Earnings (Loss) per Share

3 Months Ended

Apr. 29, 2023

The computation of basic and diluted net earnings (loss) per common share attributable to common stockholders is (in thousands, except per share data):


	Three Months Ended
		Apr 29, 2023		Apr 30, 2022
Net earnings (loss) attributable to Guess?, Inc.		$	(11,805)	$	7,970
Less net earnings attributable to nonvested restricted stockholders		164		56
Net earnings (loss) attributable to common stockholders		(11,969)		7,914
Add interest expense related to the convertible senior notes1		—		902
Net earnings (loss) attributable to common stockholders used in diluted computations		$	(11,969)	$	8,816

Weighted average common shares used in basic computations		54,348		61,052

Effect of dilutive securities:
Stock options and restricted stock units2		—		1,666
Convertible senior notes1		—		11,751
Weighted average common shares used in diluted computations		54,348		74,469

Net earnings (loss) per common share attributable to common stockholders:
Basic		$	(0.22)	$	0.13
Diluted		$	(0.22)	$	0.12

______________________________________________________________________

Notes:

1 During the three months ended April 29, 2023, there were 12,834,308 potentially dilutive shares related to the convertible senior notes that were not included in the computation of diluted weighted average common shares and common equivalent shares outstanding because their effect would have been antidilutive given the Company’s net loss.

2 During the three months ended April 29, 2023, there were 1,351,331 potentially dilutive shares related to stock options and restricted stock units that were not included in the computation of diluted weighted average common shares and common equivalent shares outstanding because their effect would have been antidilutive given the Company’s net loss.

During the three months ended April 29, 2023 and April 30, 2022, equity awards granted for 1,091,454 and 1,183,823 shares, respectively, of the Company’s common stock were outstanding but were excluded from the computation of diluted weighted average common shares and common equivalent shares outstanding because the assumed proceeds resulted in these awards being antidilutive. For each of the three months ended April 29, 2023 and April 30, 2022, the Company excluded 300,000 nonvested stock units which were subject to the achievement of market-based vesting conditions from the computation of diluted weighted average common shares and common equivalent shares outstanding because these conditions were not achieved as of April 29, 2023 and April 30, 2022.

Warrants related to the 2.00% convertible senior notes due April 2024 (the “2024 Notes”) to purchase approximately 4.6 million and 11.6 million shares of the Company’s common shares at an initial strike price of $46.88 per share were outstanding as of April 29, 2023 and April 30, 2022, respectively. Warrants related to the 3.75% convertible senior notes due April 2028 (the “2028 Notes”, and collectively referred to as the “Notes”) to purchase approximately 11.1 million shares of the Company’s common shares at an initial strike price of $41.80 per share were outstanding as of April 29, 2023. These warrants were excluded from the computation of diluted net earnings per share since the warrants’ adjusted strike price was greater than the average market price of the Company’s common stock during the three months ended April 29, 2023 and April 30, 2022. See Note 10 for more information regarding the Notes.