PJC Piper Jaffray Companies

Piper Jaffray Completes Ninth Bi-Annual 'Taking Stock With Teens' National Study of Generation Y Shopping Behavior and Brand Preferences MINNEAPOLIS, April 8 /PRNewswire-FirstCall/ -- Piper Jaffray & Co. Senior Retail Analyst Jeff Klinefelter and a collaborative team of other senior research analysts recently released the results of the ninth bi-annual proprietary research survey on teen spending habits and retail brand perception, titled "Taking Stock With Teens." Klinefelter and team conducted mall research field trips with approximately 600 teens from 11 high schools in eight states across the country and one province of Canada. Additionally, the team surveyed another 1,400 students in 47 states and Canada through an online survey. Overall, the survey shows that total fashion spending remained flat year-over-year. "Our 'discretionary spending recovery' thesis remains intact as our new supplemental online survey points to significantly higher spending on fashion products for an average household income of $72,000 sample, versus $44,000 sample," said Klinefelter. "Additionally, current spending trends on fashion-related products remains on par with strong performance during Spring 2004, however frequency characteristics point to acceleration as we move through 2005." Brand Preferences Survey Results: Klinefelter and team surveyed teens on their favorite places to shop as well as their spending habits. Based on their responses, Hollister, a concept of Abercrombie & Fitch (ANF, Outperform, $58.79) took the top spot as the most frequent overall destination capturing 12 percent of mind share votes, followed by Abercrombie & Fitch with 10 percent mind share after leading the ranking for seven surveys in a row. In third place is Pacific Sunwear of California (PSUN, Outperform, $26.74), followed by American Eagle (AEOS, Outperform, $29.77) in fourth place and d.e.m.o, a concept of Pacific Sunwear, in fifth. "Overall, mind share in terms of preferred brands seems to be coalescing at the top, continuing a trends we first saw in the fall 2004 survey," said Klinefelter. "This spring, the top three choices garnered 32 percent of the votes, compared to 33 percent in the fall 2004 survey and 25 percent last spring." The students were also surveyed on video game products and other consumer electronics. Results of the survey point out that video games remain a leading form of entertainment with 76 percent of student households having at least one video game platform and 49 percent of students stating that they are occasional game players (playing at least monthly). In addition, 51 percent of student households own Sony's PS2, 32 percent own Microsoft's Xbox, 18 percent own Nintendo's GameCube and 34 percent own a GameBoy System (38 percent own two consoles). In addition to video game products, the students were surveyed about portable digital audio players. The survey results show an accelerating interest among teens for digital audio players. Of the students surveyed, 41 percent indicated that they own a portable digital audio player and those expecting to purchase one went from 46 percent in fall 2004 to 59 percent in the spring 2005 survey. Apple's (AAPL, Outperform, $43.56) iPod ownership among high school students has risen materially. In the fall 2004 survey, 40 percent owned an iPod, while in this spring's survey, 56 percent own an iPod. Gen Y - Teen and Parent Spending Remains Steady Total spending on fashion products (apparel, shoes and accessories) for teens by parents appears to be holding steady when compared with fall 2004 and ticking up slightly when looking at parents spending on apparel themselves. Parents indicated in the survey that annual spending on teen apparel came in at $1,131, versus $1,133 in fall 2004. When spending on themselves, parent spending ticked up seven percent to $1,398 from $1,309 in fall 2004. Overall, 41 percent of parents surveyed indicated that they had spent more on apparel for their teens this year, versus last year and only 11 percent said that they had spent less on apparel for their teens this year, versus last year. Also 23 percent of the parents surveyed said that they had spent more on themselves this year than last year and only 20 percent spent less on themselves this year. Piper Jaffray & Co. is the chief operating subsidiary of Piper Jaffray Companies (NYSE:PJC), a focused securities firm dedicated to delivering superior financial advice, investment products and transaction execution within selected sectors of the financial services marketplace. The company operates through two primary revenue-generating segments: Capital Markets and Private Client Services. Piper Jaffray & Co. has served corporations, government and non-profit entities, institutional investors and the financial advisory needs of private individuals since 1895. Headquartered in Minneapolis, Piper Jaffray has approximately 3,000 employees in 104 offices in 23 states across the country and in London. For more information about Piper Jaffray, visit us online at http://www.piperjaffray.com/. Since 1895. Member SIPC and NYSE. (C) 2005 Piper Jaffray & Co., 800 Nicollet Mall, Suite 800, Minneapolis, Minnesota 55402-7020 Research Disclosures Piper Jaffray was making a market in the securities of American Eagle Outfitters, Inc. at the time this research report was published. Piper Jaffray will buy and sell American Eagle Outfitters, Inc. securities on a principal basis. Piper Jaffray was making a market in the securities of Abercrombie & Fitch Co. at the time this research report was published. Piper Jaffray will buy and sell Abercrombie & Fitch Co. securities on a principal basis. Piper Jaffray was making a market in the securities of Pacific Sunwear of California, Inc. at the time this research report was published. Piper Jaffray will buy and sell Pacific Sunwear of California, Inc. securities on a principal basis. Piper Jaffray has received compensation for non-investment banking securities-related services from Pacific Sunwear of California, Inc. within the past 12 months. 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