NET INCOME PER SHARE

9 Months Ended

Apr. 29, 2023

The Company has two classes of common stock. Class A common stock is entitled to cash dividends as declared 54% greater than those paid on Class B common stock. Shares of Class B common stock are convertible on a share-for-share basis for Class A common stock at any time.

The Company utilizes the two-class method of computing and presenting net income per share. The two-class method is an earnings allocation formula that calculates basic and diluted net income per share for each class of common stock separately based on dividends declared and participation rights in undistributed earnings. Under the two-class method, Class A common stock is assumed to receive a 54% greater participation in undistributed earnings than Class B common stock, in accordance with the classes' respective dividend rights. Unvested share-based payment awards that contain nonforfeitable rights to dividends are treated as participating securities and therefore included in computing net income per share using the two-class method.

Diluted net income per share for Class A common stock is calculated utilizing the if-converted method, which assumes the conversion of all shares of Class B common stock to Class A common stock on a share-for-share basis, as this method is more dilutive than the two-class method. Diluted net income per share for Class B common stock does not assume conversion of Class B common stock to shares of Class A common stock.

The table below reconciles Net income (loss) to Net income available to Class A and Class B shareholders:


	13 Weeks Ended				39 Weeks Ended
	April 29, 2023		April 30, 2022		April 29, 2023		April 30, 2022
Net income (loss)	$	11,017	$	(3,231)	$	34,422	$	14,227
Distributed and allocated undistributed Net income (loss) to unvested restricted shareholders	369		(93)		1,014		429
Net income available to Class A and Class B shareholders	$	10,648	$	(3,138)	$	33,408	$	13,798

The tables below reconcile the numerators and denominators of basic and diluted Net income (loss) per share for all periods presented.


	13 Weeks Ended				39 Weeks Ended
	April 29, 2023				April 29, 2023
	Class A		Class B		Class A		Class B
Numerator:
Net income (loss) allocated, basic	$	8,311	$	2,336	$	26,055	$	7,354
Conversion of Class B to Class A shares	2,336		—		7,354		—

Net income (loss) allocated, diluted	$	10,647	$	2,336	$	33,409	$	7,354

Denominator:
Weighted average shares outstanding, basic	9,863		4,294		9,863		4,294
Conversion of Class B to Class A shares	4,294		—		4,294		—

Weighted average shares outstanding, diluted	14,157		4,294		14,157		4,294

	13 Weeks Ended				39 Weeks Ended
	April 30, 2022				April 30, 2022
	Class A		Class B		Class A		Class B
Numerator:
Net income allocated, basic	$	(2,447)	$	(691)	$	10,757	$	3,041
Conversion of Class B to Class A shares	(691)		—		3,041		—
Effect of share-based compensation on allocated net income	(19)		(14)		—		—
Net income allocated, diluted	$	(3,157)	$	(705)	$	13,798	$	3,041

Denominator:
Weighted average shares outstanding, basic	9,876		4,294		9,871		4,294
Conversion of Class B to Class A shares	4,294		—		4,294		—

Weighted average shares outstanding, diluted	14,170		4,294		14,165		4,294

Outstanding stock options to purchase Class A shares of 90 and 102 were excluded from the calculation of diluted net income per share at April 29, 2023 and April 30, 2022, respectively, as a result of their anti-dilutive effect. In addition, 507 and 363 non-vested restricted Class A shares, which are considered participating securities, and their allocated net income were excluded from the diluted net income per share calculation at April 29, 2023 and April 30, 2022, respectively, due to their anti-dilutive effect.