Aveeno 2% 10 CeraVe 2% 10 Aveeno 2% 10 Rodan & Fields 1% Biore 2%

• Skincare spending for all female teens was $101/year—down 3% Y/Y and down 4% vs. multi-survey avg. of $106 • Skincare spending exceeded cosmetics spending for the first time in our survey history • CeraVe strongly jumped to the No. 1 position having been No. 10 last Fall & No. 7 in Spring, likely a result of high- levels of engagement on TikTok • Mario Badescu dropped from their stable No. 2 position to No. 8 with 2% of the vote, down 600 bps Y/Y—a nod that VSCO girls trend has slowed • The Ordinary shot to No. 4 while Rodan & Fields broke into the Top 10; Curology furthered its upward movement • Clinique’s share has dropped 100 bps per season since Spring 2019 and now represents 3% of teen share • Aveeno dropped out of the top 10 to No. 11 while Biore dropped from No 7 last fall to No. 22 this Fall

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

46 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research Beauty: Favorite Cosmetics Brands All Female Teens

SPRING 2019 FALL 2019 SPRING 2020 FALL 2020 1 Tarte 11% 1 Tarte 13% 1 Tarte 11% 1 Tarte 7% 2 Too Faced 8% 2 Too Faced 9% 2 Maybelline 9% 2 e.l.f. 6% 3 MAC 7% 3 Maybelline 7% 3 Too Faced 7% 3 Maybelline 6% 4 Morphe 7% 4 e.l.f. 6% 4 e.l.f. 5% 4 Morphe 5% 5 Maybelline 6% 5 Morphe 6% Fenty Beauty 5% 5 Too Faced 4% 6 e.l.f. 5% 6 MAC 6% Morphe 5% 6 MAC 4% 7 Anastasia Beverly Hills 5% 7 Fenty Beauty 5% 7 MAC 5% 7 L'Oreal 3% 8 Fenty Beauty 5% 8 Sephora 5% 8 CoverGirl 4% 8 Fenty Beauty 3% Sephora 5% 9 Anastasia Beverly Hills 4% 9 L'Oreal 4% Sephora 3% 10 CoverGirl 5% 10 L'Oreal 4% 10 Sephora 4% 10 Glossier 3%

• Female spending on cosmetics dropped to $84/year, a 20% contraction Y/Y and 51% since the peak of $173 in 2017 • Spending levels are now 31% below the multi-survey average of $124/year—we believe further pressured by CV-19 • Tarte (Kose-owned) remained the top-ranked cosmetics brand (6th consecutive survey) but decreased 400 bps to 7% • e.l.f. moved up nicely from No. 4 to No. 2—its highest rank we have seen to date in our survey • Too Faced dropped from the No. 2 spot last Fall to No. 5; MAC kept its No. 6 rank, albeit with 200 bps share loss • CoverGirl dropped out of the Top 10 & Anastasia Beverly Hills remained out of the Top 10 • Glossier came into the Top 10 for the first time (among all female teens)

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 47 Beauty: Shopping Channel Trends Favor Specialty Favorite Beauty Shopping Destinations – Upper-Income Female Teens

• 64% of UI teens prefer specialty formats for beauty shopping – down from 72% LY despite ULTA’s significant gain • Aggregate legacy channel (CVS, Macy’s, TGT, WMT, etc.) increased 300 bps share from 15% to 18% led by Target • Digital pure-plays, led by Amazon and followed by Glossier, captured 8% share—doubled Y/Y from 4% • When asked if they or their household purchase beauty/personal care on AMZN, 30% say “Yes” vs. 23% last Spring

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

48 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research Cosmetics Behavior Evolving Spurred By Pandemic All Female Teens

• We asked female teens if they wear makeup “everyday”, “sometimes” or “never” • We do not believe the makeup category is dead; however, we are seeing engagement in the category evolve. We have seen “everyday” makeup wearers rotate into “sometimes”; this dynamic shifted even further as a result of CV-19 • In Fall 2020, 55% of female teens indicated they wear makeup just “sometimes”, up 1,100 bps from Fall 2019 • We also saw females who “never” wear make up move to 23%--ahead of the “everyday” wearers (22%)

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 49 Beauty: Clean Beauty Highlights All Female Teens

Look At Ingredients In Their Beauty/ Personal Care Products 57% (vs. 47% in Fall 2019)

Willing To Spend More For “Clean” Or Natural Beauty 78% (vs. 75% in Fall 2019)

Average Pricing Premium For “Clean” Or Natural 28% (vs. 29% in Fall 2019)

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

50 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research Beauty Industry Is Hot For Influencers All Female Teens

• ~84% of females use online influencers as a source of discovery for beauty brands & trends—a further gain from LY • Word-of-mouth (“Friends”) remains the second most important decision influence when making a beauty purchase

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 51 Favorite Websites For Shopping Upper-Income Teens

SPRING 2019 FALL 2019 SPRING 2020 FALL 2020 1 Amazon 50% 1 Amazon 52% 1 Amazon 53% 1 Amazon 54% 2 Nike 5% 2 Nike 4% 2 Nike 5% 2 SHEIN 5% 3 Urban Outfitters 4% 3 American Eagle 3% 3 Urban Outfitters 2% 3 Nike 5% 4 American Eagle 3% 4 Urban Outfitters 2% 4 SHEIN 2% 4 PacSun 3% 5 Fashion Nova 2% 5 eBay 2% lululemon 2% 5 lululemon 2% 6 lululemon 2% PacSun 2% 6 PacSun 2% 6 Urban Outfitters 2% PacSun 2% 7 lululemon 2% 7 American Eagle 2% 7 American Eagle 2% 8 eBay 1% 8 Fashion Nova 2% 8 Princess Polly 2% 8 eBay 1% Forever 21 1% 9 Zumiez 1% eBay 2% Romwe 1% 10 Brandy Melville 1% 10 Adidas 1% 10 Brandy Melville 1% 10 Depop 1% Hollister 1% Princess Polly 1% ~50% Of 2015-2019 Softlines Dollar Growth In North America

• Amazon’s dominance continues as 54% of teens say this is their favorite website to shop on—up from 52% in Fall ‘19 • 90% of teens claim to shop online; of these online shoppers, 94% claim to shop on Amazon • SHEIN made a notable jump in our survey, unseating Nike as the No. 2 preferred website • lululemon moved up from No. 7 to No. 5 and Depop moved into the Top Ten for the first time

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

52 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research Amazon Dominates Teen Online Shopping Mindshare

All • Amazon maintained its SPRING 2019 FALL 2019 SPRING 2020 FALL 2020 upward trajectory with 54% 1 Amazon 50% 1 Amazon 52% 1 Amazon 53% 1 Amazon 54% 2 Nike 5% 2 Nike 4% 2 Nike 5% 2 SHEIN 5% of upper-income teens 3 Urban Outfitters 4% 3 American Eagle 3% 3 Urban Outfitters 2% 3 Nike 5% naming it as their favorite 4 American Eagle 3% 4 Urban Outfitters 2% 4 SHEIN 2% 4 PacSun 3% 5 Fashion Nova 2% 5 eBay 2% lululemon 2% 5 lululemon 2% e-commerce site—up from 6 lululemon 2% PacSun 2% 6 PacSun 2% 6 Urban Outfitters 2% PacSun 2% 7 lululemon 2% 7 American Eagle 2% 7 American Eagle 2% 52% last year. 8 eBay 1% 8 Fashion Nova 2% 8 Princess Polly 2% 8 eBay 1% Forever 21 1% 9 Zumiez 1% eBay 2% Romwe 1% 10 Brandy Melville 1% 10 Adidas 1% 10 Brandy Melville 1% 10 Depop 1% Hollister 1% Princess Polly 1% • Among females, Amazon Females captured 44% unchanged SPRING 2019 FALL 2019 SPRING 2020 FALL 2020 from LY. SHEIN is now No. 1 Amazon 38% 1 Amazon 44% 1 Amazon 43% 1 Amazon 44% 2 Urban Outfitters 7% 2 American Eagle 6% 2 SHEIN 5% 2 SHEIN 11% 2 at 11% share (vs. 3% 3 American Eagle 7% 3 Urban Outfitters 4% 3 Urban Outfitters 5% 3 lululemon 4% LY). Fashion Nova 4 Fashion Nova 4% 4 lululemon 3% 4 lululemon 4% PacSun 4% 5 lululemon 4% 5 Fashion Nova 3% 5 American Eagle 4% 5 American Eagle 3% remained out of the Top 10 6 Forever 21 3% 6 SHEIN 3% 6 Princess Polly 3% 6 Urban Outfitters 3% 7 Brandy Melville 3% 7 Brandy Melville 3% 7 PacSun 3% 7 Romwe 2% & Depop (secondhand) Zaful 3% 8 PacSun 2% 8 Brandy Melville 3% 8 Princess Polly 2% moved up to No. 9. 9 PacSun 2% 9 Hollister 2% 9 Romwe 2% 9 Depop 2% Romwe 2% 10 Forever 21 2% 10 Nike 2% 10 Brandy Melville 2% Zaful 2% Etsy 2% Males • Amazon captured 63% of SPRING 2019 FALL 2019 SPRING 2020 FALL 2020 1 Amazon 59% 1 Amazon 58% 1 Amazon 63% 1 Amazon 63% the overall male vote this 2 Nike 7% 2 Nike 6% 2 Nike 7% 2 Nike 9% 3 eBay 2% 3 eBay 3% 3 eBay 3% 3 eBay 2% Fall up 500 bps Y/Y. 4 Adidas 2% 4 PacSun 2% 4 StockX 2% 4 PacSun 2% StockX moved up to No. 5 5 Supreme 1% Zumiez 2% 5 PacSun 2% 5 StockX 2% 6 Foot Locker 1% 6 Adidas 2% 6 Adidas 1% 6 Urban Outfitters 1% vs. No. 7 LY. GOAT PacSun 1% 7 StockX 2% 7 Tilly's 1% 7 Adidas 1% remained No. 8 & 8 Dick's Sporting Goods 1% 8 GOAT 1% 8 Grailed 1% 8 GOAT 1% 9 StockX 1% 9 Dick's Sporting Goods 1% 9 7 Sites Tied 1% lululemon 1% lululemon moved into the 10 Urban Outfitters 1% Supreme 1% Tillys 1% Top 10.

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 53 Closer Look At Amazon Prime Growth

• Prime Adoption is at 84% vs. 78% in Fall 2019 (y/y). Adoption among the less than $21K income bracket saw the biggest gains y/y (+14ppts), while $41K-$68K and $68K-$112K respondents both increased 7ppts y/y. • Based on responses proportionate to income brackets, we estimate US Prime households close to 93.5 million, up from 88M last fall and consistent with Amazon commentary in January of >150M global prime members, up from >100M in March ’18.

Source: Piper Sandler Cos, U.S. Census Bureau

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

54 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research Restaurant Spending Trends Food Spending Tied For Largest Piece of Teen Wallet

• In the current cycle, teens’ spending on restaurants accounted for 21% of the overall Upper Income wallet. This level was uncharacteristically in-line with (vs. typically a premium to) clothing spend at 21% and represents the lowest level of spending since Fall 2014. • That said, restaurant spending has been on a steady march higher in terms of accounting for an increasing proportion of the broader teen wallet, over time. Although the near-term trend has experienced disruption we believe the underpinnings of teens’ longstanding preference for restaurant and dining out occasions will rebound as mobility and behavioral spending patterns return.

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 55 Restaurant Spending Trends Continued Preference For Limited Service Brands

• Teens continue to overwhelmingly prefer limited service restaurant brands relative to full service brands. • This trend was originally fueled by an overarching preference for social experiences with friends and occasions/brands that offer more compelling relative affordability (which we view as a combination of food quality, variety, and lower levels of absolute pricing).

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

56 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research Favorite Restaurants

PREFERRED BRANDS (UPPER INCOME)

PREFERRED BRANDS (AVERAGE INCOME)

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 57 Favorite Snack Brand

Favorite Snack Brand

FALL 2019 SPRING 2020 FALL 2020 1 Lays (PEP) 10% 1 Lays (PEP) 9% 1 Lays (PEP) 10% 2 Goldfish (CPB) 9% 2 Goldfish (CPB) 8% 2 Goldfish (CPB) 10% 3 Cheez-It (K) 8% 3 Cheez-It (K) 7% 3 Cheez-It (K) 9% 4 Doritos (PEP) 6% 4 Doritos (PEP) 6% 4 Doritos (PEP) 6% 5 Cheetos (PEP) 5% 5 Cheetos (PEP) 6% 5 Cheetos (PEP) 5% 6 Takis (Bimbo) 3% 6 Oreo (MDLZ) 3% 6 Oreo (MDLZ) 3% 7 Little Debbie (private) 3% 7 Little Debbie (private) 2% 7 Takis (Bimbo) 3% 8 Oreo (MDLZ) 3% 8 Nature Valley (GIS) 2% 8 Pringles (K) 2% 9 Nature Valley (GIS) 2% 9 Takis (Bimbo) 2% 9 Little Debbie (private) 2% 10 Pringles (K) 2% 10 Pringles (K) 2% 10 Welch's (private) 2%

• The top six brands remain favorites as Lays, Goldfish, Cheez-It, Doritos, Cheetos, and Oreo hold their positions • We saw gains for Lays & Goldfish both hitting double-digit penetration this Fall; Cheez-It gained 200 bps vs. Spring • The bottom rankings within the top-ten list did see changes: both Pringles and Takis move up; Welch’s enters the top- ten list; Little Debbie moves down by two spots & Nature Valley falls out of the Top 10

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

58 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research Snacking Trends

70%

60%

50%

40%

30%

20%

10%

0%

We asked teens if they plan to eat more, less or the same of their favorite snack brand over the next 6 months; the above chart shows the net of teens’ intentions (the ones who plan to eat more or the same amount for each brand, minus those eating less) • Goldfish and Cheez-It had the strongest results, with over 60% net who plan to eat more or the same amount • Little Debbie has the largest percent of people who say they plan to eat less of a Top 10 brand • For all of the brands in the Top 10, the net results (% who said “more” minus % who said “less”, excluding “the same”) is negative, likely because consumers tend to say they will plan to eat less of something that they believe is unhealthy

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 59 Plant Based Meat Trends

Do you What plant 8% consume plant based meat based meat? brands have 22% 37% 18% you tried?

18% of teens Of those who answered consume plant Yes, Impossible Foods based meat, while 82% (37%) had been tried 82% do not most by teens, followed 33% by Beyond Meat (33%), Impossible Burger Beyond Meat Morningstar Farms (22%), and Other (8%) Morningstar Farms Other/unsure No Yes

Preferences for those Willingness to try plant based meat is higher for teens who have not yet tried • Of the 82% who have not yet tried plant based meat, plant based meat: 35% are open to trying it • In our February 2020 survey of 3,500 US adults • Of the 82% who have not 35% yet tried it, 65% are not across all ages, only 20% of those who had not tried open to trying it and prefer plant based meat were open to trying it real meat, while 35% are 65% • This suggests a greater openness to plant based meat open to trying it from younger consumers, likely helping drive sustainable • Of those who are open to growth tailwinds for the category trying it, 90% said they haven’t had a chance to try it yet, while 10% said it is too expensive Not interested Open

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

60 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research Appendices Executive Summary • • • • • • • • • • • • • • • Contents Meet TeenTimeVideoDailyConsumer Series Historic TimePlatform MediaSocial Series (AI Brands TeensFavorite FootwearAthletic (UI TeensBrands Favorite FootwearAthletic (AI Brands FavoriteTeens Clothing Athletic (UI TeensBrands Favorite Clothing Athletic (All BrandsTeens FootwearFavorite Favorite MakingIn Most AMatter Factors Purchase What Clothing TeenPreference Channel Shopping TeenBy Breakdown Spending Teen Is What & Key Framework Project Spending Breakdown ByIncome BreakdownSpending Our Senior Our AnalystTeam In A Clothing Brands (All Teens Brands Clothing Teen’sWallet Today Teen Behavior Teen Behavior & Habits Demographics PiperSandler InvestmentResearch Gender ? ) ) Demographic ) ) ) ) Teen Brand Teen Brand Preferences Taking Stock WithTeensSurvey-Fall2020 Results Demographics Demographics & Appendices |61 Project Framework & Key Demographics

ALL TEENS Fall 2020 Spring 2020 Fall 2019 Spring 2019 Fall 2018 Spring 2018 Fall 2017 Spring 2017 Teens Surveyed 9,800 5,200 9,500 8,000 8,600 6,000 6,100 5,500 Gender - Female 48% 49% 45% 46% 44% 45% 46% 45% Gender - Male 51% 50% 54% 54% 56% 55% 54% 55% Average Age 15.8 16.2 15.8 16.3 15.9 16.4 15.9 16.4 Percentage Of Teens Part-Time Employed 33% 37% 35% 38% 36% 40% 35% 39% Average Household Income $67,500 $65,600 $65,400 $67,700 $68,300 $66,296 $66,100 $66,100

UPPER-INCOME TEEN SURVEY Fall 2020 Spring 2020 Fall 2019 Spring 2019 Fall 2018 Spring 2018 Fall 2017 Spring 2017 Teens Surveyed - Upper Income 2,300 1,300 2,100 2,000 2,400 1,400 1,500 1,400 Gender - Female 47% 47% 43% 44% 42% 43% 43% 42% Gender - Male 52% 52% 56% 56% 58% 57% 57% 58% Average Age 15.9 16.2 15.8 16.2 16.0 16.4 15.9 16.4 Percentage Of Teens Part-Time Employed 34% 39% 36% 40% 38% 44% 38% 39% Average Household Income $105,800 $103,800 $102,700 $105,900 $101,900 $100,480 $101,000 $100,000

AVERAGE-INCOME TEEN SURVEY Fall 2020 Spring 2020 Fall 2019 Spring 2019 Fall 2018 Spring 2018 Fall 2017 Spring 2017 Teens Surveyed - Average Income 7,500 3,900 7,400 6,100 6,200 4,600 4,600 4,100 Gender - Female 48% 49% 45% 47% 45% 45% 47% 46% Gender - Male 51% 49% 53% 53% 55% 55% 53% 54% Average Age 15.7 16.2 15.8 16.3 15.9 16.4 15.9 16.4 Percentage Of Teens Part-Time Employed 33% 36% 35% 38% 35% 39% 35% 39% Average Household Income $55,400 $53,200 $54,500 $55,000 $55,800 $56,055 $55,000 $55,000

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

62 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research Teen Spending Breakdown By Income Demographic

SPENDING BY CATEGORY (UPPER-INCOME, ALL TEENS)

Spending by Category - All Teens Fall 2020 Spring 2020 Fall 2019 Spring 2019 Fall 2018 Spring 2018 Fall 2017 Spring 2017 Video Games / Systems 10% 8% 9% 8% 8% 8% 7% 8% Music 2% 2% 3% 3% 3% 3% 3% 3% Movies 2% 1% 1% 2% 2% 2% 2% 2% Electronics / Gadgets 7% 7% 7% 7% 7% 7% 8% 7% Clothing 21% 21% 21% 20% 21% 20% 20% 19% Fashion Accessories 4% 3% 3% 3% 3% 4% 3% 3% Personal Care 7% 6% 6% 6% 6% 6% 6% 6% Shoes 8% 7% 9% 8% 8% 8% 8% 8% Food 21% 25% 23% 23% 24% 24% 22% 24% Concerts / Movies / Sporting Events 3% 4% 5% 5% 5% 4% 5% 6% Car 7% 8% 6% 8% 7% 9% 9% 9% Books / Magazines 2% 1% 1% 1% 1% 1% 1% 1% Furniture / Room Accessories 3% 2% 2% 2% 2% 2% 2% 2% Other 3% 3% 4% 3% 3% 3% 4% 4% How I Live (aka Teenager Basic Needs) 21% 20% 20% 21% 20% 21% 22% 21% How I Look (aka the Selfie Budget) 40% 38% 39% 37% 38% 38% 38% 36% How We Have Fun (aka the Social Budget) 39% 43% 42% 42% 42% 42% 41% 43%

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 63 Teen Spending Breakdown By Income Demographic

SPENDING BY CATEGORY (AVERAGE-INCOME, ALL TEENS)

Spending by Category - All Teens Fall 2020 Spring 2020 Fall 2019 Spring 2019 Fall 2018 Spring 2018 Fall 2017 Spring 2017 Video games / systems 11% 9% 9% 9% 9% 9% 8% 8% Music 2% 3% 3% 3% 3% 3% 3% 3% Movies 2% 2% 2% 2% 2% 2% 2% 2% Electronics / gadgets 8% 7% 8% 7% 8% 7% 7% 7% Clothing 20% 19% 20% 19% 20% 19% 20% 19% Fashion Accessories 4% 4% 4% 4% 4% 3% 4% 3% Personal Care 7% 7% 7% 7% 7% 7% 7% 7% Shoes 9% 9% 10% 9% 10% 9% 10% 9% Food 19% 21% 19% 20% 20% 21% 20% 22% Concerts/Movies/Sporting events 3% 4% 4% 4% 5% 4% 5% 4% Car 8% 8% 8% 8% 8% 10% 8% 9% Books/magazines 1% 1% 1% 2% 1% 1% 1% 2% Furniture / room accessories 3% 3% 3% 2% 2% 2% 2% 2% Other 4% 3% 3% 3% 3% 3% 4% 4% How I Live (aka Teenager Basic Needs) 23% 22% 21% 21% 21% 22% 22% 21% How I Look (aka the Selfie Budget) 40% 40% 40% 39% 40% 39% 40% 39% How We Have Fun (aka the Social Budget) 38% 39% 38% 40% 39% 40% 39% 41%

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

64 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research Teen Spending Breakdown By Gender

SPENDING BY CATEGORY (UPPER-INCOME MALES)

Spending by Category - Male Fall 2020 Spring 2020 Fall 2019 Spring 2019 Fall 2018 Spring 2018 Fall 2017 Spring 2017 Video Games / Systems 17% 14% 13% 14% 14% 13% 11% 12% Music / Movies (DVD/CD) 3% 4% 4% 5% 4% 5% 5% 5% Electronics / gadgets 9% 9% 9% 9% 9% 8% 9% 9% Clothing 16% 16% 17% 16% 17% 16% 17% 16% Accessories / personal care / cosmetics 5% 4% 5% 4% 5% 5% 5% 4% Shoes 9% 8% 10% 9% 9% 9% 9% 8% Food 21% 25% 23% 23% 24% 24% 22% 24% Concerts/Movies/Sporting Events 3% 4% 5% 5% 5% 4% 5% 5% Car 8% 9% 8% 9% 8% 11% 10% 10% Books / magazines 2% 1% 1% 1% 1% 1% 1% 1% Furniture / room accessories 3% 2% 2% 2% 2% 1% 2% 1% Other 5% 4% 5% 5% 4% 4% 4% 5% Total Fashion (Clothing, Access & Footwear) 29% 28% 31% 29% 31% 30% 31% 28%

SPENDING BY CATEGORY (UPPER-INCOME FEMALES)

Spending by Category - Female Fall 2020 Spring 2020 Fall 2019 Spring 2019 Fall 2018 Spring 2018 Fall 2017 Spring 2017 Video Games / Systems 2% 1% 2% 1% 1% 1% 1% 1% Music / Movies (DVD/CD) 4% 3% 4% 4% 5% 5% 5% 5% Electronics / gadgets 6% 5% 6% 5% 6% 5% 5% 5% Clothing 27% 26% 27% 25% 26% 25% 24% 25% Accessories / personal care / cosmetics 17% 16% 15% 16% 16% 17% 16% 16% Shoes 7% 6% 8% 7% 7% 7% 7% 7% Food 21% 25% 23% 24% 23% 25% 22% 23% Concerts/Movies/Sporting Events 3% 5% 6% 5% 5% 5% 6% 6% Car 5% 7% 4% 7% 6% 7% 7% 7% Books / magazines 2% 1% 2% 2% 2% 1% 2% 2% Furniture / room accessories 4% 2% 3% 2% 2% 2% 2% 2% Other 2% 2% 2% 2% 2% 2% 3% 2% Total Fashion (Clothing, Access & Footwear) 51% 48% 49% 48% 48% 49% 47% 48%

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 65 Teen Shopping Channel Preference Upper-Income Teens

ALL TEENS Fall 2020 Spring 2020 Fall 2019 Spring 2019 Fall 2018 Spring 2018 Fall 2017 Spring 2017 Specialty 21% 23% 23% 24% 24% 25% 23% 24% Major Chain / Dept Store 12% 14% 13% 13% 15% 13% 15% 16% Off-Price 10% 12% 11% 11% 11% 11% 12% 11% Discount 13% 13% 12% 12% 12% 13% 13% 12% Outlet 14% 14% 16% 14% 15% 14% 15% 14% Catalogs 1% 1% 2% 2% 5% 7% 6% 6% Online Only eTailers 22% 22% 23% 24% 18% 19% 17% 17% Secondhand 8% ------

ALL FEMALES Fall 2020 Spring 2020 Fall 2019 Spring 2019 Fall 2018 Spring 2018 Fall 2017 Spring 2017 Specialty 24% 28% 31% 32% 30% 30% 29% 31% Major Chain / Dept Store 10% 12% 11% 12% 13% 12% 13% 14% Off-Price 11% 14% 13% 13% 14% 14% 15% 13% Discount 15% 16% 14% 14% 14% 16% 15% 15% Outlet 11% 12% 15% 12% 12% 11% 12% 12% Mail order 1% 1% 1% 1% 5% 6% 5% 6% Online Only eTailers 16% 16% 15% 16% 12% 12% 10% 11% Secondhand 11% ------

ALL MALES Fall 2020 Spring 2020 Fall 2019 Spring 2019 Fall 2018 Spring 2018 Fall 2017 Spring 2017 Specialty 17% 19% 17% 18% 20% 21% 18% 20% Major Chain / Dept Store 14% 15% 14% 14% 16% 14% 16% 18% Off-Price 8% 9% 10% 9% 9% 8% 10% 9% Discount 10% 12% 11% 11% 10% 10% 11% 10% Outlet 17% 16% 17% 16% 17% 16% 17% 16% Mail order 1% 1% 2% 2% 6% 7% 6% 6% Online Only eTailers 27% 28% 29% 30% 23% 24% 22% 22% Secondhand 5% ------

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

66 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research What Factors Matter Most In Making A Clothing Purchase All Teens

1 Quality 1.9

2 Price 2.2

3 Brand 3.4

4 Trend 3.5

5 Sustainability 4.1

• In Fall 2019, we asked teens to rank what matters most to them when making a clothing purchase • Quality received the highest average score at 1.9 (teens had to rank between 1 – 5; 1 being the most important) • Among upper-income males, quality ranked higher than the overall survey average • Among upper-income females, sustainability ranked an average score of 3.9—a tie with brand

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 67 Favorite Clothing Brands (All Teens)

SPRING 2019 FALL 2019 SPRING 2020 FALL 2020 1 Nike 33% 1 Nike 34% 1 Nike 37% 1 Nike 40% 2 Adidas 9% 2 Adidas 10% 2 Adidas 9% 2 Adidas 8% 3 American Eagle 5% 3 American Eagle 5% 3 American Eagle 4% 3 American Eagle 4% 4 Hollister 3% 4 Hollister 4% 4 Ralph Lauren 3% 4 Hollister 3% 5 Ralph Lauren 3% 5 Vans 3% 5 Hollister 3% 5 Vans 3% 6 Vans 3% 6 Ralph Lauren 3% 6 Vans 3% 6 H&M 3% 7 Gucci 3% 7 Champion 3% 7 Champion 3% 7 Pacsun 2% 8 H&M 2% 8 Under Armour 3% 8 H&M 2% 8 Under Armour 2% 9 PacSun 2% 9 PacSun 2% 9 PacSun 2% 9 Champion 2% 10 Supreme 2% 10 Gucci 2% 10 Under Armour 2% 10 Ralph Lauren 2%

SPRING 2019 FALL 2019 SPRING 2020 FALL 2020 1 American Eagle 13% 1 American Eagle 15% 1 American Eagle 15% 1 Nike 14% 2 Nike 10% 2 Nike 11% 2 Nike 13% 2 American Eagle 12% 3 Forever 21 9% 3 Forever 21 7% 3 Forever 21 6% 3 Pacsun 7% 4 Urban Outfitters 5% 4 PacSun 5% 4 lululemon 5% 4 lululemon 6% 5 Victoria's Secret 5% 5 Hollister 5% 5 Hollister 5% 5 Urban Outfitters 5% 6 PacSun 4% 6 lululemon 5% 6 PacSun 4% 6 Hollister 4% 7 lululemon 4% 7 Victoria's Secret 3% 7 Urban Outfitters 4% 7 Forever 21 3% 8 Hollister 4% 8 H&M 3% 8 Brandy Melville 3% 8 SHEIN 3% 9 H&M 2% 9 Urban Outfitters 3% 9 Victoria's Secret 3% 9 H&M 3% 10 rue 21 2% 10 rue 21 2% 10 H&M 3% 10 Brandy Melville 2%

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

68 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research Favorite Footwear Brands (All Teens)

SPRING 2019 FALL 2019 SPRING 2020 FALL 2020 1 Nike 51% 1 Nike 50% 1 Nike 54% 1 Nike 56% 2 Adidas 17% 2 Adidas 19% 2 Adidas 15% 2 Adidas 16% 3 Vans 13% 3 Vans 12% 3 Vans 13% 3 Vans 11% 4 Foot Locker 3% 4 Foot Locker 3% 4 Foot Locker 3% 4 Foot Locker 3% 5 Converse 2% 5 New Balance 1% 5 Converse 2% 5 Converse 1% 6 New Balance 2% 6 Under Armour 1% 6 New Balance 2% 6 New Balance 1% 7 Under Armour 1% 7 Converse 1% 7 Under Armour 1% 7 Under Armour 1% 8 Sperry Top-Sider 1% 8 Champs Sports 1% Finish Line 1% 8 StockX 0% 9 Finish Line 1% 9 Crocs 1% 9 Sperry Top-Sider 1% 9 Ariat 0% 10 Champs Sports 1% 10 Finish Line 1% 10 Asics 1% 10 Puma 0%

SPRING 2019 FALL 2019 SPRING 2020 FALL 2020 1 Nike 30% 1 Nike 33% 1 Nike 39% 1 Nike 48% 2 Vans 28% 2 Vans 30% 2 Vans 28% 2 Vans 21% 3 Adidas 9% 3 Adidas 7% 3 Adidas 6% 3 Converse 6% 4 Converse 8% 4 Converse 6% 4 Converse 6% 4 Adidas 5% 5 Steve Madden 2% 5 Birkenstock 4% 5 Foot Locker 2% 5 Birkenstock 2% 6 Foot Locker 2% 6 Foot Locker 2% 6 Birkenstock 1% 6 Foot Locker 2% 7 Birkenstock 2% 7 Steve Madden 2% 7 Steve Madden 1% 7 Dr. Martens 2% 8 DSW 2% 8 Crocs 1% 8 Dr. Martens 1% 8 Steve Madden 1% 9 Journeys 1% 9 DSW 1% DSW 1% 9 Crocs 1% 10 Payless ShoeSource 1% 10 Journeys 1% 10 Journeys 1% 10 DSW 1%

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 69 Favorite Athletic Clothing Brands (UI Teens)

SPRING 2019 FALL 2019 SPRING 2020 FALL 2020 1 Nike 57% 1 Nike 59% 1 Nike 55% 1 Nike 60% 2 lululemon 15% 2 lululemon 13% 2 lululemon 19% 2 lululemon 16% 3 Adidas 11% 3 Adidas 12% 3 Adidas 12% 3 Adidas 10% 4 Under Armour 6% 4 Under Armour 6% 4 Under Armour 4% 4 Under Armour 4% 5 Athleta 1% 5 Champion 1% 5 The North Face 2% 5 Athleta 1%

SPRING 2019 FALL 2019 SPRING 2020 FALL 2020 1 Nike 62% 1 Nike 66% 1 Nike 64% 1 Nike 69% 2 Adidas 14% 2 Adidas 14% 2 Adidas 15% 2 Adidas 14% 3 Under Armour 9% 3 Under Armour 8% 3 Under Armour 6% 3 Under Armour 6% 4 lululemon 4% 4 lululemon 3% 4 lululemon 5% 4 lululemon 4% 5 Patagonia 1% 5 The North Face 1% 5 The North Face 2% 5 GymShark 1%

SPRING 2019 FALL 2019 SPRING 2020 FALL 2020 1 Nike 50% 1 Nike 51% 1 Nike 45% 1 Nike 51% 2 lululemon 29% 2 lululemon 28% 2 lululemon 34% 2 lululemon 29% 3 Adidas 8% 3 Adidas 10% 3 Adidas 8% 3 Adidas 5% 4 Athleta 2% 4 Under Armour 3% 4 Under Armour 2% 4 Athleta 2% Under Armour 2% 5 Athleta 2% 5 Fabletics 2% 5 Under Armour 2%

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

70 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research Favorite Athletic Clothing Brands (AI Teens)

SPRING 2019 FALL 2019 SPRING 2020 FALL 2020 1 Nike 63% 1 Nike 63% 1 Nike 66% 1 Nike 66% 2 Adidas 13% 2 Adidas 14% 2 Adidas 12% 2 Adidas 11% 3 Under Armour 7% 3 Under Armour 7% 3 lululemon 6% 3 lululemon 7% 4 lululemon 5% 4 lululemon 5% 4 Under Armour 6% 4 Under Armour 6% 5 The North Face 1% 5 The North Face 1% 5 The North Face 1% 5 The North Face 1%

SPRING 2019 FALL 2019 SPRING 2020 FALL 2020 1 Nike 64% 1 Nike 62% 1 Nike 66% 1 Nike 67% 2 Adidas 15% 2 Adidas 17% 2 Adidas 14% 2 Adidas 13% 3 Under Armour 9% 3 Under Armour 9% 3 Under Armour 8% 3 Under Armour 8% 4 lululemon 2% 4 lululemon 1% 4 lululemon 2% 4 lululemon 2% 5 The North Face 1% 5 The North Face 1% 5 The North Face 1% 5 The North Face 1%

SPRING 2019 FALL 2019 SPRING 2020 FALL 2020 1 Nike 62% 1 Nike 64% 1 Nike 65% 1 Nike 65% 2 Adidas 12% 2 Adidas 11% 2 lululemon 11% 2 lululemon 13% 3 lululemon 10% 3 lululemon 10% 3 Adidas 9% 3 Adidas 8% 4 Under Armour 5% 4 Under Armour 5% 4 Under Armour 4% 4 Under Armour 4% 5 Fabletics 1% 5 Fabletics 1% 5 GymShark 1% 5 Fabletics 1%

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 71 Favorite Athletic Footwear Brands (UI Teens)

SPRING 2019 FALL 2019 SPRING 2020 FALL 2020 1 Nike 70% 1 Nike 70% 1 Nike 72% 1 Nike 74% 2 Adidas 18% 2 Adidas 19% 2 Adidas 17% 2 Adidas 16% 3 New Balance 3% 3 New Balance 2% 3 New Balance 2% 3 New Balance 2% 4 Under Armour 2% 4 Under Armour 1% 4 Under Armour 2% 4 Under Armour 1% 5 Asics 1% 5 Brooks 1% 5 Brooks 1% 5 Brooks 1%

SPRING 2019 FALL 2019 SPRING 2020 FALL 2020 1 Nike 66% 1 Nike 66% 1 Nike 66% 1 Nike 67% 2 Adidas 21% 2 Adidas 22% 2 Adidas 22% 2 Adidas 21% 3 New Balance 4% 3 Under Armour 2% 3 New Balance 3% 3 New Balance 3% 4 Under Armour 2% 4 New Balance 2% 4 Under Armour 2% 4 Under Armour 2% 5 ASICS 1% 5 Brooks 1% 5 Brooks 1% 5 Vans 1%

SPRING 2019 FALL 2019 SPRING 2020 FALL 2020 1 Nike 74% 1 Nike 74% 1 Nike 78% 1 Nike 81% 2 Adidas 15% 2 Adidas 16% 2 Adidas 13% 2 Adidas 9% 3 New Balance 3% 3 New Balance 2% 3 New Balance 2% 3 New Balance 2% 4 ASICS 1% 4 lululemon 1% 4 Under Armour 1% 4 Brooks 1% 5 Under Armour 1% 5 Brooks 1% lululemon 1% 5 Asics 1% Chaco 1% Asics 1% Under Armour 1%

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

72 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research Favorite Athletic Footwear Brands (AI Teens)

SPRING 2019 FALL 2019 SPRING 2020 FALL 2020 1 Nike 71% 1 Nike 71% 1 Nike 75% 1 Nike 74% 2 Adidas 17% 2 Adidas 17% 2 Adidas 14% 2 Adidas 14% 3 Under Armour 2% 3 Under Armour 2% 3 New Balance 2% 3 Under Armour 2% 4 New Balance 2% 4 New Balance 1% 4 Under Armour 1% 4 New Balance 1% 5 ASICS 1% 5 Brooks 1% 5 Asics 1% 5 Brooks 1%

SPRING 2019 FALL 2019 SPRING 2020 FALL 2020 1 Nike 69% 1 Nike 67% 1 Nike 72% 1 Nike 70% 2 Adidas 18% 2 Adidas 20% 2 Adidas 16% 2 Adidas 18% 3 Under Armour 3% 3 Under Armour 3% 3 New Balance 2% 3 Under Armour 2% 4 New Balance 2% 4 New Balance 2% 4 Under Armour 2% 4 New Balance 2% 5 Puma 1% 5 Brooks 1% 5 Asics 1% 5 Brooks 1%

SPRING 2019 FALL 2019 SPRING 2020 FALL 2020 1 Nike 74% 1 Nike 76% 1 Nike 77% 1 Nike 79% 2 Adidas 15% 2 Adidas 13% 2 Adidas 12% 2 Adidas 10% 3 New Balance 1% 3 Under Armour 1% 3 Under Armour 1% 3 Under Armour 1% 4 Under Armour 1% 4 New Balance 1% 4 New Balance 1% 4 Brooks 1% 5 Brooks 1% 5 Brooks 1% Brooks 1% New Balance 1%

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 73 Social Media Platform Historical Time Series

• Picture-based apps continue to outperform on usage; Facebook continues to moderate in engagement • Snapchat continued as the favorite but TikTok jumped up to the second spot as Instagram moved to No. 3 • In terms of highest engagement or usage, however, Instagram remained in the top-spot; TikTok (having first been listed in our survey in Spring 2020) moved up from 62% to 69% of teen usage • Pinterest usage also accelerated in Fall 2020 which we believe is a direct result of teens seeking out the DIY trend during COVID-19 • The average teen in our survey spends ~12 hours per week on social media

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

74 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research Teen Daily Video Consumption Time Series

Teen Daily Video Consumption

1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20

39% 38% 37% 38% 37% 35% 37% 33% 34% 33% 32% 31% 32% 29% 30% 26% 23% 22% 20% 16% 14% 12% 11% 9% 7% 6%

Netflix Cable TV YouTube Disney+

• On average, teens spend 34% of their daily video consumption on Netflix, up from 33% in our Spring 2020 survey. Netflix remained the top platform, ahead of YouTube at 32% (up from 31% in Spring). • Disney+ and AppleTV+ slipped to 6% and 1% respectively.

Teen Daily Video Consumption

1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 8% 7% 7% 7% 7% 6% 6% 6% 6% 5% 5% 5% 5% 5% 4% 4% 3% 3% 3% 3% 3% 3% 3% 3%

2% 1%

Hulu Amazon Prime Other streaming Apple TV+

• Hulu dipped slightly to 7% from 8% for the spring while Amazon Prime was flat at 3%.

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 75 Meet Our Senior Research Analyst Team

Erinn Murphy Nicole Miller Regan Michael Lavery Global Lifestyle Brands Restaurants & Branded Food, Tobacco & Cannabis Hospitality

Yung Kim Harsh Kumar Tom Champion Entertainment Technology Semiconductors Internet

Executive Summary Teen Behavior & Habits Teen Brand Preferences Demographics & Appendices

76 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 77 October 2020

Important Research Disclosures *

Distribution of Ratings/IB Services Piper Sandler

IB Serv./Past 12 Mos. Rating Count Percent Count Percent BUY [OW] 542 61.04 186 34.32 HOLD [N] 331 37.27 62 18.73 SELL [UW] 15 1.69 1 6.67

Analyst Certification — Erinn E. Murphy, Sr Research Analyst — Nicole Miller Regan, Sr Research Analyst — Yung Kim, Sr. Research Analyst — Michael S. Lavery, Sr. Research Analyst — Thomas Champion, Sr. Research Analyst — Harsh V. Kumar, Sr. Research Analyst The analysts Erinn E. Murphy, Nicole Miller Regan, Yung Kim, Michael S. Lavery, Thomas Champion and Harsh V. Kumar, primarily responsible for the preparation of this research report, attest to the following:

The views expressed in this report accurately reflect our personal views about the subject company and the subject security. In addition, no part of our compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this report.

Piper Sandler research analysts receive compensation that is based, in part, on overall firm revenues, which include investment banking revenues.

Time of dissemination: 6 October 2020 00:01EDT.

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78 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research October 2020

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Piper Sandler Investment Research Taking Stock With Teens Survey - Fall 2020 Results | 79 October 2020

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80 | Taking Stock With Teens Survey - Fall 2020 Results Piper Sandler Investment Research October 2020

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