Morgan Stanley intern survey shows shifts in apparel and footwear

Investing.com -- Morgan Stanley released its eighth annual AlphaWise intern survey on Tuesday, showing continued fragmentation in apparel and athletic footwear markets, while handbag preferences became more concentrated around Coach and luxury brands.

The survey results support Morgan Stanley's overweight rating on TPR:NYSE and underweight rating on LULU:NASDAQ.

In the apparel category, fragmentation increased as several category leaders lost market share, including Lululemon and Zara. Ralph Lauren and Vuori were among the brands that gained the most share, according to the survey.

Lululemon's preference among survey respondents declined for a third consecutive year, reaching its lowest level in the survey's history. Morgan Stanley said this supports its underweight view on the stock and indicates continued brand pressure and intensifying competition.

In handbags, Coach rose to the number one position for the first time in the survey's history. The brand's increased share became more concentrated alongside luxury brands, which Morgan Stanley said underscores continued brand momentum and supports its overweight rating on Tapestry.

Athletic footwear showed further fragmentation, with Nike losing share for the fifth consecutive year. The brand's share fell to its lowest level in survey history, with losses accelerating compared to the prior year.

On Running posted the largest year-over-year share gain in athletic footwear and rose to the number two preference ranking among survey respondents.

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