Earnings per Share

9 Months Ended

Oct. 31, 2020

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. During loss periods, diluted loss 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. The Company includes as assumed proceeds the amount of compensation cost attributed to future services and not yet recognized. For the thirty-nine weeks ended October 31, 2020 and November 2, 2019, there were 150,000 and 139,000 shares of nonvested restricted stock, respectively, excluded from the calculation of diluted earnings per share because of antidilution. For the thirteen weeks ended October 31, 2020 and November 2, 2019, there were 134,000 and 147,000 shares of nonvested restricted stock, respectively, excluded from the calculation of diluted earnings per share because of antidilution.

The following table provides a reconciliation of the weighted 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:

	Thirty-Nine Weeks Ended
	October 31, 2020	November 2, 2019
Weighted average number of common shares outstanding	10,419,557	11,831,248
Incremental shares from assumed vesting of nonvested restricted stock	24,549	10,497
Weighted average number of common shares and common stock equivalents outstanding	10,444,106	11,841,745

	Thirteen Weeks Ended
	October 31, 2020	November 2, 2019
Weighted average number of common shares outstanding	10,364,842	11,635,707
Incremental shares from assumed vesting of nonvested restricted stock	36,311	—
Weighted average number of common shares and common stock equivalents outstanding	10,401,153	11,635,707