AnnTaylor 1Q11 Above Morgan Stanley Estimates

AnnTaylor Stores Corp. ANN reported 1Q EPS of $0.51, “above our estimate and consensus at $0.48. Sales (+9c) grew 3% ahead of guidance and our estimate on controlled SG&A expense (+1c),” Morgan Stanley reports. “Gross margin decreased 210 bps from a record rate LY, driving -7c downside vs. our estimate,” Morgan Stanley writes. “An increased sales outlook drives 2011 line-item guidance higher to the $1.80-1.85 range from $1.70-1.80 prior.” AnnTaylor closed Friday at $29.09.