Net Income per Common Share

6 Months Ended

Jul. 31, 2016

Note 4 – Net Income (Loss) per Common Share

Basic net income (loss) per common share has been computed using the weighted average number of common shares outstanding during each period. Diluted net income per share, when applicable, is computed using the weighted average number of common shares and potential dilutive common shares, consisting of unvested restricted stock awards and stock options outstanding, during the period. In addition, all share based payments outstanding that vest based on the achievement of performance and/or market price conditions, and for which the respective performance and/or market price conditions have not been achieved, have been excluded from the diluted per share calculation. Approximately 349,000 shares of common stock have been excluded from the diluted net income per share calculation for the six months ended July 31, 2016. For the six months ended July 31, 2016 and 2015, 195,156 and 262,830 shares of common stock, respectively, were issued in connection with the exercise or vesting of equity awards.

On February 1, 2016, the Company adopted the Accounting Standard Update 2016-09 (see Note 7 for further details). The new guidance prescribes that excess tax benefits are no longer recognized in additional paid in capital. The assumed proceeds from applying the treasury stock method when computing net income (loss) per share is amended to exclude the amount of excess tax benefits that would be recognized in additional paid-in capital. This change in accounting results in approximately 303,000 additional diluted common shares being included in the diluted net income per share calculation for the six months ended July 31, 2016.

The following table reconciles the numerators and denominators used in the calculation of basic and diluted net income (loss) per share:

	Three Months Ended July 31					Six Months Ended July 31
	2016			2015		2016		2015
	(In thousands, except per share amounts)

Net income (loss) attributable to G-III	$	(1,293	)	$	12,453	$	1,478	$	19,213
Basic net income (loss) per share:
Basic common shares		45,667			45,073		45,601		45,020
Basic net income (loss) per share	$	(0.03	)	$	0.28	$	0.03	$	0.43

Diluted net income per share:
Basic common shares		45,667			45,073		45,601		45,020
Diluted Restricted stock awards and stock options		—			1,289		1,366		1,269
Diluted common shares		45,667			46,362		46,967		46,289
Diluted net income per share	$	(0.03	)	$	0.27	$	0.03	$	0.42