Earnings per Share

6 Months Ended

Jul. 30, 2011

Earnings per Share

Earnings per Share

4. Earnings per Share

Basic earnings per common share amounts are calculated using the weighted average number of common shares outstanding for the period. Diluted earnings per common share amounts are calculated using the weighted average number of common shares outstanding plus the additional dilution for all potentially dilutive securities, such as nonvested restricted stock and stock options.  During loss periods, diluted earnings per share amounts are based on the weighted average number of common shares outstanding because the inclusion of common stock equivalents would be antidilutive.

The dilutive effect of stock-based compensation arrangements is accounted for using the treasury stock method.  This method assumes that the proceeds the Company receives from the exercise of stock options are used to repurchase common shares in the market.  The Company includes as assumed proceeds the amount of compensation cost attributed to future services and not yet recognized, and the amount of tax benefits, if any, that would be credited to additional paid-in capital assuming exercise of outstanding options and vesting of nonvested restricted stock.  For the twenty-six weeks ended July 30, 2011 and July 31, 2010, there were 49,000 and 55,000 options outstanding, respectively, to purchase shares of common stock excluded from the calculation of diluted earnings per share because of antidilution.   For the thirteen weeks ended July 30, 2011 and July 31, 2010, there were 49,000 and 51,000 options outstanding, respectively, to purchase shares of common stock excluded from the calculation of diluted earnings per share because of antidilution.

The following tables provide a reconciliation of the average number of common shares outstanding used to calculate basic earnings per share to the number of common shares and common stock equivalents outstanding used in calculating diluted earnings per share for the twenty-six and thirteen week periods ended July 30, 2011 and July 31, 2010.  There were no common stock equivalents used in the calculation of EPS for the thirteen weeks ended July 30, 2011 and July 31, 2010 due to losses during these periods:

	Twenty-six Weeks Ended
	July 30, 2011	July 31, 2010
Average number of common shares outstanding	14,574,935	14,486,072
Incremental shares from assumed exercises of stock options	9,699	20,025
Incremental shares from assumed vesting of nonvested restricted stock	—	4,073
Average number of common shares and common stock equivalents outstanding	14,584,634	14,510,170

	Thirteen Weeks Ended
	July 30, 2011	July 31, 2010
Average number of common shares outstanding	14,595,985	14,514,528
Incremental shares from assumed exercises of stock options	—	—
Incremental shares from assumed vesting of nonvested restricted stock	—	—
Average number of common shares outstanding	14,595,985	14,514,528