Net Income (Loss) Per Share and Weighted Average Shares

9 Months Ended

May 02, 2025

Net Income (Loss) Per Share and Weighted Average Shares

Net Income (Loss) Per Share and Weighted Average Shares

9. Net Income (Loss) Per Share and Weighted Average Shares

Basic consolidated net income (loss) per share is computed by dividing consolidated net income (loss) available to common shareholders by the weighted average number of shares of common stock outstanding for the reporting period. Diluted consolidated net income per share reflects the potential dilution that could occur if securities, options or other contracts to issue shares of common stock were exercised or converted into shares of common stock and is based upon the weighted average number of shares of common stock and common equivalent shares outstanding during the reporting period. For periods in which the Company reports a net loss, diluted consolidated net loss per share is the same as basic net loss per share because the effect of all potentially dilutive securities would be anti-dilutive. Common equivalent shares related to stock options and nonvested stock awards and units issued by the Company are calculated using the treasury stock method. The outstanding stock options and nonvested stock awards and units issued by the Company represent the only dilutive effects on diluted consolidated net income per share. The Company’s convertible senior notes and related warrants are calculated using the net share settlement option under the if converted method. Because the principal amount of the convertible senior notes will be settled in cash with any excess conversion value settled in cash or shares of common stock, the convertible senior notes have been excluded from the computation of diluted consolidated net income (loss) per share because the average market price of the Company’s common stock during the reporting period did not exceed the conversion price of $156.93 as of May 02, 2025. Warrants were excluded from the computation of diluted consolidated net income (loss) per share since the warrants’ strike price of $219.71 was greater than the average market price of the Company’s common stock during the period. See Note 4 for additional information regarding the Company’s convertible senior notes.

The following table reconciles the components of diluted consolidated net income (loss) per share computations for the specified periods:

	Quarter Ended				Nine Months Ended
	May 02,		April 26,		May 02,		April 26,
	2025		2024		2025		2024
Net income (loss) per share numerator	$	12,574	$	(9,199)	$	39,625	$	22,791
Net income (loss) per share denominator:
Basic weighted average shares		22,264,782		22,201,964		22,246,936		22,188,191
Add potential dilution:
Nonvested stock awards and units and stock options		194,499		—		188,381		119,455
Diluted weighted average shares		22,459,281		22,201,964		22,435,317		22,307,646

10.