J. Crew Falls After Needham Lowers Profit Estimates
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J. Crew Group Inc. fell the most since August in New York trading after Needham & Co. cut profit estimates for the clothing retailer, saying increased promotions will lower earnings.
“The fall season has been difficult, due to warmer weather trends, increased promotional environment at the competition and a lack of dramatic fashion newness,” Christine Chen, a Needham analyst in San Francisco, wrote in a note to clients today. Second-half profit margins will be under pressure as the New York-based company increases promotions, she said.