PJC Piper Jaffray Companies

MINNEAPOLIS, April 7 /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 11th bi-annual proprietary research survey on teen spending habits and retail brand perceptions, titled "Taking Stock With Teens." Klinefelter and team conducted mall research field trips with approximately 700 teens from 12 high schools in nine states across the country and Canada. Additionally, the team surveyed another 1,235 students across the country through a partnership with the national DECA organization in an online survey. Overall, the survey shows that total fashion spending by students is up eight percent year-over-year driven by a 16 percent increase for young women, versus flat spending for young men. Teenage consumers continue to spend a significant amount of money on fashion as it represents 43 percent of the total teen budget, versus 39 percent during the fall 2005 survey. 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, took the top spot as the most frequent overall destination for the third consecutive survey capturing 16 percent of mind share votes, followed by American Eagle Outfitters with 10 percent mind share. In third place is West Coast brands, which includes Pacific Sunwear of California, Quiksilver, Volcom, Billabong, DC Shoes, Hurley, Roxy and Element, with nine percent of mind share votes. In fourth place is Abercrombie & Fitch with nine percent of mind share votes, followed by Forever 21 in fifth place with four percent of votes and Nordstrom in sixth place also garnering four percent of the votes. The students were also surveyed on video games. In total, 81 percent of teens own at least one video game platform and 59 percent answered that they are occasional game players, playing at least monthly. Almost 80 percent of teens indicated that they intend to spend less time playing video games in calendar 2006 and nearly 70 percent indicated that their interest in playing video games is decreasing. Students were also asked about their buying habits of MP3 players and online music. Of those students who own an MP3 player, 77 percent indicated that they also own some form of iPod, which is up from 74 percent in fall 2005. For online music services, 71 percent of students indicated that they use iTunes, up from 64 percent in fall 2005. Parents were also surveyed in a separate study. Parent spending on apparel for themselves and their teen was flat with fall 2005, but up 33 percent year- over-year, versus the spring 2005 survey. Parents are shopping more frequently and spending more time in major chains, versus traditional department stores. In addition, changes in home furnishings were notable. Pottery Barn was No. 1 when parents chose to purchase for themselves. Parents also responded to their buying habits of flat-panel TVs and home theater systems. Ownership of flat-panel TVs increased to 43 percent of survey participants, up from 31 percent from the fall 2005 survey. Additionally, the intent to purchase a flat-panel TV within the next six months increased to 15 percent from 11 percent, while the number of participants not expecting to purchase a flat-panel TV ever decreased to 15 percent from 27 percent six months ago. 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. With headquarters in Minneapolis, Piper Jaffray has approximately 2,900 employees in 107 offices in 23 states across the country and in London. For more information about Piper Jaffray, visit us online at http://www.piperjaffray.com/ . Disclaimers The material regarding the subject company is based on data obtained from sources deemed to be reliable; it is not guaranteed as to accuracy and does not purport to be complete. This report is solely for informational purposes and is not intended to be used as the primary basis of investment decisions. Because of individual client requirements, it is not, and it should not be construed as, advice designed to meet the particular investment needs of any investor. This report is not an offer or the solicitation of an offer to sell or buy any security. Unless otherwise noted, the price of a security mentioned in this report is the market closing price as of the end of the prior business day. Piper Jaffray does not maintain a predetermined schedule for publication of research and will not necessarily update this report. Piper Jaffray policy generally prohibits research analysts from sending draft research reports to subject companies; however, it should be presumed that the analyst(s) who authored this report has had discussions with the subject company to ensure factual accuracy prior to publication, and has had assistance from the company in conducting diligence, including visits to company sites and meetings with company management and other representatives. 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