What Teens Are Buying Now, and What Adidas Just Proved About Retro Style

Two clothing stories landed in the same week, and together they say something useful about where style is heading. Teen shoppers are spending more again, but they are spending it differently. And one of the biggest sportswear brands in the world just posted a record quarter by leaning into retro looks and full-price selling. Neither story is about a single logo. Both are about fit, feeling, and value.

Teens are spending more, but athletic brands are losing fashion share

Piper Sandler's 26th Annual Teen Survey, reported by Retail Dive on October 21, 2026, surveyed almost 9,000 teens aged 13 to 19. The survey estimated total teen spending at about 65 billion dollars, with teens self-reporting about 2,350 dollars each per year.

Teen spending rebounded in fall 2026, up 6 percent year over year, with spending among higher-income teens up 11 percent. Apparel spending was up 7 percent year over year, and girls' apparel spending was up 10 percent. That rebound came even though 70 percent of teens said the economy was getting worse, up from 62 percent in fall 2025.

The shift is in what teens choose. Athletic brands overall, including Nike, Adidas, and Lululemon, saw their fashion share decline to 29 percent from 32 percent last year, after collectively reaching a high of 44 percent three years ago. Lululemon lost mindshare for the fifth consecutive survey, and the decline was especially notable among upper-income teen girls.

Footwear told a similar story. Footwear spending was down 1 percent overall. Nike, Adidas, and New Balance continued to lead footwear, with Nike accounting for 45 percent of the overall share, but all three lost percentage points, while On gained share, especially with teen boys.

What gained ground instead? Specialty retailers, including American Eagle, H and M, Pacsun, Hollister, and Urban, accounted for 23 percent of fashion mindshare, up 8 percentage points year over year. Clothing accounted for 22 percent of overall spending for upper-income teens and 21 percent for average-income teens. Secondhand shopping stayed strong: 44 percent of upper-income teens said they purchased clothing from secondhand shops, up from 42 percent year over year. Amazon was by far the most popular online shopping destination, comprising about 50 percent of the upper-income teen online shopping share.

Teen girls' fashion spending was driven equally by apparel and accessories, both up 13 percent year over year, while footwear spending was flat. Over two years relative to fall 2024, teen girls' fashion spending rose 15 percent, driven by accessories up 19 percent, apparel up 18 percent, and footwear up 1 percent.

Read plainly, the survey does not say young shoppers stopped caring about clothes. It says they stopped defaulting to the same athletic names. They are mixing specialty pieces, secondhand finds, and accessories, and they are choosing what fits their day rather than what a logo promises.

Adidas posted a record quarter on retro demand and full-price sales

On October 20, 2026, Reuters reported that Adidas raised its full-year profit outlook and reported a 37 percent increase in third-quarter operating profit, lifted by a United States tariff refund and full-price sales.

Third-quarter operating profit rose to a record 1.008 billion euros (1.1 billion dollars) from 736 million euros a year earlier. Adidas said it had benefited from demand for its retro apparel and a soccer World Cup boost as it races to roll out new styles.

The company said its tariff refund, in the wake of a United States court ruling, totalled around 200 million euros. It said operating profit for the full year would be around 100 million euros more than previously expected, and that it would reinvest around 100 million euros in the fourth quarter, resulting in a new 2026 operating profit forecast of 2.5 billion euros, up from a previous forecast of 2.3 billion euros. Adidas made the statements in an unscheduled earnings release ahead of its full earnings report scheduled for October 29.

Two details matter here. First, a tariff refund is a one-time item, not a recurring sales trend, so it should not be read as proof that demand alone produced the whole result. Second, the demand part of the story is still real: retro apparel and full-price sales were named as drivers. In other words, shoppers paid full price for styles they actually wanted, rooted in looks they already recognized.

That is a useful contrast to a discount-first strategy. Heavy markdowns can clear stock, but they can also train shoppers to wait for the next sale. A piece that earns its price on fit, comfort, and a look people want to repeat does not need a constant discount to move.

What this means for how we dress now

Put the two stories together and a pattern shows up. The winning pieces are versatile, comfortable, and easy to repeat: a hoodie that works for a workout, a walk, and a weekend out. A retro-inspired top that pairs with denim or joggers without a costume change. A set that feels put together without trying too hard.

That is also where smaller brands have room. A big brand has to win back a broad audience. A smaller brand only has to serve its own people well: consistent fits, honest prices, and pieces that hold up in a real rotation. When shoppers are already mixing specialty, secondhand, and everyday pieces, a comfortable, well-made staple earns its place without shouting.

At Rekreational Apparel, that is the lane we build for: slides, shorts, hoodies, and headgear made for everyday movement, not just gym time. Our RA Basic Camo hoodie is a good example of the idea in this week's news. It is a straightforward, wearable piece that fits the relaxed, retro-leaning mood shoppers are choosing, and it pairs with the rest of a daily rotation instead of demanding a whole new outfit around it.

The lesson from this week is simple. Do not chase a logo, and do not chase a discount. Make something comfortable that people reach for again, price it fairly, and let the repeat wear do the talking.

Sources:

- Retail Dive, "Teen spending up 6% as they trade athletic apparel for fashion," October 21, 2026, reporting Piper Sandler's 26th Annual Teen Survey: https://www.retaildive.com/news/teen-spending-grows-trade-athletic-apparel-fashion-piper-sandler/833565/

- Reuters, "Germany's Adidas raises full-year profit outlook after record quarter," October 20, 2026: https://northlandnewsradio.com/2026/10/20/germanys-adidas-raises-full-year-profit-outlook-after-record-quarter/

Read the full story on rekreational-apparel.com in the Journal.