(Loss) Earnings Per Share

6 Months Ended

Jul. 30, 2011

(Loss) Earnings Per Share

8. (Loss) Earnings Per Share

Basic (loss) earnings per share is computed by dividing (loss) income available for common stockholders by the weighted average number of common shares outstanding. During periods of income, participating securities are allocated a proportional share of income determined by dividing total weighted average participating securities by the sum of the total weighted average common shares and participating securities (the “two-class method”). The Company’s nonvested stock and director restricted stock units (“RSUs”) participate in any dividends declared by the Company and are therefore considered participating securities. Participating securities have the effect of diluting both basic and diluted earnings per share during periods of income. During periods of loss, no loss is allocated to participating securities since they have no contractual obligation to share in the losses of the Company. Diluted earnings per share is computed after giving consideration to the dilutive effect of warrants, stock options and management RSUs that are outstanding during the period, except where such non-participating securities would be anti-dilutive.

Basic and diluted (loss) earnings per share from continuing operations were computed as follows:

	Thirteen Weeks Ended					Twenty-Six Weeks Ended
	July 30,			July 31,		July 30,			July 31,
	2011			2010		2011			2010
Basic (loss) earnings per share:	(In thousands, except per share data)
(Loss) income from continuing operations	$	(37,354	)	$	521	$	(36,446	)	$	(6,575	)
Less: income associated with participating securities		—			15		—			—
(Loss) income (loss) available for common stockholders	$	(37,354	)	$	506	$	(36,446	)	$	(6,575	)
Weighted average shares outstanding		69,074			68,338		68,891			63,105
Basic (loss) earnings per share — continuing operations	$	(0.54	)	$	0.01	$	(0.53	)	$	(0.10	)

	Thirteen Weeks Ended					Twenty-Six Weeks Ended
	July 30,			July 31,		July 30,			July 31,
	2011			2010		2011			2010
Diluted (loss) earnings per share:	(In thousands, except per share data)
(Loss) income from continuing operations	$	(37,354	)	$	521	$	(36,446	)	$	(6,575	)
Less: income associated with participating securities		—			15		—			—
(Loss) income available for common stockholders	$	(37,354	)	$	506	$	(36,446	)	$	(6,575	)
Weighted average shares outstanding		69,074			68,338		68,891			63,105
Effect of dilutive securities		—			1,182		—			—
Diluted weighted average shares outstanding		69,074			69,520		68,891			63,105
Diluted (loss) earnings per share - continuing operations	$	(0.54	)	$	0.01	$	(0.53	)	$	(0.10	)

The following common stock equivalents were excluded from the calculation of (loss) earnings per share because their inclusion would have been anti-dilutive for the thirteen and twenty-six week periods ended July 30, 2011 and July 31, 2010:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	July 30,		July 31,		July 30,		July 31,
	2011		2010		2011		2010
	(In thousands)
Nonvested stock		1,678		2,013		1,678		2,013
Nonvested director RSUs		42		18		42		18
Nonvested management RSUs		—		—		—		403
Stock options		5,824		6,435		5,824		8,207
Warrants		19,152		18,243		19,152		19,152
		26,696		26,709		26,696		29,793