$28 Offer for St. John Knits Shares Criticized

Wall Street analysts and big investors took aim at St. John Knits Chief Executive Robert E. Gray, calling the $28-per-share price his family offered for the upscale women’s apparel maker “grossly inadequate” and “really ridiculous.” The comments came during a conference call to discuss the Irvine firm’s fourth-quarter profit, which fell on a year-over-year basis for the first time since the company went public in 1993. Per-share profit fell 34%, prompting Gray to note that it was the worst fall season in the firm’s history. He said St. John has tried to grow too quickly, causing manufacturing inefficiencies that ultimately hurt profit. Shares fell 13 cents to close at $25.94 on the New York Stock Exchange.