Lululemon Athletica Inc. (NASDAQ:LULU) Q2 2019 Earnings Conference Call Transcript
Sep 05, 2019 • 04:30 pm ET
Patrick (PJ) Guido
expect revenue to be in the range of $3.8 billion to $3.84 billion. This is based on a comparable sales percentage increase in the low-teens on a constant dollar basis. We expect to open approximately 45 to 50 company-operated stores in 2019. This includes approximately 30 stores in our international markets and represents a square footage percentage increase in the mid- to high-teens range.
We expect gross margin for the year to expand modestly primarily driven by continued product margin improvement. We expect SG&A for the full-year to leverage modestly. We expect our fiscal year 2019 diluted earnings per share to be in the range of $4.63 to $4.70. Our EPS guidance is based on 131 million diluted weighted average shares outstanding for the year. This range takes into account, approximately $0.04 to $0.05 of additional cost within gross margin related to the tariffs and airfreight that I mentioned earlier. We expect our effective tax rate to be approximately 27.5% in 2019. We have assumed the Canadian dollar at CAD0.75 to the US dollar for 2019, as well as Q3. We now expect capital expenditures to be approximately $275 million to $285 million for the fiscal year 2019.
The increase versus 2018 reflects a ramp up of our store renovation and relocation program, new store openings, technology investments and other general corporate infrastructure projects. In closing, we're excited with the continued strength we're seeing in the business and we remain optimistic about the fall season and beyond.
And now back to Calvin for some closing remarks.
I would like to thank, PJ and Celeste for providing these insights in our business and performance. All of us within the company are proud of what we've achieved. As I travel around the world, I see guests responding to our products, our innovations and living the Sweatlife. Finally, I'd like to thank everyone at lululemon for their commitment and dedication in achieving these results.
And with that, we'll be happy to take your questions. Operator?