Earnings per Share

9 Months Ended

Oct. 29, 2022

Earnings per Share

Earnings per Share

3. 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 third quarter of 2022 and 2021, there were 220,000 and 38,000 shares of nonvested restricted stock, respectively, excluded from the calculation of diluted earnings per share because of antidilution. For the thirty-nine weeks ended October 29, 2022 and October 30, 2021, there were 226,000 and 38,000 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:

	Thirteen Weeks Ended
	October 29, 2022	October 30, 2021
Weighted average number of common shares outstanding	8,145,318	8,706,219
Incremental shares from assumed vesting of nonvested restricted stock	—	80,668
Weighted average number of common shares and common stock equivalents outstanding	8,145,318	8,786,887

	Thirty-Nine Weeks Ended
	October 29, 2022	October 30, 2021
Weighted average number of common shares outstanding	8,236,836	9,081,240
Incremental shares from assumed vesting of nonvested restricted stock	—	97,325
Weighted average number of common shares and common stock equivalents outstanding	8,236,836	9,178,565