EARNINGS (LOSS) PER SHARE

3 Months Ended

May 02, 2020

EARNINGS (LOSS) PER SHARE

EARNINGS PER SHARE

8. EARNINGS (LOSS) PER SHARE

The Company’s unvested restricted stock awards contain non-forfeitable rights to dividends and meet the criteria of a participating security as defined by ASC 260, “Earnings Per Share”. In applying the two-class method, net income is allocated to both common and participating securities based on their respective weighted-average shares outstanding for the period. Basic earnings (loss) per share is computed by dividing net income (loss) allocated to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing income available to common shareholders by the weighted-average common shares outstanding plus the potential dilutive impact from stock options and restricted stock units. Common equivalent shares are excluded from the

computation if their effect is anti-dilutive. During the first quarter of fiscal 2020, we incurred a net loss and therefore all common stock equivalents were anti-dilutive and excluded from the diluted net loss per share calculation. As a result, the basic and dilutive losses per common share are the same for the first quarter of fiscal 2020. There were 12.7 million and 11.1 million anti-dilutive shares during the first quarters of fiscal 2020 and fiscal 2019, respectively.

The following table sets forth the computation of basic and diluted (loss) earnings per common share (in thousands, except per share data):

	13 Weeks Ended
	May 2,		May 4,
	2020		2019
Basic (loss) earnings per common share:
Net (loss) income	$	(63,505)	$	37,691
Less income related to unvested restricted shares		—		(39)
(Loss) income available to common shareholders - Basic	$	(63,505)	$	37,652
Weighted-average common shares outstanding - Basic		146,865		157,749
Basic (loss) earnings per common share	$	(0.43)	$	0.24
Diluted (loss) earnings per common share:
Net (loss) income	$	(63,505)	$	37,691
Less income related to unvested restricted shares		—		(39)
(Loss) income available to common shareholders - Diluted	$	(63,505)	$	37,652
Weighted-average common shares outstanding - Basic		146,865		157,749
Effect of dilutive stock options and restricted stock units		—		112
Weighted-average common shares outstanding - Diluted		146,865		157,861
Diluted (loss) earnings per common share	$	(0.43)	$	0.24