Earnings Per Common Share

9 Months Ended

Nov. 02, 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				39 Weeks Ended
	November 2, 2024		October 28, 2023		November 2, 2024		October 28, 2023
Numerator:
Net income for earnings per common share – basic	$	227,813	$	201,106	$	865,338	$	750,086
Effect of dilutive securities
Interest expense associated with Convertible Senior Notes, net of tax	—		—		—		337
Net income for earnings per common share – diluted	$	227,813	$	201,106	$	865,338	$	750,423

Denominator:
Weighted average common shares outstanding - basic	80,404		81,772		80,473		82,995
Dilutive effect of stock-based awards	2,372		2,519		2,506		3,057
Dilutive effect of warrants	—		—		—		338
Dilutive effect of Convertible Senior Notes	—		—		—		523
Weighted average common shares outstanding - diluted	82,776		84,291		82,979		86,913

Earnings per common share:
Basic	$	2.83	$	2.46	$	10.75	$	9.04
Diluted	$	2.75	$	2.39	$	10.43	$	8.63

Stock-based awards excluded from diluted shares	2		302		24		249