let's check out the teen retailers, the group having a tough time, aeropostal plunging 60%. so are they bottoming out? should you invest in the space right now? you're going to meet the teens that wall street listens to. find out the trends that they're seeing before the analysts do. >>> and where do you mostly shop? go to cnbc.com/vote and let us know. join the conversation. "power lunch" is back in two. thank ythank you for defendiyour sacrifice. and thank you for your bravery. thank you colonel. thank you daddy. military families are uniquely thankful for many things, the legacy of usaa auto insurance can be one of them. if you're a current or former military member or their family, get an auto insurance quote and see why 92% of our members plan to stay for life. the cadillac summer collection is here. ♪ ♪ during the cadillac summer's best event, lease this all new 2014 cts for around $459 a month or purchase with 0% apr and make this the summer of style. >>> welcome back to "power lunch." disney shares nearing an all-time high, currently trading up, a look at the board t

this is the guy that built aeropostal to what it was, you know, now -- i don't know.watching afterle, we should say. i guess -- actually not far from a hundred dollars a share after the stock split. i guess middle of september is when we'll get the new iphone launch. might be the point which you decide buy heading into the fourth quarter. correct me if i'm wrong. >> yes, leading up to it. the stock tends to peak before the launch, but a lot of enthusiasm and momentum into the big launches, the sapphire glass, everyone's talking about, the harder glass that does not break, giving momentum and enthusiasm and people are due for the product refreshes, upgrade to the new model. shares of elizabeth arden on the move. disappointing results, the celebrity fragrances not selling like they used to, down 25% right now. just closed a stake from roan capital, not doing much to lift shares. arden trying to get back to profit the to cut costs and all sorts of things, but could be taking several quarters. >> sharapova selling candy. >> the business valued more highhig highly than ard

cents a share, beating wall street's forecast and raise the the full year profit guidance, but aeropostal, a down beat outlook posting a 46 cents loss, the result days after the company announced a change in ceos, bringing back a former ceo there, aeropostal blames, guys, the store traffic. look at the detail of the average sale price is good, but can't get the store traffic, it say, anding iffing a worst result in the back-to-school quarter as well. >> no good news from aeropostal. i looked at the gap release, twam. if you divide it up, it's different stories. they have banana republic and old navy. old navy is the bright spot for sales, 4% growth, 5% decline at gap, the mainstay. they'll open 40 new stores in india, expansion into india. >> with a partner so they reduce cost. >> i don't know what you think about old navy. they put the athletic wear, i believe, in old navy, a hot seller, denim, which gap relies upon, the name sake brand is there, being one of our fashion beat reporters. >> yes. that is not something i've ever done, but thank you for that. they benefitted greatly, of cour

meantime, rival aeropostal reporting a bigger than expected, shares sent south. let's bring in the ceo. dana, great to have you with us. >> thank you very much, hi. >> hi, what does gap need to do at this point? we now from the same store sales numbers in the month, gap, the flash of gap is having problems as opposed to other brands. >> exactly. that's what they flowed to do as we move forward is see improvement on same store sales. >> that gap brands 30% of sales. by october, we should get the merchandise by the new designers on the selling floor and a pick-up in komps as needed. they managed expenses well and also they came through with inventory levels that they cleaned out for clearance. >> they sure did, dana. this is john najerian. i was in an old navy store recently the lean was so long i had to walk u walk out. they absolutely had stuff marked down to things were moving online as well, dana, which i'd love you to talk about their online strategy. they were delivering coupons in the last week. 40% off back-to-cool online and so forth. can you speak to that

let's start with aeropostal. thomas johnson stepping down as ceo and director. julian geiger, he's stepping back into the suite and on to aeropostale's board. the ceo as of december 2013. they're updating the q2 outlook ahead of the planned earnings input on thursday. it fell 13% year over year. the teen retailer now forecasting a second quarter loss of 42 to 45 cents. that's actually better than its previous range of a loss of 55 to 61 cents and better than the street's current 68 cents. expectations for the losses not good to have losses like that. urban outfitters reporting 49 cents income. revenue of 811 million is slightly better than expected. gross margins fell. same store sales were flat overall. the name sakes urban outfitters stores but up 21% and up 6% at anthropology. that company still has a lot of work through to do as it tries to really increase the brand awareness and the sales at urban outfitters. back to you, sarah. >> courtney, a lot of late-breaking news on the retail front. ken, i can't believe another retail ceo is stepping down. >> well, t

. >> aeropause cell -- aeropostal -- if retailers cannot hold price, if they have to drop it to the marketice, jcpenney, ross -- they do not have the merchandise. >> nordstrom is not doing a lot of back-to-school to begin with. >> they are doing some, but they have a lot of merchandise on which they can hold price. they have brands that people want. merchandise is going to become incredibly important these days, because retailers are looking to hold that price that is under unnatural pressure. >> we should not downplay the fact that hollister, abercrombie & fitch may not be doing well, because they are just not that hot anymore. >> this is a perfect example. they are not competing. it seems like they used to compete with each other and that was it. now they are competing with forever 21, h&m. fronts very on two well. price and merchandise. they have merchandise that people want at prices people are willing to pay. that is a tough combination to beat. >> the lesson should be if you are in the market for back-to-school, wait until school has started because all of these retailers will have i

that's really -- look at the end results from the lower enplayers like aeropostal and american eaglessults than abercrombie, it weighs on the entire group. we have to be smaller, niche group, higher fashion, people will pay if it looks right, but has to be the right fashion. >> you cover guess, a terrible open today. what's the view on that stock? >> if i were to to guess, a two-stage turn around, thought the u.s. would turn first. did not happen. guessments the consumer to pay $930 for a pair of jeans, extremely difficult. the u.s. and european business is turning well, but that is not this year's story. that's next year. >> good to see you. >> thank you. >> thank you for the time. >>> investors who bought stocks in the market dip weeks ago smile ear to ear. find out what names we're talking about next on "squawk on the street." ssrooms and exhibit halls, mentoring tomorrow's innovators. we build it raising roofs, preserving habitats and serving america's veterans. every day, thousands of boeing volunteers help make their communities the best they can be. building something better fo

>> you want to watch some teen retailers, the aeropostals of the world are struggling out there.a calgary. lake i take a look at the department stores like the bond funds and state stores. they're having a struggle these days. >> dana, thank you. >> thank you. >> see you. coming up, being besos. he's created an online book store, turned it into a store for everything. some say he's the next steve jobs. we talked about it a little. we will talk about it more. stick around to find out. apple ready to release a few ipad with both a bigger screen. the unveiling expected to be days from now. andrew they made a bigger ipad. they made a big pad, is this a maxipad. >> it's your first joke in three years that work. >> if i said it he wouldn't have laughed. he stole it from me. the new iphone, a closer look at what people want from these devices and what it means for am when "squawk box" returns. you're driving along, having a perfectly nice day, when out of nowhere a pick-up truck slams into your brand new car. one second it wasn't there and the next second... boom! you've had your first