Guess' Inc. (NYSE:GES) Q1 2020 Earnings Conference Call Transcript
Jun 06, 2019 • 04:45 pm ET
accretion due to the impact of the convert transaction and share repurchases. Our adjusted EPS guidance includes an assumption of $1.7 million of cash interest expense and amortization of loan fees related to the convertible debt transaction.
Our tax rate for the quarter is estimated to be 25%. We expect consolidated revenues for the year to be up between 6% and 7% in constant currency. At prevailing exchange rates, we estimate currency to have a 2.5% negative impact on consolidated revenue growth for the year. For the full year, we expect gross margins to be up, due to improved IMUs in both the Americas and Europe, as well as lower logistics and distribution costs in Europe.
The adjusted SG&A rate is expected to be up for the year, due to an increase in investment in advertising, as well as performance based compensation. Our adjusted tax rate for the year is estimated to be 25%. We are planning an adjusted operating margin between 4.8% and 5.2% with minimal currency impact on operating margin, and our guidance assumes that foreign currencies will remain roughly at prevailing rates.
Adjusted earnings per share is planned in the range of $1.19 and $1.30 with a $0.03 headwind from currency. This includes $0.10 in its estimated accretion due to the share repurchases and convert transactions. Our adjusted EPS guidance includes an assumption of $5.3 million of cash interest and loan amortization expense. As a reminder, our prior guidance for the year was $1.09 to $1.21 with the currency tailwind of $0.02. The high end of our new guidance now represents a 33% increase over last year's adjusted EPS.
CapEx for the year is expected to range from $55 million to $65 million to support store openings, key store remodels and investments in our technology infrastructure to support long term growth. Please note that this is down from $108 million in the prior year. The lower CapEx combined with our inventory and working capital management focus are expected to generate improved free cash flow this year even after considering the $46 million EU Commission fine payment we made in the first quarter. The Board of Directors has approved a quarterly dividend of $11.25 per share payable to shareholders of record at the close of business on June 19th, 2019.
With that I will conclude the Company's remarks and open the call up for your questions.