Ralph Lauren gains as Morgan Stanley interns shift preferences

Morgan Stanley's summer interns are trading Nike for On sneakers, ditching Starbucks for independent coffee shops, and rediscovering luxury brands like Ralph Lauren. The bank's annual survey of more than 500 North American interns, conducted in June and published in early August, offers a window into the spending habits of the next generation of high-income earners.

Ralph Lauren was the preferred apparel brand for 18% of respondents, up sharply from prior years. The brand made what the bank called "notable upward strides" – a gain that aligns with broader luxury sector efforts to win back younger consumers. McKinsey has noted that Gen Z and millennial shoppers are increasingly spending on luxury to signal status and identity, with exclusivity a key driver. The shift appears to be showing up in the intern crowd.

Nike's grip on sneaker preference continued to loosen. Only 28% of interns named it their go-to shoe, down from 36% in 2023 and 58% in 2021. On, the Swiss brand, rose to second place at 13%. Hoka came in third. The decline mirrors Nike's broader struggles – the stock was down about 36% year-to-date through Friday's close.

Zara remained the top apparel brand at 22%, with Uniqlo close behind at 21% in its first year in the survey. Lululemon fell to 19% from 22% last year as the brand works to win back American consumers.

Luxury handbags reclaimed the top spot among female interns, with 20% choosing a luxury brand, up from 15% in 2023. Chanel and Dior led the category. Coach and Longchamp followed. The share of interns with no handbag preference fell to 34% from 38%.

Chipotle was the clear favorite restaurant chain, cited by 57% of interns. Chick-fil-A and Cava were the next most popular, at 43% and 32% respectively. On the beverage side, independent coffee shops slightly edged out Starbucks, 49% to 46%.

More than half of the interns said they prefer indoor gyms for working out. Only 3% reported no preferred exercise, reflecting the health-conscious tendencies of the cohort.

Mercedes remained the top car brand. Over 40% said they would choose a hybrid vehicle, while just 16% would go fully electric. In the robotaxi category, Uber led with 31%, followed by Waymo at 29%, up from 23% a year ago.

For investors, the survey provides a real-time read on brand momentum among a cohort that will soon command Wall Street salaries. Ralph Lauren's Alpha Score is 63 out of 100, a Moderate rating that suggests the brand's traction with younger consumers could support its stock. Starbucks faces a more mixed picture, with an Alpha Score of 48, as independent coffee shops gain ground.