Teens say they are spending about the same amount of their money on clothes and accessories this fall as they did last year, but their parents are cutting back on what they buy for them, a survey said on Wednesday.
The result is that total fashion spending for young women is expected to be down 13 percent, compared with a year ago, while spending for young men is expected to be down 14 percent, according to the survey by Piper Jaffray & Co. Fashion includes apparel, footwear and accessories.
The survey validates Piper Jaffray's thesis that a maturing fashion cycle is negatively impacting both traffic and conversion for many retailers, Piper Jaffray analysts said in the 14th semiannual teen spending report.
Slightly more than half of the teens surveyed said they were spending about the same amount on apparel, footwear and accessories this season, the survey said.
But their parents will be spending less on their children's apparel, shoes and accessories, the survey said. Parents said annual spending on teens is down 19 percent from last year.
But mom and dad are spending even less on themselves, with a 26 percent decline, the survey said.
Many apparel retailers, such as Children's Place Retail Stores Inc and AnnTaylor Stores Corp have been hit with weak sales as high gas prices and the widening housing downturn have kept many shoppers at home.
Until now teen retailers such as American Eagle Outfitters Inc and Abercrombie & Fitch Co had largely been able to sidestep the trouble, since their younger customers do not feel the pinch as much as their parents.
But last week, Wet Seal Inc slashed its outlook for third quarter earnings and said it expected sales at stores open at least a year to fall 7.5 percent to 8.5 percent in September, citing weakness in store transactions and more markdowns than expected.