NET INCOME PER SHARE

3 Months Ended

Oct. 28, 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 to Net income available to Class A and Class B shareholders:


	13 Weeks Ended
		October 28, 2023		October 29, 2022
Net income		$	11,585	$	11,081
Distributed and allocated undistributed Net income to unvested restricted shareholders		440		304
Net income available to Class A and Class B shareholders		$	11,145	$	10,777

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


	13 Weeks Ended
	October 28, 2023
		Class A		Class B
Numerator:
Net income allocated, basic		$	8,782	$	2,363
Conversion of Class B to Class A shares		2,363		—

Net income allocated, diluted		$	11,145	$	2,363

Denominator:
Weighted average shares outstanding, basic		10,146		4,204
Conversion of Class B to Class A shares		4,204		—

Weighted average shares outstanding, diluted		14,350		4,204

	13 Weeks Ended
	October 29, 2022
		Class A		Class B
Numerator:
Net income allocated, basic		$	8,402	$	2,376
Conversion of Class B to Class A shares		2,376		—

Net income allocated, diluted		$	10,778	$	2,376

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

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

Outstanding stock options to purchase Class A shares of 86 and 93 were excluded from the calculation of diluted net income per share at October 28, 2023 and October 29, 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 October 28, 2023 and October 29, 2022, respectively, due to their anti-dilutive effect.