Earnings Per Common Share

6 Months Ended

Aug. 03, 2024

Basic earnings per common share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings 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, which include stock-based awards, such as restricted stock and stock options, and shares the Company could have been obligated to issue from its convertible senior notes due 2025 (“Convertible Senior Notes”) and warrants prior to their retirement in the first quarter of fiscal 2023.

Dilutive potential common shares for the Company’s stock-based awards and warrants are determined using the treasury stock method, while the dilutive effect of the Convertible Senior Notes on the Company’s diluted earnings per common share was calculated using the “if-converted method.” Dilutive potential common shares are excluded from the computation of earnings per share if their effect is anti-dilutive.

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


	13 Weeks Ended				26 Weeks Ended
	August 3, 2024		July 29, 2023		August 3, 2024		July 29, 2023
Numerator:
Net income for earnings per common share – basic	$	362,230	$	244,331	$	637,525	$	548,980
Effect of dilutive securities
Interest expense associated with Convertible Senior Notes, net of tax	—		—		—		337
Net income for earnings per common share – diluted	$	362,230	$	244,331	$	637,525	$	549,317

Denominator:
Weighted average common shares outstanding - basic	80,432		84,142		80,507		83,607
Dilutive effect of stock-based awards	2,382		2,641		2,573		3,325
Dilutive effect of warrants	—		—		—		508
Dilutive effect of Convertible Senior Notes	—		—		—		784
Weighted average common shares outstanding - diluted	82,814		86,783		83,080		88,224

Earnings per common share:
Basic	$	4.50	$	2.90	$	7.92	$	6.57
Diluted	$	4.37	$	2.82	$	7.67	$	6.23

Stock-based awards excluded from diluted shares	1		312		35		222