Earnings per Share and Shareholders' Equity

9 Months Ended

Oct. 29, 2016

Earnings per Share and Shareholders' Equity

EARNINGS PER SHARE AND SHAREHOLDERS' EQUITY

Earnings per Share- Basic earnings per share is based on net income and a simple weighted average of common shares outstanding. Diluted earnings per share reflects the potential dilution of common shares adjusted for outstanding stock options, restricted stock units ("RSUs") and performance-based restricted stock units ("PSUs") calculated using the treasury stock method.

The following table is a reconciliation of the number of shares used in the calculation of diluted earnings per share computations for the periods presented:



	Three months ended		Nine months ended
	October 29, 2016	October 31, 2015	October 29, 2016	October 31, 2015

	(in thousands)
Weighted average shares outstanding	82,026	87,493	82,011	88,244
Assumed exercise of dilutive stock options	339	640	407	751
Assumed exercise of dilutive RSUs and PSUs	172	236	225	234
Number of shares for computation of diluted earnings per share	82,537	88,369	82,643	89,229

Options, RSUs and PSUs- The number of potential common shares that were not included in the computation of dilutive earnings per share because the effect would be anti-dilutive was approximately 3.1 million and 2.1 million for the three months ended October 29, 2016 and October 31, 2015, respectively, and 3.3 million and 1.8 million for the nine months ended October 29, 2016 and October 31, 2015, respectively.

Shareholders' Equity- During the three and nine months ended October 29, 2016, DSW Inc. repurchased a total of 2.0 million Class A common shares at a cost of $42.7 million, with $40.8 million remaining under the share repurchase program, which may be suspended, modified or discontinued at any time. The Company has no obligation to repurchase any amount of its common shares under the program. Shares will be repurchased on the open market at times and in amounts considered appropriate by the Company based on price and market conditions. See Note 16 for discussion on additional share repurchase activity that occurred subsequent to October 29, 2016.