EARNINGS PER SHARE

12 Months Ended

Jan. 30, 2016

NOTE 4. EARNINGS PER SHARE

The computation of basic earnings per share (EPS) is based on the number of weighted average common shares outstanding during the period. The computation of diluted EPS is based on the weighted average number of shares outstanding plus the incremental shares that would be outstanding assuming exercise of dilutive stock options and issuance of restricted stock. The number of incremental shares is calculated by applying the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share in thousands:

	Fiscal Year Ended
	January 30, 2016		January 31, 2015		February 1, 2014
Net income	$	$70,528	$	$73,584	$	$70,877

Weighted average number of common shares outstanding		23,947		25,369		25,870
Dilutive stock options		35		66		96
Dilutive restricted stock units		147		185		300
Weighted average number of common shares outstanding and dilutive shares		24,129		25,620		26,266

Basic earnings per share	$	2.95	$	2.90	$	2.74
Diluted earnings per share	$	2.92	$	2.87	$	2.70

In calculating diluted earnings per share for Fiscal 2016, 120,206 options to purchase shares of common stock outstanding as of the end of the period were excluded in the computations of diluted earnings per share due to their anti-dilutive effect. In calculating diluted earnings per share for Fiscal 2015, 677 options to purchase shares of common stock outstanding as of the end of the period were excluded in the computations of diluted earnings per share due to their anti-dilutive effect. In calculating diluted earnings per share for Fiscal 2014, there were no options to purchase shares of common stock outstanding as of the end of the period that were excluded in the computations of diluted earnings per share due to their anti-dilutive effect.

We excluded 24,350 nonvested stock awards granted to certain employees from the computation of diluted weighted average common shares and common share equivalents outstanding, because they are subject to performance-based annual vesting conditions which had not been achieved by the end of Fiscal 2016. Assuming the performance criteria had been achieved at target as of January 30, 2016, the incremental dilutive impact would have been 14,555 shares.