2018 Top Brands

3 September 2018 | 9:16PM EDT
Millennial Insights
Goldman Sachs x Conde Nast: The 2018 Top Brands & Retailers Love List
The 2018 Love List: Our annual partnership with Conde ‘Appy shoppers: Shopping platforms are losing out to Alexandra Walvis, CFA
+1(212)357-6283 |
Nast delves into the changing shopping behaviors and social media, with consumers across cohorts increasingly alexandra.walvis@gs.com
Goldman Sachs & Co. LLC
unique brand preferences of Millennial consumers. As this designating apps like Instagram their favorites.
For the exclusive use of CLAIRE.LU@GS.COM
Matthew J. Fassler
cohort rapidly approaches peak spending age, their choices +1(212)902-6740 | matt.fassler@gs.com
Goldman Sachs & Co. LLC
Athletic Ascendant: Large athletic brands are becoming
increasingly shape the brand and retail landscape. In this
increasingly dominant, not only in the athletic category but Jason English
report, we analyze the results of a survey of fashion-forward +1(212)902-3293 |
jason.english@gs.com
also in broader designations like clothing, shoes, and bags, Goldman Sachs & Co. LLC
consumers, the Conde Nast It Girl, as well as a broader
where more formal brands have historically played a larger Heath P. Terry, CFA
national sample. This year we also parse out the preferences +1(212)357-1849 | heath.terry@gs.com
role. This trend features Nike in particular consolidating Goldman Sachs & Co. LLC
of Gen Z - these consumers have less financial firepower
share, though Adidas’ rise has also been impressive, and is Richard Edwards
but their command of the digital and social landscape grants +44(20)7051-6016 |
happening among men, women, and It girls, as the richard.edwards@gs.com
them disproportionate influence. Other new features in 2018 Goldman Sachs International
casualization of wardrobes continues.
include a deeper dive into beauty, a new luxury brands Louise Singlehurst
+44(20)7051-4068 |
category, and an analysis of the fashionable male consumer, Brands with momentum: The top 10 ranked brands & louise.singlehurst@gs.com
Goldman Sachs International
the “Conde Nast Man”. retailers for It Girls are Victoria’s Secret, Sephora, Nike,
Fulvio Cazzol
Ulta, Nordstrom, Kate Spade, Michael Kors, Adidas, Gucci +44(20)7552-3722 |
Don’t stop me now: The shift online persists as the single fulvio.cazzol@gs.com
and Coach. Smaller brands with building influence include Goldman Sachs International
biggest change among surveyed consumers, and we find
Fenty, Glossier and Tarte. Top 10 brands & retailers for our Brooke Roach
that Amazon is becoming an increasingly dominant retailer in +1(212)357-2421 |
national sample not appearing on the It Girl Love List brooke.roach@gs.com
almost every category. One caveat here is the observation Goldman Sachs & Co. LLC
include Walmart, Bath & Body Works, and Amazon.
that fashion forward consumers appear to be resisting this Rosalie Frazier
+1(212)357-2174 | rosalie.frazier@gs.com
change as they choose to spend a greater proportion of their Stock ideas: TPR (CL-Buy), JWN (CL-Buy), AMZN (CL-Buy), Goldman Sachs & Co. LLC
dollars in-store than mainstream spenders, and also grant ADSGn.DE (Buy), PRTP.PA (Buy), and EL (Buy).
less mindshare to Amazon.
Goldman Sachs 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 decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to www.gs.com/research/hedge.html.
Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.
Goldman Sachs Millennial Insights
Table of Contents
PM SUMMARY: Revisiting the preferences of young consumers 4
IT GIRL SHOPPING HABITS: What’s different this year? 12
ONLINE BEHAVIOR: Shift to online shopping is accelerating 14
SHARE SHIFTS: Preferences consolidating in shoes as athletic gains share 16
AMAZON: Gaining traction across categories and cohorts 18

A MORE CASUAL CONSUMER: Active fashion is now mainstream fashion 20
APPS: Amazon and multibrand platforms preferred; social media increasingly a favorite 21
CLOTHING BRANDS: Athletic brands gaining share in the fragmented clothing category 24
CLOTHING RETAILERS: Amazon adoption accelerating among mainstream consumers 25
HANDBAG BRANDS: Kate Spade and Michael Kors gain momentum 26
HANDBAG RETAILERS: It Girls prefer Nordstrom as a shopping destination 27
SHOE BRANDS: Nike still the clear favorite, but other athletic brands also post strong showing 28
SHOE RETAILERS: Nike and Amazon consolidate as top retailers 29
ATHLETIC BRANDS: Nike still dominant but other emergent brands gaining share 30
ATHLETIC RETAILERS: Nike still preferred, but losing share to Amazon 31
LINGERIE BRANDS: Aerie gaining traction, but Victoria’s Secret still the market leader 32
BEAUTY BRANDS: Multi-line specialty a favorite destination for branded product 33
LUXURY/PREMIUM BRANDS: Gucci rises above the rest 38
3 September 2018
LUXURY/PREMIUM RETAILERS: Nordstrom makes a strong showing among It Girls 39
A FOCUS ON MEN: Mass brands preferred, purchased through mass channels 40
THE FASHION FORWARD MAN: Less athletic focus and more likely to shop a variety of retailers 41
Appendix 43
Disclosure Appendix 44
3 September 2018
PM SUMMARY: Revisiting the preferences of young consumers
Millennial & Gen Z cohorts are gaining influence. Millennials, generally defined as the generation born between 1980 and
1995 (or today’s 23-38 year olds), have been an influential force on fashion for a number of years. As they age and control a
growing proportion of consumer spending dollars, they are driving profound shifts in consumer retail as they express their
unique shopping behavior and relationships to brands. The millennial shopper is now rapidly approaching peak earning and
spending years, flexing the muscle of their wallet as they shift dollars to the brands and retailers they love most. Gen Z
(today’s teenagers through 23 year olds), also exhibit distinct preferences from their older counterparts. Though they
generally have less financial firepower, they have a healthy influence of the digital and social landscape.
The Conde Nast - Goldman Sachs Love List. Our partnership with Conde Nast has been ongoing since 2013. In the past
two years, we have expanded the scope of our insights by conducting an open-ended survey, which asks respondents to
provide unaided answers about their fashion and shopping preferences. In our view, this methodology creates richer insights
into emerging brands and behaviors. As always, our survey polls two sets of consumers: 1) It Girls, a self-selected group of
women drawn from Conde Nast readership, which skews higher in fashion focus, identifies as an influencer, and tends to be
more affluent; and 2) A national sample. For the past two years, the survey has also included men. This year, we draw
additional insights by splitting our national dataset between Gen Z and Millennials, and for the first time pull out trends for
“The Conde Nast Man”.
Key themes emerging from this year’s analysis

n Online shifts still predominant, though less so for It Girls: By a large margin, the single most frequent answer to the
question “how has your shopping behavior changed in the last year” was shopping more online and less in store.
Clothing and shoes have the highest reported online penetration levels, and men continue to allocate a higher proportion
of dollars online than women. It Girls, despite spending less online than our national sample of women, were the only
cohort where the proportion of consumers reporting to spend >50% online declined across categories. That said, the
proportion of It Girls reporting spending >25% rose in all categories, suggesting this shift is happening, albeit at a slower
rate.
n Amazon increasingly preferred across all categories and cohorts: Amazon leads as a preferred retailer in mainstream
fashion, with the platform realizing increased affinity this year in almost all categories across our national sample. We
found this dominance surprising in several categories where top brands are not often official partners with Amazon, such
as handbags, briefcases, and luxury products. Men remain more likely to choose Amazon, but women now indicate
Amazon as their top destination for clothing, handbags, and premium/luxury brands, and as a close #2 in several other
categories.
3 September 2018
n Share shifts as preferences consolidate: Higher affinity for athletic brands as everyday wardrobe staples is driving
consolidation of the top three brands in footwear for both men and women in our national sample; this effect is even
more pronounced in men’s choices. We also saw a more concentrated affinity list among top handbag brands for both It
Girls and for mainstream women. Among retailers, affinity for Amazon has driven increased consolidation among top
destinations.
n Social media is dominating the app space: Both our national survey respondents and It Girls preferred Social Media
apps by a wide margin to any other app category. Instagram gained several points of share among It Girls and
mainstream women, although the increase was largely driven by Millennials, given Gen Z’s outsized preference for
Snapchat. Amazon topped the list of preferred shopping apps among all our cohorts, but preferences outside of Amazon
bifurcated across a number of shopping strategies: multi-line emerging retailers (Sephora/Ulta), mass retail
(Walmart/Target), resale platforms (Ebay/Poshmark), direct from manufacturer retail (Wish), and bargaining
(Groupon/Ibotta).
Breaking down brand momentum - favorite fashion brands and retailers by category and cohort
n Athletic: Nike remains the top athletic brand for all surveyed cohorts. Nike is also notably increasing affinity among It
Girls, for whom Nike’s lead versus other brands has been narrower than achieved elsewhere. It Girl affinity is also
increasing for Adidas, which jumped from the #4 rank to #2, outstripping the brand’s #3 rank among mainstream
women. These two brands and Under Armour continue to account for the lion’s share of responses across
demographics. Within athletic, consumers continue to favor shopping direct from the brands themselves, and Nike
remains the dominant athletic retailer amongst all cohorts. Amazon is, however, a rising #2 across all groups except for
It Girls (where it ranks much lower).
n Beauty and Grooming: Both It Girls and our mainstream women prefer Neutrogena for skincare (Clinique a close It
Girl #2) and Garnier is a top brand for haircare. It Girls are more likely to shop at Ulta and Sephora, while mainstream
women gravitate to purchases at Walmart, Amazon, and Target. Cosmetics brands showed more fragmentation, with
Urban Decay, MAC, and Tarte the favorites among It Girls; these brands also make the top ten list for our national
sample of women. Within fragrances, It Girls prefer Chanel and Marc Jacobs and are most likely to purchase the
category at Sephora, Ulta, and Macy’s. Our national sample of women also loves Chanel (#3), but has a preference for
LB’s Bath & Body Works and Victoria’s Secret scents.
n Lingerie and Underwear: We note Victoria’s Secret registered the highest affinity among It Girls and mainstream
women in the lingerie brand category, garnering 57% and 61% of responses respectively. Aerie is a rising star in the
category, moving to the #2 slot among It Girls (from #6 prior) and experiencing a similar magnitude of increase in our
national cohort of women. Calvin Klein also scored favorably across all cohorts but its rank fell among It Girls to below
the ascendant Aerie.
3 September 2018
n Clothing and shoes: While the category remains particularly unconcentrated, fast-fashion H&M and Forever 21 scored
favorably as both retailers and brands for our It Girl cohort. Athletic and active brands notably gained momentum in
footwear this year, with Nike, Adidas, Vans, and Converse taking four of the five It Girl preferences. Steve Madden
retained its #2 rank for It Girl footwear, while the brand fell several slots among our national sample of women. It Girls
prefer to shop for shoes at Nordstrom, DSW, and Nike, where we note Zappos.com fell from the top five loved
retailers this year.
n Luxury and handbags: Gucci gained prominence in several categories but is most loved as a luxury brand, as is Louis
Vuitton. It Girls prefer to shop for luxury and handbags at Nordstrom. In handbags, Kate Spade, Michael Kors, and
Coach all registered as favorite brands for It Girls and our national sample of women. Amazon is the preferred retailer for
mainstream women and a top ten retailer for It Girls for handbags despite not having official partnerships with the top
ranked brands, however this share has not moved much in the last year.
Key Stock Ideas

TPR (CL-Buy, covered by Alexandra Walvis): Kate Spade is in ascendency as an increasingly preferred brand across
cohorts. Importantly, Kate Spade is the top ranked handbag brand among It Girls in 2018, garnering 15% share. While Coach’s
share of responses has seen a small decline, the brand continues to dominate mainstream women’s preferences, achieving a
22% share of answers for this group. Coach also occupied the #3 / #2 spot as a handbag retailer for It Girls / mainstream
women, ranking above Macy’s for both. Finally, we highlight the handbag category as one where 1) share is particularly
consolidated among top brands; and 2) Amazon’s share as a preferred retailer has not materially increased Y/Y for either
mainstream women or for It Girls. Our Buy rating (on the Conviction List) is predicated upon a growth and margin trajectory
that we see as underappreciated by the street. Our $61, 12-month price target is based on 18x Q5-Q8 P/E. Key risks include
(-) fading handbag momentum, Coach gross margin declines, lighter Kate Spade synergies / growth, and higher Stuart
Weitzman costs.
JWN (CL-Buy, covered by Alexandra Walvis): Nordstrom remains the fashion retail destination of choice among It Girls,
ranking as the top clothing, handbag, shoe and luxury retailer for this group. The retailer is also increasingly establishing itself
as an athletic retailer with this fashion forward consumer, and It Girls even rank Nordstrom above Macy’s in most beauty
categories (with the exception of fragrance). For our “Conde Man”, Nordstrom ranks above other department stores across
clothing, fragrance and luxury. Our Buy rating (on the Conviction List) on Nordstrom is partially predicated on its position as a
fashion destination, driven by its attractive store environment, and curated selection of preferred, high end products. Our
$73, 12-month price target is based on 7.5x Q5-Q8 EV/EBITDA. Key risks include (-) Rack business deceleration, higher spend
on strategic investments, and full price traffic declines.
3 September 2018
Amazon (CL-Buy, covered by Heath Terry): We continue to believe Amazon’s progress across apparel categories will mirror
its steady press forward in every other category it has prioritized (electronics, media, cloud computing, etc.): start small,
leverage 3rd parties, use scale to attract brands, and gradually grow the footprint until any brand not working with it loses
access to one of the fastest growing pools of consumer spending. Ecommerce growth remains on an accelerating trend, as
demonstrated by two consecutive years of accelerating growth reported by the CB and survey results highlighting a doubling
of respondents increasing their online shopping versus last year. In short, not only do we believe Amazon remains a driver of
that trend but also the primary beneficiary as its scale and consumer value proposition grow with further share shift. In
addition to ranking as the top shopping app across all cohorts, Amazon continues to gain share as a retailer across individual
categories. Notably, Amazon surpassed Nike for the #1 spot in shoes across multiple cohorts and now ranks #1 among
clothing retailers across all cohorts, except It Girls, with still improving trends. Surprisingly, Amazon moved to #1 among
luxury retailers across 4 out of 6 cohorts, highlighting the strength of its 3rd party network and strategy, in our view. Our
$2,300 price target (12-month) is based on our SOTP, implying 27x 2019E EV/EBITDA. Key risks include (-) Competition,
margin pressures from investment, and valuation.
Adidas (Buy, covered by Richard Edwards): Improved mind share for Adidas should alleviate investor concerns that the
brand faces headwinds derived from 1) Nike returning to growth in the US and 2) a choppy transition from the brand’s
traditional silhouettes (Stan Smiths, Super Stars) to newer franchises (NMD, Boost). We expect ongoing premium sales
growth in APAC and North America amid a reacceleration of sports footwear sales growth alongside modest operating
leverage to drive a +15% FY18-22E EPS CAGR. Our €240 12m price target is DCF-derived and equates to a 15x 2020E
EV/EBIT multiple. Key downside risks include stalled market share gains in the US/Greater China and the absence of
US/Reebok margin uplift.
Kering (Buy, covered by Louise Singlehurst): Our survey shows that Gucci, which contributes 80% of Kering EBIT, remains
top of mind amongst luxury consumers. We think that Gucci’s positioning not only as the top luxury brand, but also a top
contender for It Girls’ favorite luxury product retailer, demonstrates the continued brand heat. Going forward we expect
ongoing strength in top-line growth accompanied by margin expansion and think that valuation is undemanding at these
levels (16% discount to the luxury sector on 2019E EV/EBIT). Our €590 12-month price target is DCF-derived using a WACC
of 8% and a terminal growth rate of 3%. Key risks include slower growth at Gucci brand, lower rollout of E-Concession
platforms, and lower barriers to entry / pricing transparency for luxury products.
Estee Lauder (Buy, covered by Jason English): Investors have been concerned about MAC’s market saturation due to the
recent sales declines in the wake of brick-and-mortar closures in the US and UK. However, given consumers’ preference for
the brand (evidenced by the survey) and the strong results MAC recorded in Asia and Travel retail, we believe this is more of
a channel issue than brand issue. We have already begun to see a turnaround with the distribution expansion into ULTA (the
second ranked retailer to buy cosmetics for fashion forward women) and we expect this to continue in FY19 as its
3 September 2018
distribution in ULTA expands further. Too Faced also ranked high among fashion forward women, suggesting momentum
should continue through FY19. Combining early signs of headwinds abating in the US and our confidence in sustained
growth in China and China-linked travel retail, we believe EL has to potential to compound EPS at a double digit rate. Overlay
EL trading at a more attractive relative P/E multiple (25% below its March high and now closer to 10-year average), we view
this stock as well positioned in Consumer Staples. Our 12-month target price of $171 is based on equal weighted 31x P/E
and 20x EV/EBITDA, both on FNTM estimates. Risks include weaker industry growth, market share weakness, more
pronounced China lead deceleration, and FX.
Procter & Gamble (Neutral, covered by Jason English): Gillette ranked as the number two brand in Men’s preferred
Grooming brands for the second straight year, behind Axe. However, only 11% of men surveyed this year recorded Gillette as
their most preferred grooming brand compared to just over 14% of the men surveyed last year that ranked Gillette as their
most preferred grooming brand, registering a -340bps decline. This analysis combined with other market data points
confirms that PG is struggling to maintain its stranglehold in the Grooming category with the emergence of new, lower
priced brands such as Harry’s, who appeared on the list of men’s favorite grooming brands in our survey this year. In an effort
to curb market share losses ahead of Harry’s entry into bricks-and-mortar retailers, PG proactively invested in price to better
position the Gillette brand. Despite the lower prices, PG has seen its market share decline modestly. Given the company’s
focus on market share, we expect margin and profit growth to remain subdued. We are Neutral rated on PG. Our 12-month
target price of $81 is based on equal weighted 18x P/E and 13x EV/EBITDA multiples, both on FNTM estimates. Risks to our
rating and price target include better or worse FX changes, productivity realization, innovation success or competitive
retaliation to PG’s promotional investment.
3 September 2018
The Love List: The 2018 It Girl Brand Affinity Index. Highest It Girl favorability scores within categories.
57% 38% 34% 17% 15% 15% 15%
Lingerie Brand Cosmetics Retailer Athletic Brand Cosmetics Retailer Luxury Retailer Handbag Brand Handbag Brand
12% 12% 11% 11% 11% 10% 10%

Athletic Brand Luxury Brand Handbag Brand Athletic Brand Haircare Retailer Fragrance Brand Cosmetics Brand
9% 9% 8% 8% 8% 8% 8%
Skincare Brand Fragrance Retailer Shoe Retailer Luxury Brand Shoe Brand Fragrance Brand Cosmetics Brand
8% 7% 7% 7% 7% 6% 6%
Haircare Retailer Skincare Brand Lingerie Brand Clothing Retailer Haircare Retailer Cosmetics Brand Fragrance Brand
6% 5% 5% 5% 5% 5%
Athletic Brand Shoe Brand Clothing Brand Lingerie Brand Haircare Brand Shoe Brand Source: Conde Nast-Goldman Sachs Love List
3 September 2018
The Next List and Iconic Movers:

Top answers to the question: "Are there any fashion, athletic, or beauty / grooming brands that you are buying from or hearing about today that you weren't focused on last
year“ Split by "Emerging Brands" (The Next List); and "Established Brands" (Iconic Movers)
The Next List The Iconic Movers

Source: Conde Nast-Goldman Sachs Love List
3 September 2018
The National List: 2018 Mainstream Women Brand Affinity Index. Highest favorability scores within categories.
61% 41% 22% 22% 18% 15% 14% 13% 13%
Lingerie Brand Athletic Brand Haircare Retailer Handbag Brand Handbag Brand Fragrance Brand Cosmetics Retailer Cosmetics Retailer Athletic Brand
12% 11% 11% 10% 10% 10% 10% 9% 9%

Luxury Retailer Luxury Retailer Skincare Brand Cosmetics Brand Luxury Brand Haircare Brand Haircare Retailer Athletic Brand Cosmetics Brand
9% 8% 8% 8% 8% 8% 8% 7% 7%
Handbag Brand Luxury Retailer Skincare Brand Clothing Retailer Skincare Brand Haircare Brand Cosmetics Brand Haircare Brand Haircare Brand
7% 7% 7% 6% 6% 6% 6% 6% 6%
Shoe Brand Cosmetics Brand Fragrance Brand Shoe Brand Shoe Retailer Clothing Brand Haircare Brand Clothing Brand Cosmetics Brand
6% 5% 5% 5% 5% 5% 5% 5%
Shoe Retailer Haircare Brand Cosmetics Brand Shoe Brand Skincare Brand Athletic Brand Luxury Brand Clothing Retailer
3 September 2018
IT GIRL SHOPPING HABITS: What’s different this year?
More shopping occasions. 19% of It Girls highlighted they were shopping and spending more than the prior year, well
ahead of the 8% of respondents who were looking to shop and spend less. Over half of those who indicated they looked to
spend more specifically called out either (1) buying more beauty, makeup, and skincare product, or (2) purchasing new items
given changing tastes or new styles.
It Girls moving online. The number one response to how are you shopping differently was more online and less in-store
shopping among our It Girl population, with 19% of respondents indicating a change in behavior. After factoring in other
online-enabled behaviors, such as more research and price comparisons before purchasing (~4%), using more apps (~2%),
using Amazon more (~2%), and using more online rebate programs for cash back (~1.5%), total online-assisted shopping
behavior increases were indicated by almost 26% of our It Girl population, ahead of the prior year’s result.
Exhibit 1: The percent of It Girls reporting spending >25% of dollars in several categories Exhibit 2: But penetration at the 50% spending level fell Y/Y among our It Girl respondents
has grown Y/Y % of It Girl respondents that make at least 50% of purchases online in a category (based on
% of It Girl respondents that make at least 25% of purchases online in a category (based on responses to the question “For each of the following questions, what percentage of your spending
responses to the question “For each of the following questions, what percentage of your spending is done online”)
is done online”)
60% 30%
50% 25%
40% 20%
30% 15%
20% 10%
10% 5%
0% 0%
Clothing Shoes Athletic/ Workout Lingerie Handbag Clothing Shoes Athletic/ Workout Lingerie Handbag
Wear Wear
2017 2018 2017 2018
Source: Conde Nast-Goldman Sachs Love List Source: Conde Nast-Goldman Sachs Love List
3 September 2018
But online penetration still low. It Girls remain more likely to purchase offline than our national sample, particularly in
categories where product quality, experience, or curation are offered. Only 11% of our It Girl respondents reporting spending
>50% of their luxury and fragrance category spend online. While the share of It Girls reporting to spend >25% of their
dollars online is rising in most categories, those spending >50% of spend saw modest declines Y/Y.
Value a trend enabled by the shift online, creating a smarter consumer. 17% of our It Girls reported looking to be more
bargain conscious as they shopped vs. last year, with a number of participants citing sale shopping, waiting for deals, or
more awareness regarding their spend and impulse decisions. We see this shift enabled by the rise of online shopping,
where a proliferation of product offerings and price transparency helps consumers get the look they want for the right price.
Exhibit 3: On average, It Girls spend the most online in clothing and skincare Exhibit 4: The largest shift in It Girl shopping habits is the shift online; survey respondents
Average % of It Girl spend done online, by category also report shopping more and being more bargain conscious
% of respondents who note specific shopping shifts in response to the open ended question, “How
have your shopping behaviors evolved or changed in the last year? What are you doing differently
today that you weren’t doing a year ago?”
40%
It Girl Shopping Habits
30%
20% Shopping or
Moving Online Bargain Conscious
Spending More
10%
0%
19% 26% 17%
Haircare
Fragrances
Skincare
Shoes
Handbags
Clothing
Color Cosmetics
Lingerie/underwear
Luxury products
Athletic/Workout Wear
3 September 2018
ONLINE BEHAVIOR: Shift to online shopping is accelerating
Online the largest shift in behavior. When asked how their shopping behaviors have changed in the last year, 22% of
national survey respondents answered that they are doing more shopping online or using more online shopping tools. This is
above last year’s 11%, and higher than the percentage of answers allocated to the next most frequently given answers,
regarding discount shopping or brand/style consciousness. Men continued to spend more online than women, as is clear by
their preference for Amazon as a retail platform for most categories.
Heavy users of online platforms drive momentum in online spend. The percentage of respondents indicating they do
>50% of their spending online in given categories gained momentum this year, particularly in shoes and lingerie. Results
were more mixed for our national survey participants who spend >25% of their dollars online in a category, with clothing
penetration remaining near 60%, indicating that some consumers will continue to shop brick and mortar in the near term
given slower online adoption rates. It Girls, on the other hand, saw a higher proportion of spend >25% but declined in the
>50% bucket for most categories, potentially indicating there may be a near-term ceiling for online spend for fashion
conscious consumers.
Exhibit 5: When asked how shopping behavior has most evolved, a large number of Exhibit 6: Men make a greater proportion of their purchases online, while It Girls make less
respondents cite more online activity vs. the prior year than the broader female population
Responses among national survey participants to the open-source question “How have your % of consumers that make at least 50% of purchases online in each category
shopping behaviors changed or evolved in the last year?”
25% 40%
22%
35%
20% 30%
25%
15%
20%
11%
10% 15%
10% 9%
10%
5%
4% 5%
5%
0%
Luxury Fragrance Handbag/ Lingerie/ Athletic/ Shoes Clothing
0% Bags Underwear Workout
Brand/ Style Conscious Online Shopping Looking for discounts Wear
2017 2018 Men Women It Girl
3 September 2018
Exhibit 7: The proportion of consumers reporting they spend >50% of purchases online Exhibit 8: >50% of respondents do at least 25% of their spending online in clothing, shoes
accelerated this year across all categories and athletic; penetration among this group is largely flat Y/Y
% of national survey consumers that make at least 50% of purchases online in a category (based % of national survey consumers that make at least 25% of purchases online in a category (based
on responses to the question “For each of the following questions, what percentage of your on responses to the question “For each of the following questions, what percentage of your
spending is done online”) spending is done online”)
35% 70%
30% 60%
25% 50%
20%
40%
15%
30%
10%
20%
5%
10%
0%
Clothing Shoes Athletic/ Workout Lingerie Handbag 0%
Wear Clothing Shoes Athletic/ Workout Lingerie Handbag
Wear
2017 2018
2017 2018
Exhibit 9: Millennials indicate they spend more online in each category than Gen-Z, which Exhibit 10: Online spending for consumers in our sample suggests online spending is
could be a function of credit card accessibility and age highest among consumers in their late 20’s
% of consumers that make at least 50% of purchases online in a given category % of consumers that make at least 50% of purchases online in clothing
40% 50%
45%
35%
40%
30%
35%
25% 30%
25%
20%
20%
15%
15%
10% 10%
Cosmetics
Luxury
Handbag
Haircare
Lingerie
Fragrance
Shoes
Skincare
Workout
Clothing
Athletic/
Wear
5%
Color
0%
13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34
Gen Z Millennial
3 September 2018
SHARE SHIFTS: Preferences consolidating in shoes as athletic gains share
Athletic momentum driving consolidation of favorite brands among men. Our national sample of men revealed a more
consolidated list of favorites in clothing, shoes, and athletic brands. This is in part a function of the encroachment of athletic
brands on other categories; we note a higher preference for Nike and Adidas within men’s clothing, shoes, and athletic.
Among retailers, consolidation in preferences is predominantly a function of higher Amazon share.
Womens’ preferences are consolidating in handbag brands, shoes, and retailers. Women in our national sample had a
higher affinity for top-ranked brands in handbags, with concentration driven by strong preference for Coach, Michael Kors,
and Kate Spade. Stronger affinity for Nike and other athletic shoes drove higher concentration among shoe brands. Amazon
gained share in clothing and shoes as a preferred retailer, driving higher concentration in the category. We note women’s
preferences for athletic brands, clothing, lingerie, and retailers fragmented this year.
It Girls prefer a larger array of brands. Unsurprisingly, It Girls have much more fragmented preferences across the board
than other shoppers. This is particularly true in shoes and haircare brands, where top three concentration of 30%/14% is
11pts/9pts lower than our national sample of women. That said, these preferences are consolidating in several branded
categories, including clothing, shoes, and handbags.
Exhibit 11: Athletic & lingerie brand preferences are significantly more consolidated than Exhibit 12: Lingerie brand preferences are fragmenting, while handbags and shoes
clothing preferences among our sample of national women consolidate
Share of top three brands in each category among our sample of national women (responses to Change in share Y/Y of the top three brands in each category for national women (responses to the
the question “What is your favorite brand”) question “What is your favorite brand”)
80% 450bps
72% 368bps
70% 350bps 288bps
63%
250bps
60%
49% 150bps
50%
41% 50bps
40%
-50bps
30%
-150bps -90bps
20% 17%
-250bps
10% -350bps -317bps

-358bps
0% -450bps
Lingerie Athletic/ Workout Handbag Shoes Clothing Handbag Shoes Lingerie Clothing Athletic/ Workout
Wear Wear
3 September 2018
Exhibit 13: Retailer preferences for our sample of national women tend to be more Exhibit 14: Retailer preferences among our sample of national women have fragmented in
consolidated in categories where brands are more consolidated handbags but consolidated in clothing and shoes
Share of the top three retailers in each category among our sample of national women (responses Change in share Y/Y of the top three retailers in each category among our sample of national
to the question “What is your favorite retailer”) women (responses to the question “What is your favorite retailer”)
40% 400bps
36% 311bps
35% 300bps
30%
30% 200bps 172bps
26%
24%
25% 100bps
20% 0bps
15% -100bps -75bps
10% -200bps
5% -300bps
-281bps
0% -400bps
Athletic/ Workout Wear Handbag Retailer Shoes Retailer Clothing Retailer Clothing Retailer Shoes Retailer Handbag Retailer Athletic/ Workout
Retailer Wear Retailer
Exhibit 15: Men’s brand choices are also more consolidated than those of women in our Exhibit 16: It Girls have more fragmented brand preferences than the mainstream shopper,
national sample but those preferences are consolidating in several categories
Share of the top three brands in each category (responses to the question “What is your favorite Share of the top three brands in each category for It Girls vs. our sample of national women
brand”) among respondents in our national sample (responses to the question “What is your favorite brand”)
90% 80%
78%
80% 70%
73%
70% 67% 60%
61% 63%
60% 50%
52%
50% 40%
41%
38%
40% 35%
30%
30% 25%
20%
20%
20% 17%
10%
10%
0%
0% Clothing Handbag Shoes Athletic/ Workout Lingerie
Clothing Shoes Athletic/ Workout Wear Wear
Men (2017) Men (2018) Women (2017) Women (2018) Women (2017) Women (2018) IT Girl (2017) IT Girl (2018)
3 September 2018
AMAZON: Gaining traction across categories and cohorts
Amazon rising to become the top preferred retailer. Structural shifts towards online shopping among US consumers is
certainly not a new phenomenon, and Amazon has consistently gained share of the apparel and accessories market as it
enhances its offering across several categories.
Men prefer Amazon in almost every category. In every category surveyed, men chose Amazon as their #1 or #2 retailer.
Amazon overtook Nike as the preferred shoe retailer this year, narrowed the gap with the #1 ranked Nike in athletic, and
extended its lead by several points in clothing, bags and briefcases.
Amazon gained top rank for women in several categories. Our national sample of women indicated Amazon is now their
preferred clothing retailer (vs. #4 prior). Amazon is a close #2 for shoes and athletic, narrowing the gap between top ranked
Nike in both categories. The retailer is also a #2 choice for skincare and haircare retail. Amazon did lose modest share in
handbag retail, but nonetheless retained its #1 rank.
It Girls have a more nuanced view. Amazon favorability among It Girls was mixed, with the retailer gaining affinity in shoes
and handbags but losing popularity in clothing and athletic retail. It Girls were also more likely to pick multi-line shops for their
beauty purchases; we note a multiple rank differential between key retailers Sephora / Ulta and Amazon.
Exhibit 17: Men consistently rank Amazon as their top retail destination; our national sample of women is more likely to shop at Amazon than It Girls
Amazon’s rank as “favorite place to shop” by category and by respondent group; rank is relative to other retailers; Blue symbols designate the national sample of men, green symbols for our national
survey of women, and pink symbols indicate the rank among our It Girl respondents.
Amazon Affinity by Cohort
Handbags / Underwear / Color

Rank Clothing Shoes Athletic Skincare Haircare Grooming Luxury
Briefcases Lingerie Cosmetics
It Girl Rank 15 6 4 10 6 5 5 7 -- 5
3 September 2018
Exhibit 18: Men are more likely to shop on Amazon for clothing than women; It girls are the Exhibit 19: While Amazon has gained share of responses in clothing, shoes and athletic, it
least likely has marginally lost share in handbags
% of survey participants who say Amazon is their favorite clothing retailer % of national survey women who say Amazon is their favorite retailer in a category
National Survey Clothing

20% 12%
10%
15%
8%
IT Girl 10% Men 6%
4%
5%
2%
0% Athletic/ Workout Wear 0% Handbag
Millennial Women
Gen Z
Shoes
2017 2018 2017 2018
Exhibit 20: Among men, Amazon has gained share of responses across categories. 24% of Exhibit 21: It Girls take a more nuanced view, where Amazon has increased as a favorite
men say Amazon is their favorite retailer for bags & briefcases retailer in shoes and handbags but lost popularity in clothing and athletic
% of male national survey participants who say Amazon is their favorite retailer in a given % of It Girls that voted for Amazon as their favorite retailer in a given category
category
Clothing Clothing
25% 5%
20% 4%
15%
3%
10%
Grooming Shoes 2%
5%
1%
0%
Athletic/ Workout Wear 0% Handbag
Bags, Briefcases, Athletic/ Workout

Wallets Wear
2017 2018 Shoes

2017 2018
3 September 2018
A MORE CASUAL CONSUMER: Active fashion is now mainstream fashion
Active brands gain prominence in several categories. Our surveyed consumers indicated a rising preference for active and
athletic brands this year across all cohorts and in several categories. In clothing, Nike rose several slots to the #4 position
among our national survey of women, and we saw a similar response among men as Nike gained several points of share
within its top rank. Active and athletic brands comprised three of the top men’s clothing brands, with each brand gaining
popularity among our national survey across age groups.
Casualization of footwear trends. The consolidation of market share among active and athletic-inspired brands is even
more prominent in the footwear category, where these offerings occupied all nine top spots in our national cohort shoe
ranking, driven by increased favorability among women. It Girls showed a similar increase in affinity for athletic brands; they
ranked Nike, Adidas, Vans, and Converse #1, 3, 4 and 5, respectively. Nike and Adidas posted improvements across the
board, while Skechers, New Balance, Reebok, Jordan’s, and Puma also improved share. Casual shoe brands such as Steve
Madden, Nine West, UGG, and Clarks declined in popularity in our national sample.
Exhibit 22: Nike and Adidas gained collective share in the shoes and clothing brand Exhibit 23: Almost all preferred brands in the shoe category are sneaker / active / athletic
categories despite mixed performance in athletic offerings
Y/Y pt change in affinity for Nike and Adidas in the national survey, separated by gender Top ranked brands in the shoe category for our national sample
Rank NATIONAL SAMPLE WOMEN MEN
10.0% Nike Adidas Brand Brand Brand
8.0% 1 Nike Nike Nike
2 Adidas Converse Adidas
6.0%
3 Converse Skechers New Balance
4.0%
4 Skechers Adidas Jordan’s
2.0% 5 Vans Vans Puma
6 New Balance Steve Madden Skechers
0.0%
7 Jordan’s Jordan’s Converse
-2.0%
8 Puma New Balance Vans
-4.0% 9 Reebok Nine West Reebok
10 Steve Madden Puma Asics
-6.0%
Shoes Clothing Athletic Shoes Clothing Athletic
WOMEN MEN
3 September 2018
APPS: Amazon and multibrand platforms preferred; social media increasingly a favorite
Social media apps preferred among consumers. Social media apps are increasingly gaining mindshare at the expense of
shopping apps, and this trend is particularly pronounced among It Girls. Instagram is the key driver, with the app overindexing
among women, millennials, and It Girls. Men have the highest affinity towards Facebook in our sample, while Gen-Z
overindexes to Snapchat.
Amazon the leader in shopping apps. While online shopping apps are unlikely to be a favorite for our target demographic,
when an app is being used for this purpose it is significantly more likely to be Amazon than anything else. Momentum for the
Amazon app appears to be strong - when we asked our national cohort what apps they were using today that they weren’t
using much a few months ago, Amazon was the most frequent response.
Among the top It Girl favorites, a preference for branded multiline retailers emerges. It Girls in our sample
demonstrated a preference for a variety of multiline retailers, with high affinity rankings for multi-branded businesses such as
Sephora, Ulta, Nordstrom, and Urban Outfitters vs. our sample of national women. Other favorites include platforms of
preferred mass brands and marketplaces (Target, Amazon, Ebay, and Etsy), resale platforms including Poshmark, and factory
direct app Wish.
Exhibit 24: Social media apps dominate consumer preferences, and this dominance has Exhibit 25: It Girls are less likely than our national sample to list an online shopping app as
increased materially vs last year their favorite
Y/Y comparison of responses to the question “What are your favorite mobile apps?” among our Y/Y comparison of responses to the question “What are your favorite mobile apps?” among our It
national survey cohort Girl cohort
40% 40% 36%

35%
% of Favorite Mobile App

35% 35%
30% 30%
25% 25%
20% 20%
15% 15%
10%
7% 7%
10% 5% 6% 10% 7%
4% 3% 5% 4%
5% 3% 2% 5% 2%
1% 1% 1%
0% 0%
Retailer App
Video Streaming
Retailer App
Video Streaming
Music
Music
Social Media
Fitness
Bargaining
Social Media
Coupon
Fitness
Bargaining
Reviews
Coupon
Reviews
Online Shopping
Online Shopping
2017 Inc + Dec - 2017 Inc + Dec -
3 September 2018
Exhibit 26: Facebook still tops the list of favorite apps among women, though Instagram is Exhibit 27: Men are the only cohort for whom preference for Amazon outstrips Instagram
catching up Responses to the question “What are your favorite mobile apps?” among men in the national
Responses to the question “What are your favorite mobile apps?” among women in the national survey
survey
16% 12% 12%


14% 13% 10% 9%
12% 11%
8%
8%
10% 6%
8% 7% 6%
8% 6%
6%
4%
4% 3%
2%
2%
0% 0%
Youtube
Instagram
Pinterest
Instagram
Facebook
Facebook
Snapchat
Snapchat
Amazon
Amazon
2017 Inc + Dec - 2017 Inc +
Exhibit 28: For Gen Z, YouTube, Snapchat and Amazon have gained the most share Exhibit 29: Millennials have a greater preference than Gen Z for Facebook
Gen Z responses to the question “What are your favorite mobile apps?” Millennials responses to the question “What are your favorite mobile apps?”
16% 16%

14% 14% 13%
11% 11%
12% 10% 12%
10% 10% 9%
8%
7%
8% 6% 8%
6% 6% 5%
4%
4% 4%
2% 2%
0% 0%
Youtube
Instagram
Facebook
Facebook
Snapchat
Snapchat
Instagram
Twitter
Amazon
Amazon
2017 Inc + Dec - 2017 Inc + Base Dec -
3 September 2018
Exhibit 30: It Girls’ preference for Instagram in particular is rising Exhibit 31: Amazon is most frequently cited as a new app being used by consumers
It Girls Responses to the question “What are your favorite mobile apps?” Responses to the question from all survey participants “What apps are you using today that you
were not using much several months ago?”
20% 14%
18% 16%
16% 12%
14%
12% 10%
10% 8% 7%
8% 8%
6% 5%
4%
4% 6%
2%
0% 4%
Twitter
Instagram
Pinterest
Facebook
Snapchat
2%
0%
Snapchat
Ibotta
Wish
Target
Walmart
Ebay
Instagram
Facebook
Twitter
Amazon
2017 Inc + Dec -
Exhibit 32: Amazon is the top shopping app among all cohorts. It Girls prefer Sephora and Ulta, while our national sample of women pointed to an affinity for Walmart and Ebay
Responses to the question: “What are your favorite shopping apps?”
Rank IT GIRLS NATIONAL SAMPLE WOMEN MEN MILLENNIAL GEN Z
Brand % Chg Brand % Chg Brand % Chg Brand % Chg Brand % Chg Brand % Chg
1 Amazon 16% Amazon 31% Amazon 29% Amazon 35% Amazon 30% Amazon 34%
2 Sephora 8% Ebay 8% Walmart 6% Ebay 10% Ebay 7% Ebay 8%
3 Target 5% Walmart 7% Ebay 6% Walmart 7% Walmart 7% Walmart 6%
4 Ulta 4% Target 4% Target 5% Adidas 3% Target 5% Wish 5%
5 Wish 3% Wish 4% Wish 5% Target 3% Wish 3% Kohls 4%
6 Poshmark 3% Kohls 3% Kohls 4% Nike 3% Kohls 3% Target 3%
7 Ebay 3% Macy’s 2% Macy’s 2% Macy’s 2% Adidas 2% Macy’s 3%
8 Nordstrom 3% Groupon 2% Groupon 2% Kohls 2% Groupon 2% Victoria’s Secret 1%
9 Urban Outfitters 2% Etsy 1% Etsy 2% Puma 1% Ibotta 2% Etsy 1%
10 Etsy 2% Adidas 1% Ibotta 2% Best Buy 1% Etsy 2% American Eagle 1%
Top 3 28% 46% 41% 53% 44% 48%
3 September 2018
CLOTHING BRANDS: Athletic brands gaining share in the fragmented clothing category
Women’s clothing a fragmented category. Clothing favorites are significantly less concentrated than in any other category,
and there is no clear national pick among It Girls or Women in our sample. Specialty and fast fashion retailers generally score
highly, with Forever 21, H&M, Zara, American Eagle, and Free People the top five It Girl picks.
Athletic brands gaining share. While Nike has long been a top brand in the athletic and shoe category, it continues to gain
share as the top clothing brand for many consumers in our national survey. For men, Nike is the clear market leader and
athletic brands make up three of the top four listed brands, all of which gained mindshare in the past year.
Old favorites returning for a reboot. Outside of athletic brands, several heritage brands with expertise in denim have
gained momentum. In our national sample, we saw improvement in affinity for Levi’s, Calvin Klein, Wrangler, and Ralph
Lauren; Guess joined the top twenty list this year for It Girls.
Exhibit 33: Clothing is our most fragmented category in terms of consumer favorites. It Girls and Women prefer specialty retailers, but athletic and heritage brands are gaining share for our
national sample.
What is your favorite clothing brand? Responses ranked by % choice. Chg indicates % choice differential Y/Y
1 Forever 21 5% Nike 11% Forever 21 6% Nike 21% Nike 10% Nike 13%
2 H&M 5% American Eagle 5% American Eagle 6% Adidas 8% Old Navy 5% American Eagle 7%
3 Zara 5% Old Navy 4% Old Navy 5% Levi’s 6% Adidas 4% Forever 21 5%
4 American Eagle 4% Levi’s 4% Nike 4% Under Armour 5% Levi’s 4% Under Armour 5%
5 Free People 3% Adidas 4% Victoria’s Secret 4% Old Navy 4% H&M 3% Levi’s 5%
6 Old Navy 3% Forever 21 4% H&M 4% Gap 4% American Eagle 3% Victoria’s Secret 4%
7 Express 3% H&M 3% Levi’s 3% Wrangler 3% Forever 21 3% Old Navy 4%
8 J.Crew 3% Gap 3% Express 3% American Eagle 3% Gap 3% Adidas 3%
9 Urban Outfitters 2% Under Armour 3% Gap 2% H&M 3% Express 3% Gap 3%
10 Madewell 2% Victoria’s Secret 2% Calvin Klein 2% Calvin Klein 2% Calvin Klein 3% H&M 3%
11 Gap 2% Calvin Klein 2% Hollister 2% Polo 2% Zara 2% AØropostale 2%
12 Loft 2% Express 2% Torrid 2% Banana Republic 2% Banana Republic 2% Abercrombie & Fitch 2%
13 Victoria’s Secret 2% Wrangler 2% Rue 21 2% Express 2% Wrangler 2% Hollister 2%
14 Brandy Melville 2% AØropostale 1% Zara 2% Tommy Hilfiger 2% Under Armour 2% Guess 2%
15 Banana Republic 1% Hollister 1% AØropostale 1% Ralph Lauren 1% Torrid 2% Hot Topic 1%
16 Topshop 1% Zara 1% Guess 1% AØropostale 1% J.Crew 1% Calvin Klein 1%
17 Calvin Klein 1% Banana Republic 1% Under Armour 1% Abercrombie & Fitch 1% Tommy Hilfiger 1% Gucci 1%
18 Torrid 1% Ralph Lauren 1% J.Crew 1% Zara 1% Hollister 1% Wrangler 1%
19 ASOS 1% Tommy Hilfiger 1% Hot Topic 1% Walmart 1% Kohl’s 1% Charlotte Russe 1%
20 Guess 1% Torrid 1% Kohl’s 1% Columbia 1% Ralph Lauren 1% Express 1%
Top 3 15% 20% 17% 35% 19% 25%
3 September 2018
CLOTHING RETAILERS: Amazon adoption accelerating among mainstream consumers
Amazon mindshare accelerating in clothing. Our national sample revealed a widening gap between Amazon and more
traditional retailers, with Amazon preference rising to mid teens from high single digits. This stronger showing was
particularly notable across mainstream women, where Amazon jumped to the top spot from #4 last year, gaining 4 points of
share Y/Y. We note share donors were predominantly Specialty Retail and select department store banners.
Share shifts between traditional formats. Fashion forward women remain loyal to traditional retail formats, gravitating in
particular towards Nordstrom and Fast Fashion retailers. Within our department store coverage, Nordstrom retained its top
spot among It Girls but lost modest share. Kohl’s gained momentum in the national sample for millennials and across both
genders, but saw some softness in Gen Z and among It Girls. Macy’s gained momentum in the national sample but dropped
among It Girls. Wal-Mart’s share of responses increased among national sample participants, while Target’s share declined.
This was driven by male shoppers and Gen Z, whose preference for Wal-Mart is greater. Interestingly this also mirrors trends
in the apps category, where preference for Wal-Mart’s app increases while affinity for Target’s more often declines.
Exhibit 34: Amazon pulled ahead of peers this year as a favorite clothing retailer in our national sample, while It Girls remain loyal to traditional formats
What is your favorite place to shop for clothing? Responses ranked by % choice. Chg indicates % choice differential Y/Y
1 Nordstrom 7% Amazon 13% Amazon 10% Amazon 18% Amazon 13% Amazon 13%
2 Forever 21 7% Kohl’s 8% Kohl’s 8% Walmart 9% Kohl’s 7% Walmart 9%
3 H&M 5% Walmart 8% Walmart 7% Kohl’s 7% Walmart 7% Kohl’s 8%
4 Target 3% Macy’s 6% Forever 21 6% Macy’s 7% Macy’s 5% Macy’s 7%
5 Zara 3% Old Navy 4% Macy’s 6% Nike 7% Old Navy 5% American Eagle 6%
6 Urban Outfitters 3% American Eagle 4% American Eagle 5% Adidas 5% Target 4% Forever 21 5%
7 American Eagle 3% Forever 21 4% Old Navy 5% Old Navy 4% Nike 3% Old Navy 4%
8 ASOS 3% Target 3% Target 4% American Eagle 3% Adidas 3% Nike 4%
9 Old Navy 3% Nike 3% H&M 3% Gap 2% American Eagle 3% H&M 3%
10 Kohl’s 2% H&M 3% Nordstrom 2% H&M 2% Forever 21 3% Target 2%
11 Express 2% JC Penney 2% JC Penney 2% JC Penney 2% H&M 3% Hot Topic 2%
12 Macy’s 2% Gap 2% Victoria’s Secret 2% Target 2% Nordstrom 3% Gap 2%
13 T.J.Maxx 2% Nordstrom 2% Torrid 2% Dick’s 2% Express 2% JC Penney 2%
14 Anthropologie 2% Adidas 2% Express 2% Ebay 2% JC Penney 2% Victoria’s Secret 2%
15 Amazon 2% Express 2% Gap 2% Express 2% Gap 2% Ebay 2%
16 J.Crew 2% Victoria’s Secret 1% Hot Topic 2% Nordstrom 1% Zara 2% Dick’s 2%
17 Madewell 2% Ebay 1% Rue 21 1% Calvin Klein 1% Torrid 2% AØropostale 1%
18 Torrid 2% Hot Topic 1% T.J.Maxx 1% Zara 1% Banana Republic 1% Hollister 1%
19 Victoria’s Secret 2% Torrid 1% Zara 1% Banana Republic 1% Ross 1% Nordstrom 1%
20 Fashion Nova 1% Zara 1% Ebay 1% Forever 21 1% T.J.Maxx 1% Rue 21 1%
Top 3 19% 28% 24% 34% 28% 30%
3 September 2018
HANDBAG BRANDS: Kate Spade and Michael Kors gain momentum
Battle for dominance among Coach, Kate Spade, and Michael Kors. It Girls identified most with Kate Spade and Michael
Kors as their favorite handbag brands. Coach declined in popularity for It Girls and in our national sample of Millennial
women, but improved among Gen Z respondents. We believe Coach’s stronger performance among Gen Z is likely driven by
the brand’s strategic collaboration with influencer and musician Selena Gomez.
Luxury brand affinity bifurcates. Gucci and Louis Vuitton gained momentum across all of our surveyed cohorts this year.
Gen Z and It Girls saw a multiple point preference shift towards both brands, while Millennial women saw more modest
increases in affinity. However, not all luxury brands improved this year - both Chanel and Prada saw decreases in affinity
scores across all of our surveyed cohorts. Longchamp and Burberry joined the top 20 affinity list for It Girls this year.
Exhibit 35: Kate Spade gained momentum in handbags across every group we surveyed
What is your favorite handbag brand? Responses ranked by % choice. Chg indicates % choice differential Y/Y
Rank IT GIRLS WOMEN MILLENNIAL GEN Z
Brand % Chg Brand % Chg Brand % Chg Brand % Chg
1 Kate Spade 15% Coach 22% Coach 19% Coach 28%
2 Michael Kors 15% Michael Kors 18% Michael Kors 17% Michael Kors 19%
3 Coach 11% Kate Spade 9% Kate Spade 10% Gucci 10%
4 Louis Vuitton 6% Gucci 6% Gucci 5% Kate Spade 6%
5 Gucci 4% Vera Bradley 4% Vera Bradley 4% Vera Bradley 5%
6 Chanel 3% Louis Vuitton 3% Louis Vuitton 3% Louis Vuitton 4%
7 Betsey Johnson 2% Fossil 2% Fossil 2% Chanel 2%
8 Marc Jacobs 2% Chanel 2% Dooney & Bourke 2% Forever 21 2%
9 Rebecca Minkoff 2% Dooney & Bourke 2% Chanel 1% DKNY 1%
10 Dooney & Bourke 2% Guess 1% Guess 1% Nike 1%
11 Guess 2% Nike 1% Nine West 1% Betsey Johnson 1%
12 ChloØ 1% Betsey Johnson 1% Betsey Johnson 1% Charming Charlie 1%
13 Vera Bradley 1% Prada 1% Calvin Klein 1% ChloØ 1%
14 Longchamp 1% Forever 21 1% Dolce & Gabbana 1% Guess 1%
15 Tory Burch 1% Kohl’s 1% Marc Jacobs 1% Juicy Couture 1%
16 Fossil 1% Marc Jacobs 1% Nike 1% Kohl’s 1%
17 Prada 1% Nine West 1% Prada 1% Prada 1%
18 Madewell 1% Target 1% Steve Madden 1% Target 1%
19 Nine West 1% Calvin Klein 1% Amazon 1% Versace 1%
20 Burberry 1% Dolce & Gabbana 1% HermŁs 1%
Top 3 42% 49% 46% 56%
3 September 2018
HANDBAG RETAILERS: It Girls prefer Nordstrom as a shopping destination
Amazon a handbag destination, but not gaining meaningful share. Our national survey sample respondents again
ranked Amazon as a top destination for handbag retail, while our Conde Nast It Girl respondents ranked Amazon as No. 6.
Although Amazon ranks highly, it did not gain significant share among any of our demographics this year.
Nordstrom gains share among It Girls, while Macy’s seeing momentum with Gen Z in our national sample:
Nordstrom gained share among It Girls this year, becoming the top handbag destination for a customer group that tends to
prefer a more diverse set of handbag brands and which is more apt to select luxury brands as their bag brand of choice.
Among mainstream women, Macy’s lost share among millennial women but gained share in Gen Z. Our national sample of
women also indicated they are likely to shop for handbags at mass / off-price channels such as Walmart and T.J. Maxx.
Exhibit 36: Amazon a top handbag destination but affinity across cohorts flat to modestly down Y/Y as other retailers strengthen competitive positioning; It Girls prefer Nordstrom and brand
stores
What is your favorite place to shop for handbags? Responses ranked by % choice. Chg indicates % choice differential Y/Y
1 Nordstrom 11% Amazon 11% Amazon 11% Macy’s 11%
2 Kate Spade 9% Coach 10% Coach 9% Amazon 11%
3 Coach 7% Macy’s 9% Macy’s 8% Coach 11%
4 Macy’s 6% Michael Kors 6% Michael Kors 6% Kohl’s 6%
5 Michael Kors 5% Kohl’s 5% T.J.Maxx 6% Michael Kors 6%
6 Amazon 4% Walmart 5% Walmart 5% Walmart 4%
7 T.J.Maxx 3% T.J.Maxx 4% Kohl’s 4% Nordstrom 4%
8 Target 3% Kate Spade 3% Kate Spade 4% Vera Bradley 4%
9 Gucci 2% Nordstrom 3% Target 4% Gucci 3%
10 Louis Vuitton 2% Target 3% Ebay 3% Kate Spade 2%
11 Kohl’s 2% Vera Bradley 3% Nordstrom 3% T.J.Maxx 2%
12 Chanel 2% Ebay 3% Vera Bradley 2% Dillard’s 1%
13 Marshall’s 1% Gucci 2% Gucci 2% Ebay 1%
14 Saks Fifth Avenue 1% JC Penney 2% JC Penney 2% Guess 1%
15 Bloomingdale’s 1% Dillard’s 1% Dillard’s 1% Hot Topic 1%
16 Dillard’s 1% Chanel 1% Ross 1% JC Penney 1%
17 Burlington 1% Ross 1% Chanel 1% Marshall’s 1%
18 H&M 1% Belk 1% Fossil 1% Target 1%
19 Forever 21 1% Forever 21 1% Belk 1% Belk 1%
20 Guess 1% Marshall’s 1% Burlington 1% Chanel 1%
Top 3 28% 30% 29% 33%
3 September 2018
SHOE BRANDS: Nike still the clear favorite, but other athletic brands also post strong showing
Nike the clear leader. The top ranking shoe brand across all survey cohorts was Nike, with the brand posting the strongest
scores with Men and Gen Z. Nike pulled ahead of competitors this year as well, widening the gap between its category lead
and the #2 ranked brand in our national sample due to stronger relative performance in our Women and Gen Z samples.
Athletic / active shoe brands top choices. In our national sample, all of the top nine spots were occupied by active and
athletic brands (vs. seven of the top nine last year), driven by increased favorability among women. It Girls also increasingly
favored these brands. Nike and Adidas posted improvements across the board, while Skechers, New Balance, Reebok,
Jordan’s, and Puma also improved share. Casual shoe brands such as Steve Madden, Nine West, UGG, and Clarks declined
in popularity in our national sample.
It Girls prefer fashion options. Our It Girl sample demonstrated a higher affinity for Steve Madden. Other top fashion
choices include Christian Louboutin, Aldo, TOMS, Sam Edelman, and Frye, though we note several of these brands declined
in popularity. Several sneaker brands popular among our national sample are not present in our It Girl top 20 affinity list.
Exhibit 37: Nike remains the category leader across all surveyed demographics
What is your favorite shoe brand? Responses ranked by % choice. Chg indicates % choice differential Y/Y
1 Nike 15% Nike 34% Nike 28% Nike 42% Nike 30% Nike 39%
2 Steve Madden 8% Adidas 9% Converse 7% Adidas 15% Adidas 10% Adidas 9%
3 Adidas 7% Converse 5% Skechers 6% New Balance 4% Skechers 5% Converse 7%
4 Vans 5% Skechers 5% Adidas 5% Jordan’s 3% Converse 4% Vans 6%
5 Converse 5% Vans 4% Vans 5% Puma 3% New Balance 3% Skechers 4%
6 Christian Louboutin 3% New Balance 3% Steve Madden 3% Skechers 2% Puma 3% Jordan’s 3%
7 Aldo 2% Jordan’s 3% Jordan’s 2% Converse 2% Jordan’s 2% New Balance 2%
8 TOMS Shoes 2% Puma 2% New Balance 2% Vans 2% Vans 2% UGG 2%
9 Sam Edelman 2% Reebok 2% Nine West 2% Reebok 2% Nine West 2% Gucci 2%
10 Frye 2% Steve Madden 2% Puma 2% Asics 1% Steve Madden 2% Reebok 2%
11 Cole Haan 2% Nine West 1% UGG 2% Clark’s 1% Asics 2% Puma 1%
12 Nine West 2% Asics 1% Reebok 2% Timberland 1% Reebok 2% TOMS Shoes 1%
13 UGG 2% UGG 1% Asics 1% Aldo 1% Sperry 1% Payless 1%
14 Skechers 2% Sperry 1% Gucci 1% Sperry 1% Clark’s 1% Steve Madden 1%
15 Dr. Martens 1% TOMS Shoes 1% TOMS Shoes 1% Walmart 1% Jessica Simpson 1% Asics 1%
16 Gucci 1% Clark’s 1% Sperry 1% Cole Haan 1% Aldo 1% Under Armour 1%
17 Puma 1% Gucci 1% Fila 1% Old Navy 1% Timberland 1% Aldo 1%
18 Franco Sarto 1% Aldo 1% Jessica Simpson 1% Under Armour 1% Tory Burch 1% Cole Haan 1%
19 Jessica Simpson 1% Timberland 1% Payless 1% Champion 1% Fila 1%
20 Vince Camuto 1% Cole Haan 1% Tory Burch 1% Coach 1% Michael Kors 1%
Top 3 30% 48% 41% 61% 45% 54%
3 September 2018
SHOE RETAILERS: Nike and Amazon consolidate as top retailers
Amazon gains several points of share. Across all surveyed demographics, Amazon gained several points of share, with the
platform moving up to the #1 retailer slot for our National Sample, Men, and Millennial cohorts vs. #2 prior. Similarly, our
fashion-forward sample of It Girls now rank Amazon #4, ahead of Macy’s and Zappos.com.
Nike perceived as both a brand and a retailer. Nike’s strategy to expand its direct to consumer platform is gaining
momentum, with the company posting affinity share gains as both a brand and a retailer this year for our national sample and
our fashion-forward It Girl.
Mixed performance among traditional retail. Nordstrom and Macy’s ceded affinity share this year in our It Girl and national
sample, but both gained momentum among our Gen Z survey respondents. Kohl’s gained momentum across all cohorts,
while DSW saw mixed results but generally fell in ranking.
Exhibit 38: Amazon gains share as a shoe destination; It Girls still prefer Nordstrom and DSW
What is your favorite place to shop for shoes? Responses ranked by % choice. Chg indicates % choice differential Y/Y
1 Nordstrom 10% Amazon 13% Nike 10% Amazon 17% Amazon 14% Nike 14%
2 DSW 8% Nike 12% Amazon 10% Nike 15% Nike 11% Amazon 10%
3 Nike 8% Foot Locker 5% DSW 6% Foot Locker 8% DSW 6% Kohl’s 6%
4 Amazon 5% Kohl’s 5% Kohl’s 6% Adidas 7% Adidas 5% Foot Locker 6%
5 Macy’s 4% DSW 4% Payless 6% Walmart 4% Foot Locker 5% Payless 5%
6 Vans 3% Adidas 4% Walmart 4% Kohl’s 4% Kohl’s 4% Famous Footwear 4%
7 Adidas 3% Walmart 4% Famous Footwear 3% Dick’s 3% Walmart 4% Walmart 4%
8 Zappos.com 2% Payless 4% Macy’s 3% Finish Line 2% Payless 3% Dick’s 3%
9 Steve Madden 2% Famous Footwear 3% Nordstrom 3% Puma 2% Macy’s 2% Macy’s 3%
10 Foot Locker 2% Macy’s 2% Foot Locker 3% DSW 2% Nordstrom 2% Adidas 3%
11 Converse 2% Nordstrom 2% Adidas 2% Target 2% Target 2% DSW 3%
12 Payless 2% Target 2% Zappos.com 2% Famous Footwear 1% Skechers 2% Finish Line 3%
13 Target 2% Dick’s 2% Shoe Carnival 2% Macy’s 1% Famous Footwear 2% Nordstrom 3%
14 Aldo 2% Finish Line 1% Skechers 2% Ebay 1% Zappos.com 2% Vans 2%
15 Kohl’s 2% Zappos.com 1% Target 2% Nordstrom 1% Puma 1% JC Penney 1%
16 Famous Footwear 1% Skechers 1% Journeys 1% Payless 1% Ebay 1% Shoe Carnival 1%
17 Dillard’s 1% Shoe Carnival 1% Vans 1% Sears 1% Shoe Carnival 1% Target 1%
18 Marshall’s 1% Ebay 1% Finish Line 1% New Balance 1% New Balance 1% Zappos.com 1%
19 Journeys 1% Puma 1% Converse 1% Timberland 1% Nine West 1% Converse 1%
20 ASOS 1% Vans 1% Ebay 1% Clark’s 1% Sears 1% Shoe Dept. 1%
Top 3 26% 30% 26% 40% 31% 30%
3 September 2018
ATHLETIC BRANDS: Nike still dominant but other emergent brands gaining share
Nike unsurprisingly a leader across all cohorts. Nike remains the dominant player in the athletic market as a preferred
brand for all surveyed demographics. The brand enjoys a wide margin of leadership (20pts+ in every surveyed group), and
this year gained momentum with our It Girl, male and Gen Z cohorts.
Adidas, Under Armour, and Nike lead by a wide margin. Survey respondents largely prefer Nike, Under Armour, and
Adidas, with the collective preference for these brands increasing Y/Y in our national sample. Interestingly, the three occupy
even more dominant positions for Gen Z survey respondents. Preferences are more diverse among Millennials, Women, and
It Girls, who have higher relative affinity for Lululemon and other emerging brands.
New entrants and old favorites improve mind share. Adidas gained share across most groups this year, as did other
established players like Puma and Reebok. Athleta and Asics joined our top ranked list for our national sample survey
respondents, while Champion improved its performance. Alo Yoga, Gymshark, Zella, Aerie, and Outdoor Voices joined our top
list of preferred brands for It Girl respondents.
Exhibit 39: Nike still the preferred athletic preferred brand, but other brands narrowing the gap
What is your favorite athletic brand? Responses ranked by % choice. Chg indicates % choice differential Y/Y
2 Adidas 12% Under Armour 15% Under Armour 13% Under Armour 18% Adidas 14% Under Armour 20%
3 Lululemon 11% Adidas 12% Adidas 9% Adidas 16% Under Armour 13% Adidas 9%
4 Under Armour 6% Puma 3% Lululemon 4% Puma 3% Old Navy 3% Lululemon 3%
5 Victoria’s Secret 5% Lululemon 2% Old Navy 3% Reebok 2% Puma 3% Champion 2%
6 Fabletics 3% Champion 2% Victoria’s Secret 3% Champion 2% Lululemon 2% Puma 2%
7 Old Navy 3% Old Navy 2% Champion 2% Asics 1% Reebok 2% Victoria’s Secret 2%
8 Athleta 3% Reebok 2% Fabletics 2% Jordan’s 1% Champion 2% Fabletics 2%
9 Puma 2% Victoria’s Secret 2% Danskin 2% Old Navy 1% Victoria’s Secret 1% Danskin 1%
10 Champion 1% Fabletics 1% Puma 2% Walmart 1% Danskin 1% Reebok 1%
11 New Balance 1% Danskin 1% Reebok 2% Fabletics 1% Athleta 1%
12 Forever 21 1% Athleta 1% Athleta 1% Asics 1% Jordan’s 1%
13 Reebok 1% Asics 1% Fila 1% Athleta 1% Skechers 1%
14 Zella 1% New Balance 1% Forever 21 1%
15 Target 1% Target 1% New Balance 1%
16 Alo Yoga 1%
17 Gymshark 1%
18 Outdoor Voices 1%
19 C9 1%
20 Ivy Park 1%
Top 3 57% 69% 63% 78% 67% 74%
3 September 2018
ATHLETIC RETAILERS: Nike still preferred, but losing share to Amazon
Nike unique as a preferred brand and shopping destination. Consistent with its dominance as a favorite athletic brand,
our survey respondents prefer Nike as a retailer across all cohorts. We believe this leadership bodes well for competitive
positioning as the company enhances its DTC efforts through both online and in-store experiences in select markets.
Amazon gaining share in our national survey. Aside from It Girls, who remain more likely to shop through brand-specific
retail stores or multiline department store retailers for athletic gear, respondents in all other cohorts demonstrated a multiple
point increase in preference for Amazon this year.
Select multi-line retail share shifts worth watching. Nordstrom, Kohl’s, and T.J. Maxx gained momentum this year in our
national sample; Nordstrom and T.J. Maxx entered the top ten list for It Girl respondents. On the other hand, we saw
decelerating momentum for Macy’s and Target in both our national and It Girl cohorts. We believe this pattern is a result of
targeted active/athletic strategies from Nordstrom and Kohl’s, which have focused on enhancing their offering with select
well-known branded active players.
Exhibit 40: Our national survey suggests Amazon is gaining popularity, while It Girls still prefer branded stores and department stores
What is your favorite place to shop for athletic wear? Responses ranked by % choice. Chg indicates % choice differential Y/Y
2 Lululemon 9% Amazon 13% Amazon 11% Amazon 16% Amazon 14% Amazon 12%
3 Victoria’s Secret 6% Dick’s 7% Walmart 8% Dick’s 10% Walmart 7% Dick’s 11%
4 Adidas 6% Walmart 7% Kohl’s 6% Adidas 8% Adidas 6% Walmart 6%
5 Nordstrom 5% Adidas 6% Dick’s 5% Under Armour 6% Kohl’s 5% Under Armour 6%
6 Old Navy 4% Kohl’s 5% Target 4% Walmart 5% Dick’s 4% Kohl’s 6%
7 Fabletics 4% Under Armour 5% Under Armour 4% Foot Locker 4% Target 4% Adidas 4%
8 T.J.Maxx 3% Target 4% Adidas 4% Kohl’s 3% Under Armour 4% Foot Locker 3%
9 Target 3% Foot Locker 2% Old Navy 3% Target 3% Old Navy 3% JC Penney 3%
10 Amazon 3% Lululemon 2% Lululemon 3% Academy 2% T.J.Maxx 2% Macy’s 3%
11 Dick’s 3% Old Navy 2% T.J.Maxx 3% Ebay 2% Foot Locker 2% Target 3%
12 Athleta 3% Macy’s 2% Victoria’s Secret 2% Macy’s 2% Puma 2% Lululemon 2%
13 Kohl’s 2% T.J.Maxx 2% Macy’s 2% Puma 2% Lululemon 2% Academy 2%
14 Under Armour 2% JC Penney 1% JC Penney 2% JC Penney 1% Ebay 1% Victoria’s Secret 1%
15 Macy’s 2% Academy 1% Foot Locker 1% Champs 1% Victoria’s Secret 1% Nordstrom 1%
16 Walmart 2% Puma 1% Academy 1% Nordstrom 1% Academy 1% Ebay 1%
17 JC Penney 1% Victoria’s Secret 1% Fabletics 1% Macy’s 1% Hibbett Sports 1%
18 Academy 1% Ebay 1% Puma 1% Athleta 1% Old Navy 1%
19 Forever 21 1% Nordstrom 1% Athleta 1% Fabletics 1%
20 Marshall’s 1% Fabletics 1% Nordstrom 1% JC Penney 1%
Top 3 33% 39% 36% 46% 39% 42%
3 September 2018
LINGERIE BRANDS: Aerie gaining traction, but Victoria’s Secret still the market leader
Victoria’s Secret the clear leader, but other brands gaining momentum. Victoria’s Secret remains the decisive category
leader in lingerie and underwear, which retained a ~50pt affinity lead vs the #2 ranked brand across each cohort. That said,
the brand lost momentum among millennial women in our national sample and with our fashion-forward Conde Nast It Girl.
Aerie gaining significant traction among consumers. Aerie gained significant momentum Y/Y and rose in affinity across
every surveyed cohort. Within our It Girl sample, the brand gained 4pts of momentum and jumped to the #2 rank from #4
prior. We believe this is at least partly due to the brand’s inclusive message vs. peers.
Other notables include Hanes and Adore Me. Hanes retained its #2 rank among our national sample of women, where it
gained momentum in our Gen Z cohort but fell in affinity for millennial women. Adore Me rose in popularity among all
cohorts.
Exhibit 41: Victoria’s Secret popularity is fading while Aerie is gaining traction
What is your favorite lingerie brand? Responses ranked by % choice. Chg indicates % choice differential Y/Y
1 Victoria’s Secret 57% Victoria’s Secret 61% Victoria’s Secret 60% Victoria’s Secret 61%
2 Aerie 7% Hanes 8% Hanes 6% Hanes 13%
3 Calvin Klein 5% Aerie 3% Aerie 3% Aerie 3%
4 La Perla 2% Fruit of the Loom 2% Fruit of the Loom 2% Fruit of the Loom 2%
5 Hanes 2% Calvin Klein 1% Lane Bryant 2% Adore Me 2%
6 Adore Me 1% Lane Bryant 1% Calvin Klein 1% Calvin Klein 2%
7 Target 1% Adore Me 1% Soma 1% American Eagle 1%
8 Hanky Panky 1% Target 1% Torrid 1% Macy’s 1%
9 Natori 1% Torrid 1% Nike 1% Target 1%
10 Soma 1% Nike 1% Target 1%
11 Agent Provacateur 1% Soma 1%
12 Gap 1%
13 Torrid 1%
14 Cacique 1%
Top 3 70% 72% 70% 77%
3 September 2018
BEAUTY BRANDS: Multi-line specialty a favorite destination for branded product
We enhanced our survey this year to give more insight to the preferred brands of female consumers across several
subcategories, including skincare, haircare, color cosmetics, and fragrances. As a result, our results presented below do not
include Y/Y shifts in brand preference.
Skincare
Neutrogena leads in skincare. All cohorts of women prefer Neutrogena as their top skincare brand, with Aveeno, Olay, and
Clinique in close competition for rank #2-4. It Girls gravitate towards specialty brands Mario Badescu, Lush, and Kiehl’s.
Walmart a preferred destination for our national sample, while Sephora the clear favorite for It Girls. Preferences for
skincare retail were dramatically different between our It Girl and national sample cohorts, with Sephora garnering nearly 1/3
of It Girl responses but only ~10% in our national sample. Similarly, It Girls are much less likely to purchase skincare at mass
retailers Walmart and Target vs. peers, with the combined share of 11% well below our national sample’s 27%. Ulta is a clear
favorite among most survey respondents, while Amazon ranks in the top five for all cohorts.
Exhibit 42: Neutrogena is a clear favorite for branded skincare. It Girls prefer Sephora while our national sample gravitates towards Walmart.
What is your favorite skincare brand? What is your favorite place to shop for skincare?
SKINCARE BRAND SKINCARE RETAILER
Rank IT GIRLS WOMEN MILLENNIAL GEN Z Rank IT GIRLS WOMEN MILLENNIAL GEN Z
Brand % Brand % Brand % Brand % Brand % Brand % Brand % Brand %
1 Neutrogena 9% Neutrogena 11% Neutrogena 11% Neutrogena 13% 1 Sephora 28% Walmart 19% Walmart 19% Walmart 18%
2 Clinique 7% Olay 8% Aveeno 9% Olay 8% 2 Ulta 10% Amazon 11% Amazon 13% Sephora 11%
3 Olay 3% Aveeno 8% Olay 9% Aveeno 6% 3 Walmart 6% Ulta 9% Target 9% Ulta 10%
4 Aveeno 3% Clinique 5% Dove 6% Clinique 5% 4 Target 5% Sephora 9% Ulta 9% Amazon 9%
5 Lush 3% Dove 5% Clinique 5% Clean & Clear 4% 5 Amazon 4% Target 8% Sephora 8% Target 5%
6 Mario Badesco 3% L’OrØal Paris 3% L’OrØal Paris 4% Dove 3% 6 Clinique 3% Macy’s 4% Macy’s 3% Macy’s 4%
7 Kiehl’s 2% Nivea 3% Cetaphil 3% L’OrØal Paris 3% 7 Lush 3% Walgreen’s 3% Walgreen’s 2% Walgreen’s 4%
8 Fresh 2% Cetaphil 2% Nivea 3% Sephora 3% 8 Nordstrom 2% Bath & Body Works 2% Bath & Body Works 2% CVS 3%
9 Cetaphil 2% Clean & Clear 2% Bath & Body Works 2% Nivea 3% 9 Neutrogena 2% CVS 2% Avon 2% Bath & Body Works 2%
10 L’OrØal Paris 2% Bath & Body Works 2% BiorØ 2% Bath & Body Works 2% 10 CVS 2% Avon 2% CVS 2% Neutrogena 2%
11 BiorØ 2% BiorØ 2% Avon 2% Noxzema 2% 11 Macy’s 2% Aveeno 1% Aveeno 1% Aveeno 2%
12 Glossier 2% Avon 2% Clean & Clear 1% Proactiv 2% 12 Glossier 2% Neutrogena 1% MAC 1% Avon 2%
13 Origins 2% Proactiv 2% Garnier Skincare 1% Ulta 2% 13 Walgreen’s 1% Olay 1% Olay 1% Bloomingdale’s 1%
14 Drunk Elephant 1% Sephora 2% Mary Kay 1% BiorØ 2% 14 Kiehl’s 1% MAC 1% Cetaphil 1% Clarins 1%
15 Clean & Clear 1% Garnier Skincare 1% Jergens 1% Avon 2% 15 The Body Shop 1% Nordstrom 1% Clinique 1% Lush 1%
16 Dermalogica 1% Kiehl’s 1% Kiehl’s 1% Burt’s Bees 2% 16 Fresh 1% Cetaphil 1% Dove 1% Mario Badesco 1%
17 Dove 1% Mary Kay 1% MAC 1% Cetaphil 2% 17 Olay 1% Clinique 1% Nivea 1% Mary Kay 1%
18 Philosophy 1% Burt’s Bees 1% Proactiv 1% Garnier Skincare 2% 18 Dermstore 1% Dove 1% Nordstrom 1% Nordstrom 1%
19 Cerave 1% Jergens 1% St. Ives 1% Kiehl’s 2% 19 Dove 1% Mary Kay 1% Elf 1% Olay 1%
20 Burt’s Bees 1% Lancôme 1% Burt’s Bees 1% Clearasil 1% 20 Mario Badesco 1% Nivea 1% Kiehl’s 1% Rite Aid 1%
Top 3 20% 28% 28% 26% Top 3 44% 40% 41% 38%
3 September 2018
Haircare
Pantene a favorite brand among our national sample; no clear consensus among It Girls. Our national sample of
women preferred Pantene and to some extent Suave and Dove as their haircare brand of choice, while no brand registered
>5% affinity among It Girls. Brand affinity concentration for It Girls within haircare was significantly lighter than our national
sample, and we note a particularly wide tail of brands registering at the ~1-2% level in our sample across both specialty and
mass.
Preference for mass retailers and Amazon among our national sample. Our national survey respondents demonstrated a
clear preference for purchasing haircare products at mass retail channels (Walmart/Target) and at Amazon, with Millennial /
Gen Z women indicating 46% / 40% affinity for these retailers. Walmart was the clear favorite at 22% for all three cohorts,
with Amazon hot on its heels with low double digit share.
Ulta the favorite destination for It Girls. Ulta ranked #1 for It Girls as a preferred haircare retailer, outstripping Sephora and
garnering 16% affinity. The retailer consistently ranked #3-4 across our other cohorts.
Exhibit 43: No clear It Girl favorite haircare brand, while our national sample prefers Pantene. Ulta and Sephora the clear It Girl shopping destinations for haircare while our national
sample prefers Walmart and Amazon.
What is your favorite haircare brand? What is your favorite place to shop for haircare?
HAIRCARE BRAND HAIRCARE RETAILER
1 Garnier Haircare 5% Pantene 10% Pantene 10% Suave 11% 1 Ulta 16% Walmart 22% Walmart 22% Walmart 22%
2 Pantene 5% Suave 8% Dove 8% Pantene 10% 2 Sephora 13% Amazon 12% Amazon 13% Amazon 10%
3 TRESemme 4% Dove 7% Suave 6% TRESemme 10% 3 Target 11% Target 10% Target 11% Ulta 9%
4 L’OrØal Paris 4% TRESemme 7% Garnier Haircare 6% Dove 6% 4 Walmart 8% Ulta 10% Ulta 10% Target 8%
5 Shea Moisture 4% Garnier Haircare 6% TRESemme 6% Garnier Haircare 6% 5 Amazon 7% CVS 3% Sephora 3% CVS 4%
6 OGX 3% Herbal Essences 5% L’OrØal Paris 5% Herbal Essences 6% 6 Sally Beauty 4% Sephora 3% CVS 3% Sally Beauty 4%
7 Redken 3% L’OrØal Paris 5% Herbal Essences 5% L’OrØal Paris 5% 7 CVS 3% Sally Beauty 3% Sally Beauty 2% Walgreen’s 4%
8 Aveda 3% Aussie 3% Shea Moisture 3% Aussie 3% 8 Walgreen’s 2% Walgreen’s 3% Walgreen’s 2% Sephora 3%
9 Herbal Essences 3% Shea Moisture 3% Aussie 3% Paul Mitchell 2% 9 Lush 2% Pantene 2% Pantene 2% L’OrØal Paris 2%
10 Bumble and Bumble 2% Paul Mitchell 2% Paul Mitchell 3% Redken 2% 10 Nordstrom 1% Macy’s 2% Macy’s 2% Macy’s 1%
11 Oribe 2% Redken 2% Redken 3% Shea Moisture 2% 11 Aveda 1% L’OrØal Paris 1% Dove 1% Pantene 1%
12 Paul Mitchell 2% Biolage 1% OGX 2% V05/Alberto V05 2% 12 L’OrØal Paris 1% Suave 1% Suave 1% Suave 1%
13 Living Proof 2% John Frieda 1% John Frieda 2% Biolage 1% 13 Pantene 1% Dove 1% L’OrØal Paris 1% Biolage 1%
14 Lush 2% OGX 1% Biolage 1% Head & Shoulder’s 1% 14 Birchbox 1% Garnier Skincare 1% TRESemme 1% Garnier Skincare 1%
15 Cantu 2% Head & Shoulder’s 1% Head & Shoulder’s 1% Matrix 1% 15 Cantu 1% Kroger 1% Garnier Skincare 1% Gucci 1%
16 Dove 2% Cantu 1% Nexxus 1% Aveeno 1% 16 Shea Moisture 1% Nordstrom 1% Kroger 1% Kroger 1%
17 Suave 2% Matrix 1% Cantu 1% Cantu 1% 17 Bumble and Bumble 1% TRESemme 1% Nordstrom 1% Nordstrom 1%
18 Ouai 2% Nexxus 1% Not Your Mother’s 1% Olay 1% 18 Devacurl 1% Paul Mitchell 1% Shea Moisture 1% Paul Mitchell 1%
19 Aussie 2% Not Your Mother’s 1% Revlon 1% Aveda 1% 19 Living Proof 1% T.J.Maxx 1% Rite Aid 1%
20 Devacurl 1% V05/Alberto V05 1% Matrix 1% Bumble and Bumble 1% 20 OGX 1%
Top 3 14% 25% 24% 31% Top 3 39% 44% 46% 40%
3 September 2018
Color Cosmetics
MAC a leading brand across all cohorts, with L’Oreal Paris and Maybelline close contenders. Our national sample
showed a clear preference for MAC, L’Oreal Paris, and Maybelline cosmetics. Millennial women largely preferred MAC while
our Gen Z sample showed a preference for Maybelline. It Girls ranked MAC #2. We note MAC was the favorite overall beauty
brand in last year’s survey which did not differentiate between cosmetics, haircare, and skincare. L’Oreal’s Urban Decay was
the preferred brand for It Girls.
Too Faced emerges as a favorite within the national sample. Too Faced ranked in the top five brands among It Girls and
made the top twenty list among our national sample, signaling its upward momentum following EL’s acquisition a few years
ago. EL’s Bobbi Brown brand also appeared among the national favorites but surprisingly did not make the top 20 list for It
Girls this year.
Retailer affinity results suggest ongoing shift towards specialty multi-brand platforms. Both our It Girl sample and our
Gen Z sample preferred Sephora and Ulta as their top destination to purchase cosmetics. We note 55% penetration of these
two retailers among It Girls and 29% penetration among Gen Z respondents. Walmart and Amazon also rank favorably
among our national sample.
Exhibit 44: MAC a leading cosmetics brand across all cohorts. Walmart, Sephora, and ULTA the top destinations to shop the category.
What is your favorite color cosmetics brand? What is your favorite place to shop for color cosmetics?
COLOR COSMETICS BRAND COLOR COSMETICS RETAILER
1 Urban Decay 10% MAC 10% MAC 11% Maybelline 10% 1 Sephora 38% Walmart 14% Walmart 14% Ulta 15%
2 MAC 8% L’OrØal Paris 9% L’OrØal Paris 10% L’OrØal Paris 8% 2 Ulta 17% Ulta 14% Ulta 13% Sephora 14%
3 Tarte 6% Maybelline 8% CoverGirl 8% MAC 8% 3 Target 4% Sephora 13% Sephora 13% Walmart 14%
4 L’OrØal Paris 4% CoverGirl 7% Maybelline 6% Urban Decay 6% 4 MAC 3% Amazon 10% Amazon 10% Amazon 11%
5 Too Faced 4% Revlon 6% Revlon 6% CoverGirl 6% 5 Nordstrom 3% Target 6% Target 7% Target 5%
6 Nars 4% Urban Decay 5% Urban Decay 5% Revlon 5% 6 Walmart 3% Macy’s 3% MAC 3% CVS 3%
7 Sephora 4% Elf 3% NYX 4% Elf 4% 7 Amazon 2% CVS 3% Macy’s 3% Walgreen’s 3%
8 NYX 4% Tarte 3% Tarte 3% Sephora 4% 8 Macy’s 1% MAC 3% CVS 2% Macy’s 2%
9 Anastasia 3% NYX 3% Elf 3% Clinique 3% 9 L’OrØal Paris 1% Walgreen’s 2% Walgreen’s 2% Bobbi Brown 1%
10 Clinique 3% Sephora 3% Bare Minerals 2% Tarte 3% 10 Tarte 1% Maybelline 1% Sally Beauty 2% Gucci 1%
11 Colour Pop 3% Clinique 2% Sephora 2% Morphe 2% 11 Too Faced 1% Sally Beauty 1% Maybelline 1% MAC 1%
12 Bare Minerals 3% Bare Minerals 2% Too Faced 2% Avon 2% 12 Urban Decay 1% Nordstrom 1% Nordstrom 1% Maybelline 1%
13 Fenty/Fenty Beauty 3% Too Faced 2% Ulta 2% Bobbi Brown 2% 13 Colour Pop 1% Avon 1% Revlon 1% Avon 1%
14 Maybelline 2% Ulta 2% Avon 1% NYX 2% 14 CVS 1% Revlon 1% Avon 1% CoverGirl 1%
15 Kat Von D 2% Avon 2% Clinique 1% Ulta 2% 15 NYX 1% L’OrØal Paris 1% Tarte 1% L’OrØal Paris 1%
16 Elf 2% Morphe 1% EstØe Lauder 1% Bare Minerals 1% 16 Sally Beauty 1% CoverGirl 1% Bare Minerals 1% Nordstrom 1%
17 Revlon 2% Bobbi Brown 1% Neutrogena 1% IT Cosmetics 1% 17 Chanel 1% Tarte 1% L’OrØal Paris 1% Rite Aid 1%
18 Benefit 1% Wet n Wild 1% Wet n Wild 1% Olay 1% 18 Clinique 1% Urban Decay 1% Too Faced 1% Sally Beauty 1%
19 Chanel 1% Benefit 1% Almay 1% Bare Escentuals 1% 19 Glossier 1% Bare Minerals 1% Urban Decay 1%
20 CoverGirl 1% EstØe Lauder 1% Benefit 1% Benefit 1% 20 Nars 1% Bloomingdale’s 1% Bloomingdale’s 1%
Top 3 24% 27% 29% 25% Top 3 59% 41% 40% 43%
3 September 2018
Fragrance Brands
Bath & Body Works and Victoria’s Secret popular. Across both our It Girl and national population of women, Bath & Body
Works and Victoria’s Secret emerged as leaders for fragrance brands. We believe this affinity is enhanced by the retailers
offering a variety of scents in a range of sizes and at an accessible price point. Our survey of national men showed an affinity
for Axe, Calvin Klein, and Polo; all of these brands offer a variety of scents for the consumer.
Preference concentration for fragrance similar to color cosmetics despite more limited depth of product offering.
Outside of national brands such as Bath & Body Works, Victoria’s Secret, Axe, and Old Spice, few of the brands identified in
our survey have a deep bench of product offering, yet the brand preference concentration across all of our surveyed cohorts
indicates a preference similar in concentration to cosmetics and skincare and even more penetrated than haircare. We found
this surprising given the number of choices at the fragrance counter for well-known brands.
Exhibit 45: Our national sample of women indicates a preference for Bath & Body Works, while It Girls gravitate towards Chanel, and men in our national sample prefer Axe.
What is your favorite fragrance brand?

Brand % Brand % Brand % Brand % Brand % Brand %
1 Chanel 10% Bath & Body Works 9% Bath & Body Works 15% Axe 11% Victoria’s Secret 9% Bath & Body Works 12%
2 Marc Jacobs 8% Victoria’s Secret 8% Victoria’s Secret 13% Calvin Klein 8% Bath & Body Works 7% Axe 9%
3 Victoria’s Secret 8% Chanel 5% Chanel 7% Polo 7% Chanel 6% Victoria’s Secret 7%
4 Bath & Body Works 6% Calvin Klein 5% Juicy Couture 4% Boss/Hugo Boss 5% Calvin Klein 5% Polo 5%
5 Juicy Couture 5% Axe 5% Calvin Klein 3% Old Spice 5% Dolce & Gabbana 3% Chanel 5%
6 Dolce & Gabbana 3% Polo 3% Dior Cosmetics 3% Adidas 4% Adidas 3% Calvin Klein 4%
7 Gucci 3% Boss/Hugo Boss 2% Gucci 3% Giorgio Armani 3% Boss/Hugo Boss 3% Old Spice 3%
8 Saint Laurent/YSL 3% Dolce & Gabbana 2% Marc Jacobs 2% Chanel 3% Dior Cosmetics 3% Juicy Couture 2%
9 Dior Cosmetics 2% Juicy Couture 2% Dolce & Gabbana 2% Dolce & Gabbana 3% Giorgio Armani 2% Gucci 2%
10 Burberry 2% Adidas 2% Clinique 2% Nike 2% Juicy Couture 2% Boss/Hugo Boss 1%
11 Calvin Klein 2% Dior Cosmetics 2% Burberry 2% Carolina Herrera 2% Gucci 2% Ralph Lauren 1%
12 Versace 2% Gucci 2% Ralph Lauren 1% Ralph Lauren 2% Polo 2% Coach 1%
13 ChloØ 2% Old Spice 2% Vera Wang 1% Burberry 1% Burberry 2% Marc Jacobs 1%
14 Ralph Lauren 2% Giorgio Armani 2% Avon 1% Dior Cosmetics 1% Axe 2% Tommy Hilfiger 1%
15 Clinique 1% Ralph Lauren 2% EstØe Lauder 1% Gucci 1% Marc Jacobs 2% Adidas 1%
16 Jo Malone 1% Burberry 1% Coach 1% Liz Claiborne 1% Ralph Lauren 2% Dior Cosmetics 1%
17 Elizabeth and James 1% Marc Jacobs 1% Donna Karan/DKNY 1% Paco Rabanne 1% Carolina Herrera 1% Dolce & Gabbana 1%
18 Prada 1% Clinique 1% Polo 1% Tommy Hilfiger 1% Clinique 1% Versace 1%
19 Giorgio Armani 1% Tommy Hilfiger 1% Prada 1% Nautica 1% Nike 1% Avon 1%
20 Le Labo 1% Avon 1% Tommy Hilfiger 1% Abercrombie & Fitch 1% Avon 1% Ed Hardy 1%
Top 3 26% 22% 35% 26% 21% 29%
3 September 2018
Fragrance Retailers
Our national sample prefers Amazon and Macy’s. Both men and women in our national survey across all age and gender
groups listed Amazon and Macy’s in the top five retailers for fragrances. We were surprised to see Amazon make the list
ahead of Ulta and Sephora for women in our national sample, particularly given the sensorial nature of a fragrance product
that makes it difficult to clearly describe online. Macy’s emerged as the top ranked destination for Gen Z.
Men prefer Amazon. Similar to other categories discussed above, men prefer Amazon when purchasing fragrances. Given
their higher affinity for mass product brand lines (such as Axe and Old Spice, which ranked #1 and #5, respectively), we
believe this preference is driven by replenishment rather than product discovery.
It Girls prefer multi-line specialty retail. Sephora and Ulta garnered the majority of the It Girl fragrance retailer vote, with
Sephora the clear category leader among our sample set.
Exhibit 46: Amazon and Macy’s top the list for preferred fragrance retailers in our national sample, but Sephora and Ulta the preferred destination for It Girls.
What is your favorite place to shop for fragrances?

1 Sephora 25% Amazon 15% Bath & Body Works 13% Amazon 22% Amazon 16% Macy’s 13%
2 Ulta 10% Macy’s 11% Macy’s 11% Macy’s 12% Macy’s 10% Amazon 13%
3 Macy’s 9% Walmart 9% Victoria’s Secret 11% Walmart 12% Walmart 8% Bath & Body Works 11%
4 Victoria’s Secret 7% Bath & Body Works 8% Amazon 10% Adidas 3% Victoria’s Secret 7% Walmart 10%
5 Bath & Body Works 6% Victoria’s Secret 7% Walmart 7% Kohl’s 3% Bath & Body Works 6% Victoria’s Secret 6%
6 Nordstrom 5% Sephora 4% Ulta 6% Target 3% Sephora 5% Target 3%
7 Amazon 4% Ulta 4% Sephora 6% Nike 2% Ulta 4% Ulta 3%
8 Chanel 3% Kohl’s 3% Nordstrom 3% Boss/Hugo Boss 2% Kohl’s 3% Sephora 3%
9 Dillard’s 2% Target 2% Kohl’s 2% Polo 2% Adidas 2% Kohl’s 3%
10 Walmart 2% Nordstrom 2% Target 2% Calvin Klein 1% Target 2% Nordstrom 2%
11 Gucci 1% Adidas 1% Christian Dior 2% Carolina Herrera 1% Nordstrom 2% Walgreen’s 2%
12 Marc Jacobs 1% Ebay 1% Walgreen’s 1% Ebay 1% Calvin Klein 1% CVS 1%
13 Juicy Couture 1% Calvin Klein 1% Avon 1% Sephora 1% Ebay 1% Dillard’s 1%
14 Le Labo 1% Avon 1% Ebay 1% Avon 1% Avon 1% Ebay 1%
15 Christian Dior 1% Christian Dior 1% Calvin Klein 1% Chanel 1% Christian Dior 1% Polo 1%
16 Marshall’s 1% Nike 1% JC Penney 1% Sears 1% Nike 1% Avon 1%
17 T.J.Maxx 1% Walgreen’s 1% Belk 1% Abercrombie & Fitch 1% Boss/Hugo Boss 1% Calvin Klein 1%
18 Versace 1% JC Penney 1% Dillard’s 1% Axe 1% Carolina Herrera 1% Chanel 1%
19 Bloomingdale’s 1% Boss/Hugo Boss 1% Chanel 1% CVS 1% JC Penney 1% Christian Dior 1%
20 Burberry 1% Chanel 1% Gucci 1% Dillard’s 1% Sears 1% Gucci 1%
Top 3 44% 35% 35% 46% 34% 37%
3 September 2018
LUXURY/PREMIUM BRANDS: Gucci rises above the rest
Gucci a clear favorite across most cohorts. Both It Girls and our national sample identified Gucci as their favorite luxury
brand. This brand scored favorably in other categories, where it ranked in the top 5 for handbag brands across all cohorts and
a top ten shoe brand for Gen Z.
Coach favorability diverges between It Girls/national cohort. Our national survey sample placed Coach as a top brand
across all cohorts, but the brand fell behind peers Kate Spade and Michael Kors among It Girls. This is contrasted by the
strong performance of Kate Spade in our It Girl sample versus lower rank in our national sample of women.
Gucci and Louis Vuitton the top luxury houses identified in our survey. Both It Girls and our national sample of men and
women identified Gucci, Chanel, and Louis Vuitton as their top international luxury houses. Chanel scored favorably among
women and It Girls, while men’s luxury preferences skewed towards sportswear (Nike/Adidas/Polo).
Exhibit 47: Gucci is the preferred luxury brand across most cohorts, while Coach and Michael Kors score favorably in our national sample
What is your favorite luxury/premium brand?

1 Gucci 13% Gucci 10% Michael Kors 12% Gucci 11% Gucci 9% Gucci 12%
2 Chanel 11% Coach 8% Coach 12% Nike 6% Coach 8% Coach 9%
3 Louis Vuitton 8% Michael Kors 8% Gucci 10% Adidas 5% Michael Kors 8% Michael Kors 9%
4 Kate Spade 5% Chanel 4% Chanel 6% Coach 3% Chanel 5% Louis Vuitton 4%
5 Michael Kors 3% Louis Vuitton 4% Louis Vuitton 5% Polo 3% Louis Vuitton 4% Nike 4%
6 Burberry 3% Nike 3% Prada 3% Louis Vuitton 3% Nike 3% Ralph Lauren 4%
7 Christian Dior 3% Prada 3% Kate Spade 3% Calvin Klein 3% Adidas 3% Chanel 3%
8 Saint Laurent/YSL 3% Adidas 2% Calvin Klein 2% Ralph Lauren 3% Prada 2% Polo 3%
9 Coach 3% Calvin Klein 2% Ralph Lauren 2% Michael Kors 2% Calvin Klein 2% Prada 3%
10 Marc Jacobs 3% Ralph Lauren 2% Christian Dior 1% Rolex 2% Kate Spade 2% Apple 2%
11 Calvin Klein 2% Kate Spade 2% Victoria’s Secret 1% Apple 2% Rolex 2% Calvin Klein 2%
12 Prada 2% Polo 1% Nike 1% Chanel 2% Versace 2% Giorgio Armani 2%
13 Giorgio Armani 2% Versace 1% Burberry 1% Versace 2% Christian Dior 1% Guess 2%
14 Ralph Lauren 2% Apple 1% Carolina Herrera 1% Puma 2% Old Navy 1% Kate Spade 2%
15 Versace 2% Rolex 1% Versace 1% Boss/Hugo Boss 1% Puma 1% Levi’s 1%
16 Dolce & Gabbana 1% Christian Dior 1% Apple 1% Giorgio Armani 1% Ralph Lauren 1% Under Armour 1%
17 Tom Ford 1% Giorgio Armani 1% Donna Karan/DKNY 1% Old Navy 1% Apple 1% Versace 1%
18 Valentino 1% Burberry 1% Fendi 1% Prada 1% Burberry 1% Abercrombie & Fitch 1%
19 Alexander McQueen 1% Puma 1% Tommy Hilfiger 1% Under Armour 1% Carolina Herrera 1% Donna Karan/DKNY 1%
20 Fendi 1% Victoria’s Secret 1% Dolce & Gabbana 1% Amazon 1% Dolce & Gabbana 1% Tommy Hilfiger 1%
Top 3 33% 27% 35% 21% 25% 30%
3 September 2018
LUXURY/PREMIUM RETAILERS: Nordstrom makes a strong showing among It Girls
Nordstrom the favorite destination for luxury for It Girls. Nordstrom led the luxury retail category by a wide margin
among our It Girl survey respondents. The retailer also ranked in the top 3 among our other sample sets, where we note
stronger affinity for the retailer among Millennials vs. Gen Z. We believe this could be a factor of age/income, as Nordstrom’s
luxury offering tends to skew to a higher price point than Macy’s.
Macy’s a top contender for luxury. The retailer generated low double digit affinity among our national sample and for our
national survey of women, with particularly high affinity among our Gen Z correspondents.
Amazon a preferred luxury destination. Our national sample respondents ranked Amazon #1 as a favorite luxury shopping
destination, while our Conde Nast respondents listed the retailer as #5. What’s surprising is that few of the top luxury brands
identified in our survey sell directly to Amazon. These customers must be purchasing items through third party sellers.
Exhibit 48: Nordstrom a favorite for It Girls, while our national sample prefers to buy from Amazon
What is your favorite place to shop for luxury and premium brands?

1 Nordstrom 15% Amazon 17% Amazon 12% Amazon 22% Amazon 17% Macy’s 17%
2 Gucci 7% Macy’s 10% Macy’s 11% Macy’s 8% Nordstrom 7% Amazon 16%
3 Macy’s 5% Nordstrom 6% Nordstrom 8% Nike 4% Macy’s 6% Nordstrom 6%
4 Sephora 5% Gucci 4% Coach 6% Gucci 4% Walmart 5% Gucci 5%
5 Amazon 4% Walmart 4% Michael Kors 5% Adidas 4% Gucci 3% Coach 4%
6 Coach 4% Coach 3% Walmart 4% Ebay 4% Ebay 3% Michael Kors 3%
7 Louis Vuitton 4% Michael Kors 3% Gucci 4% Walmart 4% Chanel 3% Walmart 3%
8 Saks Fifth Avenue 4% Ebay 3% Chanel 3% Nordstrom 3% Coach 3% Kohl’s 3%
9 Chanel 3% Chanel 2% Ebay 2% Kohl’s 3% Michael Kors 3% Ebay 2%
10 Michael Kors 3% Kohl’s 2% T.J.Maxx 2% Target 2% Adidas 3% Bloomingdale’s 2%
11 Neiman Marcus 3% Nike 2% Bloomingdale’s 1% Calvin Klein 2% Nike 3% T.J.Maxx 1%
12 Bloomingdale’s 2% Adidas 2% JC Penney 1% Chanel 2% Kohl’s 2% Victoria’s Secret 1%
13 Dillard’s 2% Target 1% Kohl’s 1% Gap 1% Target 2% Chanel 1%
14 T.J.Maxx 2% T.J.Maxx 1% Victoria’s Secret 1% Giorgio Armani 1% Calvin Klein 1% JC Penney 1%
15 Net-A-Porter.com 1% JC Penney 1% Kate Spade 1% JC Penney 1% JC Penney 1% Marshall’s 1%
16 Kate Spade 1% Bloomingdale’s 1% Belk 1% Michael Kors 1% T.J.Maxx 1% Polo 1%
17 Burlington 1% Calvin Klein 1% Carolina Herrera 1% Polo 1% Kate Spade 1% Target 1%
18 Calvin Klein 1% Victoria’s Secret 1% Dillard’s 1% Puma 1% Carolina Herrera 1% Apple 1%
19 Marc Jacobs 1% Gap 1% Neiman Marcus 1% AEO 1% Gap 1% Belk 1%
20 Barneys New York 1% Kate Spade 1% Saks Fifth Avenue 1% Apple 1% Louis Vuitton 1% Dillard’s 1%
Top 3 28% 33% 32% 34% 29% 39%
3 September 2018
A FOCUS ON MEN: Mass brands preferred, purchased through mass channels
Hanes preferred for underwear; Axe/Gillette still top choice for grooming. Hanes leads with 31% of men in our national
sample choosing the brand as their favorite brand. Fruit of the Loom and Calvin Klein registered as strong #2 and #3. Axe and
Gillette retained the top two slots in grooming this year, though Axe gained share and rose to the top slot. Harry’s joined the
list of favorites this year.
Sportswear brands lead as bag brands. Nike and Adidas took the top slots for bags this year. Coach again was the top
fashion brand for the category.
Amazon and Walmart the top destinations for both grooming and bags. Similar to other categories discussed above,
men prefer Walmart and Amazon for purchases vs. other multi-line or multi-branded retailers.
Exhibit 49: Our national survey of men preferred Hanes, Axe, and Nike for underwear, grooming, and bags, respectively. Walmart and Amazon are their preferred shopping destinations.
What is your favorite brand in each of the following categories: underwear; briefcases; bags, briefcases, and wallets? What is your favorite place to purchase: grooming products; bags, briefcases, and
wallets? Responses show national sample results only.
MEN’S PREFERRED BRANDS MEN’S PREFERRED RETAILER

Rank Underwear Grooming Bags, Briefcases, Wallets Rank Grooming Bags, Briefcases, Wallets
Brand % Chg Brand % Chg Brand % Chg Brand % Chg Brand % Chg
1 Hanes 31% Axe 18% Nike 11% 1 Walmart 21% Amazon 24%
2 Fruit of the Loom 12% Gillette 11% Adidas 7% 2 Amazon 20% Walmart 10%
3 Calvin Klein 10% Dove 5% Coach 6% 3 Target 9% Macy’s 7%
4 Nike 5% Old Spice 5% Gucci 5% 4 Nike 3% Kohl’s 5%
5 Adidas 4% Adidas 3% Michael Kors 4% 5 Macy’s 3% Nike 5%
6 Under Armour 4% Nike 3% Fossil 3% 6 Adidas 2% Adidas 4%
7 Jockey 3% Nivea 2% Gap 2% 7 Walgreen’s 2% Target 3%
8 Tommy Hilfiger 2% Suave 2% Prada 2% 8 CVS 2% Ebay 2%
9 Polo 2% Wahl 2% Carolina Herrera 2% 9 Dove 2% Coach 2%
10 American Eagle 1% Philips Norelco 2% Levi’s 2% 10 Axe 2% Fossil 2%
11 Old Navy 1% American Crew 2% Louis Vuitton 2% 11 Ebay 2% JC Penney 2%
12 Puma 1% L’OrØal Paris 1% Old Navy 2% 12 Dollar Shave Club 1% Gucci 1%
13 Ralph Lauren 1% Amazon 1% Polo 2% 13 Gillette 1% Michael Kors 1%
14 Victoria’s Secret 1% Aveeno 1% Walmart 2% 14 Sears 1% Nordstrom 1%
15 Walmart 1% Dollar Shave Club 1% Calvin Klein 1% 15 Kohl’s 1% T.J.Maxx 1%
16 Amazon 1% Polo 1% Chanel 1% 16 Nordstrom 1% Calvin Klein 1%
17 Champion 1% Garnier Haircare 1% Tumi 1% 17 Ulta 1% Carolina Herrera 1%
18 Reebok 1% Harry’s 1% Under Armour 1% 18 Puma 1% Gap 1%
19 Old Navy 1% Zara 1% 19 Levi’s 1%
20 Paul Mitchell 1% North Face 1% 20 Louis Vuitton 1%
Top 3 53% 34% 24% Top 3 51% 41%
3 September 2018
THE FASHION FORWARD MAN: Less athletic focus and more likely to shop a variety of retailers
The fashion-forward man. This year, we introduce a list of top brands and retailers among the men in our Conde Nast
sample. While we note a smaller sample size among this data set vs. our Conde Nast It Girl, we believe the differences in
affinity when comparing the Conde Nast man and our nationwide sample provides insight into emerging brands.
Both groups of men prefer Amazon for basics. Our samples of both the Conde Nast man and the national sample of men
revealed a preference for shopping Amazon, which was a top #4 retailer in every category. The CN man showed a higher
affinity for Nordstrom in several categories, particularly in bags, shoes, fragrance, and luxury, where our national sample of
men was more likely to select Macy’s as a preferred department store retailer.
Athletic brands less dominant among fashion-forward men. Relative to our national sample, our survey of CN men
revealed a preference for fashion brands over athletic and specialty brands over mass. Outside of Gucci, we saw limited
overlap in preferred bag/briefcase/wallet and luxury brands between the samples.
n Underwear: Calvin Klein emerged as a clear leader among the fashion-forward sample, overtaking both Hanes and Fruit
of the Loom which had scored favorably in our national sample. Both target demographics prefer Amazon as a
destination, although our national sample is more likely to shop at Walmart for the product.
n Grooming: Kiehl’s and Dove were the most favored brands among our sample of CN men, and we note Axe was not
among the top grooming brands for our fashion-forward sample. We note higher fragmentation of preferences in this
sample vs our national sample, with the top 3 only accounting for 24% affinity vs. 34% for mainstream men.
n Bags, briefcases, and wallets: Our national sample skews towards functional athletic bags from brands such as Nike
and Adidas, purchased at Amazon and Walmart, while our CN man is more likely to purchase fashion brands Coach and
Herschel and added Nordstrom to the preferred retailer list.
n Clothing: J. Crew, H&M, and Polo were favorites among our CN sample while mainstream men preferred athletic brands
and Old Navy.
n Fragrance: Men in our national sample were more likely to select mass brands such as Axe and Old Spice for their
preferred fragrance brand, while the CN sample skewed towards luxury fragrance brands such as Burberry, Chanel, and
Giorgio Armani. Macy’s is a key fragrance destination for both samples.
3 September 2018
Exhibit 50: Our sample of fashion forward men preferred specialty brands to mass and were less likely to list an athletic brand as their top choice in several categories. Amazon is a key
shopping destination for men in both samples.
What is your favorite brand in each category? What is your favorite place to shop for each category? Preferences ranked #1-5 for our Conde Nast male (LHS) and male respondents from our national
sample (RHS)
CONDE MEN’S PREFERRED BRANDS NATIONAL SAMPLE MEN’S PREFERRED BRANDS
Rank Underwear Grooming Bags, Briefcases, Wallets Shoes Rank Underwear Grooming Bags, Briefcases, Wallets Shoes
1 Calvin Klein 23% Kiehl’s 10% Coach 8% Nike 26% 1 Hanes 31% Axe 18% Nike 11% Nike 42%
2 Hanes 16% Dove 8% Herschel 8% Adidas 11% 2 Fruit of the Loom 12% Gillette 11% Adidas 7% Adidas 15%
3 Fruit of the Loom 8% Gillette 6% Fossil 7% Cole Haan 6% 3 Calvin Klein 10% Dove 5% Coach 6% New Balance 4%
4 Jockey 5% Old Spice 5% Louis Vuitton 5% New Balance 4% 4 Nike 5% Old Spice 5% Gucci 5% Jordan’s 3%
5 American Eagle 3% American Crew 4% Gucci 4% Vans 4% 5 Adidas 4% Adidas 3% Michael Kors 4% Puma 3%
Rank Clothing Athletic Fragrance Luxury Rank Clothing Athletic Fragrance Luxury
1 J.Crew 14% Nike 45% Polo 9% Gucci 14% 1 Nike 21% Nike 44% Axe 11% Gucci 11%
2 Levi’s 8% Adidas 15% Burberry 6% Tom Ford 5% 2 Adidas 8% Under Armour 18% Calvin Klein 8% Nike 6%
3 Nike 6% Under Armour 12% Calvin Klein 6% Louis Vuitton 5% 3 Levi’s 6% Adidas 16% Polo 7% Adidas 5%
4 H&M 4% Lululemon 5% Chanel 5% Rolex 5% 4 Under Armour 5% Puma 3% Boss/Hugo Boss 5% Coach 3%
5 Polo 4% Puma 3% Giorgio Armani 5% Giorgio Armani 4% 5 Old Navy 4% Reebok 2% Old Spice 5% Polo 3%
CONDE MEN’S PREFERRED RETAILERS NATIONAL SAMPLE MEN’S PREFERRED RETAILERS

Rank Underwear Grooming Bags, Briefcases, Wallets Shoes Rank Underwear Grooming Bags, Briefcases, Wallets Shoes
1 Amazon 17% Amazon 19% Amazon 19% Nike 11% 1 Walmart 23% Walmart 21% Amazon 24% Amazon 17%
2 Target 9% Target 8% Nordstrom 7% Nordstrom 9% 2 Amazon 18% Amazon 20% Walmart 10% Nike 15%
3 Calvin Klein 7% Kiehl’s 7% Coach 6% Zappos.com 8% 3 Target 8% Target 9% Macy’s 7% Foot Locker 8%
4 Nordstrom 6% CVS 4% Ebay 5% Amazon 7% 4 Calvin Klein 5% Nike 3% Kohl’s 5% Adidas 7%
5 Macy’s 5% Walmart 4% J.Crew 3% Adidas 5% 5 Macy’s 4% Macy’s 3% Nike 5% Walmart 4%
Rank Clothing Athletic Fragrance Luxury Rank Clothing Athletic Fragrance Luxury
1 J.Crew 11% Nike 23% Macy’s 18% Amazon 13% 1 Amazon 18% Nike 20% Amazon 22% Amazon 22%
2 Amazon 7% Amazon 12% Amazon 14% Nordstrom 9% 2 Walmart 9% Amazon 16% Macy’s 12% Macy’s 8%
3 H&M 5% Adidas 8% Nordstrom 10% Gucci 4% 3 Kohl’s 7% Dick’s 10% Walmart 12% Nike 4%
4 Nordstrom 5% Dick’s 4% Sephora 7% Macy’s 4% 4 Macy’s 7% Adidas 8% Adidas 3% Gucci 4%
5 Macy’s 5% Kohl’s 4% Ebay 5% Barneys New York 3% 5 Nike 7% Under Armour 6% Kohl’s 3% Adidas 4%
3 September 2018
Appendix
Please note: Third party brands used in this report are the property of their respective owners, and are used here for
informational purposes only. The use of such brands should not be viewed as an endorsement, affiliation, or sponsorship by
or for Goldman Sachs or any of its products/services.
Rating and Pricing Information: adidas (B/N, €214.90), Amazon.com Inc. (B/A, $2,012.71), Estee Lauder Co. (B/C, $140.12),
Kering (B/N, €468.00), Nordstrom Inc. (NC, $62.85), Procter & Gamble Co. (N/C, $82.95) and Tapestry Inc. (B/A, $50.69)
We thank Pranav Kapoor for his contribution to this report.

3 September 2018
Goldman Sachs
Disclosure Appendix
Reg AC
We, Alexandra Walvis, CFA, Matthew J. Fassler, Jason English, Heath P. Terry, CFA, Richard Edwards, Louise Singlehurst, Fulvio Cazzol, Brooke Roach and Rosalie Frazier, hereby certify that all of the views
expressed in this report accurately reflect our personal views about the subject company or companies and its or their securities. We also certify that no part of our compensation was, is or will be, directly
or indirectly, related to the specific recommendations or views expressed in this report.
Unless otherwise stated, the individuals listed on the cover page of this report are analysts in Goldman Sachs’ Global Investment Research division.
GS Factor Profile
The Goldman Sachs Factor Profile provides investment context for a stock by comparing key attributes to the market (i.e. our coverage universe) and its sector peers. The four key attributes depicted are:
Growth, Financial Returns, Multiple (e.g. valuation) and Integrated (a composite of Growth, Financial Returns and Multiple). Growth, Financial Returns and Multiple are calculated by using normalized ranks
for specific metrics for each stock. The normalized ranks for the metrics are then averaged and converted into percentiles for the relevant attribute. The precise calculation of each metric may vary
depending on the fiscal year, industry and region, but the standard approach is as follows:
Growth is based on a stock’s forward-looking sales growth, EBITDA growth and EPS growth (for financial stocks, only EPS and sales growth), with a higher percentile indicating a higher growth company.
Financial Returns is based on a stock’s forward-looking ROE, ROCE and CROCI (for financial stocks, only ROE), with a higher percentile indicating a company with higher financial returns. Multiple is
based on a stock’s forward-looking P/E, P/B, price/dividend (P/D), EV/EBITDA, EV/FCF and EV/Debt Adjusted Cash Flow (DACF) (for financial stocks, only P/E, P/B and P/D), with a higher percentile indicating
a stock trading at a higher multiple. The Integrated percentile is calculated as the average of the Growth percentile, Financial Returns percentile and (100% - Multiple percentile).
Financial Returns and Multiple use the Goldman Sachs analyst forecasts at the fiscal year-end at least three quarters in the future. Growth uses inputs for the fiscal year at least seven quarters in the future
compared with the year at least three quarters in the future (on a per-share basis for all metrics).
For a more detailed description of how we calculate the GS Factor Profile, please contact your GS representative.
M&A Rank
Across our global coverage, we examine stocks using an M&A framework, considering both qualitative factors and quantitative factors (which may vary across sectors and regions) to incorporate the
potential that certain companies could be acquired. We then assign a M&A rank as a means of scoring companies under our rated coverage from 1 to 3, with 1 representing high (30%-50%) probability of
the company becoming an acquisition target, 2 representing medium (15%-30%) probability and 3 representing low (0%-15%) probability. For companies ranked 1 or 2, in line with our standard
departmental guidelines we incorporate an M&A component into our target price. M&A rank of 3 is considered immaterial and therefore does not factor into our price target, and may or may not be
discussed in research.
Quantum
Quantum is Goldman Sachs’ proprietary database providing access to detailed financial statement histories, forecasts and ratios. It can be used for in-depth analysis of a single company, or to make
comparisons between companies in different sectors and markets.
GS SUSTAIN
GS SUSTAIN is a global investment strategy focused on the generation of long-term alpha through identifying high quality industry leaders. The GS SUSTAIN 50 list includes leaders we believe to be well
positioned to deliver long-term outperformance through superior returns on capital, sustainable competitive advantage and effective management of ESG risks vs. global industry peers. Candidates are
selected largely on a combination of quantifiable analysis of these three aspects of corporate performance.
Disclosures
Coverage group(s) of stocks by primary analyst(s)
Alexandra Walvis, CFA: America-Apparel & Accessories Brands, America-Apparel & Accessories Retail. Matthew J. Fassler: America-Retail: Specialty Hardlines. Jason English: America-Food: Packaged &
Manufacturing, America-Household Products/Personal Care. Heath P. Terry, CFA: America-Internet. Richard Edwards: Europe-General Retail. Louise Singlehurst: Europe-Luxury Retail. Fulvio Cazzol:
Europe-Food, Europe-HPC & Tobacco.
America-Apparel & Accessories Brands: Canada Goose Holdings, Canada Goose Holdings, Lululemon Athletica Inc., Michael Kors Holdings, Nike Inc., PVH Corp., Ralph Lauren Corp., Tapestry Inc., Tiffany &
Co., Under Armour Inc., VF Corp..
America-Apparel & Accessories Retail: Burlington Stores Inc., Kohl’s Corp., Macy’s Inc., Nordstrom Inc., Ross Stores Inc., TJX Cos..
America-Food: Packaged & Manufacturing: Campbell Soup Co., Conagra Brands Inc., General Mills Inc., Hershey Co., J. M. Smucker Co., Kellogg Co., Kraft Heinz Co., Mondelez International Inc., Pinnacle
Foods Inc., Post Holdings, The Simply Good Foods Co..
3 September 2018
Goldman Sachs
America-Household Products/Personal Care: Church & Dwight Co., Clorox Co., Colgate-Palmolive Co., Edgewell Personal Care, Energizer Holdings, Estee Lauder Co., Freshpet Inc., Kimberly-Clark Corp.,
Procter & Gamble Co., Valvoline Inc..
America-Internet: Amazon.com Inc., Blue Apron Holdings, Booking Holdings Inc., CarGurus Inc., Criteo SA, eBay Inc., Etsy Inc., Expedia Group, GrubHub Inc., LendingClub Corp., Netflix Inc., Pandora
Media Inc., PayPal Holdings, Redfin Corp., Snap Inc., Spotify Technology S.A., TripAdvisor Inc., Trivago N.V., Twitter Inc., Zillow Group.
America-Retail: Specialty Hardlines: Advance Auto Parts Inc., At Home Group, AutoZone Inc., Bed Bath & Beyond Inc., Best Buy Co., BJ’s Wholesale Club Holdings, CarMax Inc., Container Store Group,
Costco Wholesale, Dick’s Sporting Goods, Floor & Decor Holdings, Genuine Parts Co., Home Depot Inc., KAR Auction Services Inc., Lowe’s Cos., Lumber Liquidators Holdings, Michaels Cos., Monro
Muffler Brake Inc., National Vision Holdings, O’Reilly Automotive Inc., Office Depot, RH, Target Corp., Tractor Supply Co., Ulta Beauty Inc., Walmart Inc., Wayfair Inc., Williams-Sonoma Inc..
Europe-Food: Agrana, Aryzta, Barry Callebaut, Chr Hansen, Danone, Kerry, Lindt & Sprungli, Nestle, Novozymes, Orkla ASA, Suedzucker AG, Tate & Lyle, Unilever, Unilever Plc.
Europe-General Retail: adidas, ASOS Plc, Associated British Foods, B&M European Value Retail SA, CECONOMY, Dixons Carphone Plc, Europris ASA, Hennes & Mauritz, Home24 SE, Inditex, Kingfisher,
Maisons du Monde SAS, Marks & Spencer, Next, OVS SpA, Pets at Home Group, Puma, Rocket Internet SE, SMCP, Ted Baker, Tokmanni Group, XXL ASA, Zalando SE.
Europe-HPC & Tobacco: Beiersdorf, British American Tobacco, Essity AB, Henkel, Imperial Brands, L’Oreal, Ontex Group, Reckitt Benckiser, Swedish Match.
Europe-Luxury Retail: Brunello Cucinelli SpA, Burberry, Hermes International, Hugo Boss AG, Kering, Luxottica (Italy), LVMH Moet-Hennessy Louis Vuitton, Moncler SpA, Pandora, Prada SpA, Richemont,
Salvatore Ferragamo SpA, Swatch Group, Technogym SpA, Tod’s.
Company-specific regulatory disclosures

Compendium report: please see disclosures at http://www.gs.com/research/hedge.html. Disclosures applicable to the companies included in this compendium can be found in the latest relevant published
research
Distribution of ratings/investment banking relationships

Goldman Sachs Investment Research global Equity coverage universe
Rating Distribution Investment Banking Relationships

Buy Hold Sell Buy Hold Sell
Global 35% 53% 12% 63% 56% 51%
As of July 1, 2018, Goldman Sachs Global Investment Research had investment ratings on 2,851 equity securities. Goldman Sachs assigns stocks as Buys and Sells on various regional Investment Lists;
stocks not so assigned are deemed Neutral. Such assignments equate to Buy, Hold and Sell for the purposes of the above disclosure required by the FINRA Rules. See ‘Ratings, Coverage groups and
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investment banking services within the previous twelve months.
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Compendium report: please see disclosures at http://www.gs.com/research/hedge.html. Disclosures applicable to the companies included in this compendium can be found in the latest relevant published
research
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2018 Top Brands

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3 September 2018 | 9:16PM EDT

IT GIRL SHOPPING HABITS: What’s different this year? 12

ONLINE BEHAVIOR: Shift to online shopping is accelerating 14

SHARE SHIFTS: Preferences consolidating in shoes as athletic gains share 16

AMAZON: Gaining traction across categories and cohorts 18

A MORE CASUAL CONSUMER: Active fashion is now mainstream fashion 20

CLOTHING RETAILERS: Amazon adoption accelerating among mainstream consumers 25

HANDBAG BRANDS: Kate Spade and Michael Kors gain momentum 26

HANDBAG RETAILERS: It Girls prefer Nordstrom as a shopping destination 27

SHOE RETAILERS: Nike and Amazon consolidate as top retailers 29

ATHLETIC RETAILERS: Nike still preferred, but losing share to Amazon 31

BEAUTY BRANDS: Multi-line specialty a favorite destination for branded product 33

LUXURY/PREMIUM BRANDS: Gucci rises above the rest 38

LUXURY/PREMIUM RETAILERS: Nordstrom makes a strong showing among It Girls 39

A FOCUS ON MEN: Mass brands preferred, purchased through mass channels 40

PM SUMMARY: Revisiting the preferences of young consumers

Key themes emerging from this year’s analysis

Key Stock Ideas

margin pressures from investment, and valuation.

12% 12% 11% 11% 11% 10% 10%

The Next List and Iconic Movers:

The Next List The Iconic Movers

Source: Conde Nast-Goldman Sachs Love List

12% 11% 11% 10% 10% 10% 10% 9% 9%

IT GIRL SHOPPING HABITS: What’s different this year?

2017 2018 2017 2018

ONLINE BEHAVIOR: Shift to online shopping is accelerating

SHARE SHIFTS: Preferences consolidating in shoes as athletic gains share

10% -350bps -317bps

15% -100bps -75bps

AMAZON: Gaining traction across categories and cohorts

Amazon Affinity by Cohort

Handbags / Underwear / Color

Source: Conde Nast-Goldman Sachs Love List

National Survey Clothing

Bags, Briefcases, Athletic/ Workout

2017 2018 Shoes

A MORE CASUAL CONSUMER: Active fashion is now mainstream fashion

40% 40% 36%

% of Favorite Mobile App

2017 Inc + Dec - 2017 Inc + Dec -

16% 12% 12%

% of Favorite Mobile App

2017 Inc + Dec - 2017 Inc +

% of Favorite Mobile App

Source: Conde Nast-Goldman Sachs Love List

Source: Conde Nast-Goldman Sachs Love List

CLOTHING RETAILERS: Amazon adoption accelerating among mainstream consumers

Source: Conde Nast-Goldman Sachs Love List

HANDBAG BRANDS: Kate Spade and Michael Kors gain momentum

Source: Conde Nast-Goldman Sachs Love List

HANDBAG RETAILERS: It Girls prefer Nordstrom as a shopping destination

Source: Conde Nast-Goldman Sachs Love List

Source: Conde Nast-Goldman Sachs Love List

SHOE RETAILERS: Nike and Amazon consolidate as top retailers

while DSW saw mixed results but generally fell in ranking.

Source: Conde Nast-Goldman Sachs Love List

Source: Conde Nast-Goldman Sachs Love List

ATHLETIC RETAILERS: Nike still preferred, but losing share to Amazon

Source: Conde Nast-Goldman Sachs Love List

Source: Conde Nast-Goldman Sachs Love List

BEAUTY BRANDS: Multi-line specialty a favorite destination for branded product

Source: Conde Nast-Goldman Sachs Love List

Source: Conde Nast-Goldman Sachs Love List