Analyst Cautious on Recent Promotional, Gross Margin Investments from Walgreen (WAG)
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Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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Walgreen (NYSE: WAG) is lower amid cautious commentary out of Cleveland Research today.
Analyst Eric Bosshard alludes to recent promotional and gross margin investments from Walgreen. The analyst thinks the need to cut some SG&A might reflect additional funding would be needed for the initiative.
Walgreen might also be looking for incremental integration of Alliance Boots' merchandising discipline within its business, Bosshard said. Those synergies won't happen overnight and may take time and investment to develop.
Despite the moves by Walgreen, the retail pharmacy has been able to boost sales and increase market share, the analyst noted.
Shares of Walgreen are down 0.4 percent Tuesday afternoon. Note: Walgreen will report Q1 results on December 20th. The Street is currently modeling EPS of $0.72 with revenue of $18 billion.
Analyst Eric Bosshard alludes to recent promotional and gross margin investments from Walgreen. The analyst thinks the need to cut some SG&A might reflect additional funding would be needed for the initiative.
Walgreen might also be looking for incremental integration of Alliance Boots' merchandising discipline within its business, Bosshard said. Those synergies won't happen overnight and may take time and investment to develop.
Despite the moves by Walgreen, the retail pharmacy has been able to boost sales and increase market share, the analyst noted.
Shares of Walgreen are down 0.4 percent Tuesday afternoon. Note: Walgreen will report Q1 results on December 20th. The Street is currently modeling EPS of $0.72 with revenue of $18 billion.
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