Morgan Stanley Reports Strong May For Chico's FAS

According to Morgan Stanley, Chico's FAS

had a strong May. Morgan Stanley said that Ex in-transit inventory, inv. psf rose +9.5%, moderately above our 2Qe 7% comp. “A strong May and markdown improvement in 2H11 could limit GM risk. Valuation looked rich at $15, given CHS' limited growth potential and we see today's -5% drop as a return to fair value.” Chico's FAS closed yesterday at $14.43.