Note 5 – Net Income per Common Share

Basic net income per common share has been computed using the weighted average number of common shares outstanding during each period. Diluted net income per share 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 1.1 million shares of common stock have been excluded from the diluted net income per share calculation for the nine months ended October 31, 2017. For the nine months ended October 31, 2017, the Company issued 179,302 shares of common stock and utilized 261,208 shares of treasury stock in connection with the exercise or vesting of equity awards. For the nine months ended October 31, 2016, the Company issued 194,618 shares of common stock and utilized 291,181 shares of treasury stock in connection with the exercise or vesting of equity awards.

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

	Three Months Ended				Nine Months Ended
	October 31,				October 31,
	2017		2016		2017		2016
	(In thousands, except per share amounts)
Net income attributable to G-III	$	81,625	$	70,564	$	62,666	$	72,042
Basic net income per share:
Basic common shares		48,846		45,918		48,729		45,713

Basic net income per share	$	1.67	$	1.54	$	1.29	$	1.58

Diluted net income per share:
Basic common shares		48,846		45,918		48,729		45,713
Diluted restricted stock awards and stock options		682		984		681		1,234
Diluted common shares		49,528		46,902		49,410		46,947

Diluted net income per share	$	1.65	$	1.50	$	1.27	$	1.53