Earnings (Loss) Per Common Share

3 Months Ended

May 01, 2021

Basic earnings (loss) per common share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per common share is computed based on the weighted average number of shares of common stock outstanding, plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include shares the Company could be obligated to issue from its Convertible Senior Notes and warrants, and stock-based awards, such as stock options and restricted stock.

The computations for basic and diluted earnings (loss) per common share were as follows for the periods presented (in thousands, except per share data)


	13 Weeks Ended
	May 1, 2021		May 2, 2020
Net income (loss)	$	361,756	$	(143,422)

Weighted average common shares outstanding - basic	84,750		83,734
Dilutive effect of stock-based awards	6,407		—
Dilutive effect of Convertible Senior Notes and warrants	14,853		—
Weighted average common shares outstanding - diluted	106,010		83,734

Earnings (loss) per common share - basic	$	4.27	$	(1.71)
Earnings (loss) per common share - diluted	$	3.41	$	(1.71)

Potentially dilutive shares are excluded from the computation of earnings (loss) per share if their effect is anti-dilutive. Anti-dilutive options and restricted stock awards excluded from the calculation of earnings (loss) per share for the 13 weeks ended May 1, 2021 and May 2, 2020 were 0.2 million and 7.8 million, respectively. Approximately 9.2 million shares included in weighted average common shares outstanding for the 13 weeks ended May 1, 2021 from the Convertible Senior Notes will be offset at settlement by shares delivered from the bond hedge purchased by the Company. The shares provided by the bond hedge are anti-dilutive; accordingly, they are not treated as a reduction to diluted weighted average shares outstanding during the quarter ended May 1, 2021.