Walgreen's Q1'15 Earnings Preview: Topline Continues To Grow Though Margins Remain Under Pressure

While Walgreen's top line continues to grow, it faces ongoing pressure on gross margins. The company believes that the margin pressure will persist in the short-term. A cautious consumer, ongoing reimbursement pressure, generic drug inflation and significant step-downs from Med D reimbursement rates, are some of the factors that will act as headwinds in fiscal 2015. Nevertheless, Walgreen believes that it is well-positioned to capitalize on the industry tailwinds, which include an aging populati...