EARNINGS (LOSS) PER SHARE

9 Months Ended

Oct. 01, 2023

Basic earnings (loss) per share is calculated by dividing net income (loss) by the weighted average shares outstanding during the period. Diluted earnings (loss) per share is calculated by adjusting the weighted average shares outstanding for the dilutive effect of outstanding equity awards for the period using the treasury-stock method.

The following table sets forth the computation of earnings (loss) per common share for the periods indicated:


	Twelve Weeks Ended				Forty Weeks Ended
(in thousands, except per share amounts)	October 1, 2023		October 2, 2022		October 1, 2023		October 2, 2022
Numerator:
Net income (loss)	$	6,833	$	(11,893)	$	11,231	$	(40,141)




Denominator:
Weighted average shares outstanding, basic	113,584		1,327		43,244		1,314
Dilutive awards outstanding	4,129		—		2,722		—


Weighted average shares outstanding, diluted	117,713		1,327		45,966		1,314
Earnings (loss) per common share:
Basic	$	0.06	$	(8.96)	$	0.26	$	(30.54)
Diluted	$	0.06	$	(8.96)	$	0.24	$	(30.54)

The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted earnings (loss) per share as their impact would have been anti-dilutive for the periods indicated:


	Twelve Weeks Ended		Forty Weeks Ended
(in thousands)	October 1, 2023	October 2, 2022	October 1, 2023	October 2, 2022
Stock options	—	1,461	—	1,461
Restricted stock units	—	765	—	765
Preferred stock (as converted to common shares)	—	95,204	—	95,204
Total common stock equivalents	—	97,430	—	97,430

During the twelve and forty weeks ended October 2, 2022, the Company’s potentially dilutive securities, which include preferred stock and outstanding awards under the 2015 Plan, have been excluded from the computation of diluted earnings per share as the effect would be anti-dilutive in a net loss position.