Mark Friedman of Accruent says he cannot take his firm public because compliance costs might erase his profits.

ECONOMIST: Red tape and scissors | The

Meanwhile, analysts believe the company's downscale Old Navy unit still has more work to do, though Merrill Lynch's Mark Friedman said consumer reaction toward a line of vintage 60s-era hippie t-shirts has been strong.

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CNN's Mark Morgenstein and Chandler Friedman contributed to this report.

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