Goldman Sachs Reports Ann Is A New Woman

According to Goldman Sachs, ANN (NYSE: ANN) is looking a new woman.

Goldman Sachs said that 1Q 2011 EPS of $0.52 was above GS/Consensus of $0.47/$0.48, with better sales (total company comps +8%) and SG&A (leveraged 270bps) offsetting weaker than expected gross margin (-210bps). “Ann Taylor continued to drive the sales momentum with brand comps +15%; Loft comps were +2.4%, driven by gains at e-comm and outlet that offset a 1% decline at stores. Despite Q1 pressure, management maintained that gross margins would be flat for the year, and expect to leverage SGA 100bps based on +mid-single digit comp; this implies FY2011 EPS of around $1.85, slightly above consensus of $1.80. Management also guided to 2Q comps up mid single, SG&A of $265, GM +50bps, and EPS “slightly higher than current consensus” of $0.45.”

ANN closed on Friday at $29.09.