Earnings per Share

6 Months Ended

Jul. 29, 2023

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


	Three Months Ended				Six Months Ended
	Jul 29, 2023		Jul 30, 2022		Jul 29, 2023		Jul 30, 2022
Net earnings attributable to Guess?, Inc.	$	39,033	$	23,962	$	27,228	$	31,932
Less net earnings attributable to nonvested restricted stockholders	502		264		392		264
Net earnings attributable to common stockholders	38,531		23,698		26,836		31,668
Add interest expense related to the convertible senior notes	2,743		988		3,159		1,925
Net earnings attributable to common stockholders used in diluted computations	$	41,274	$	24,686	$	29,995	$	33,593

Weighted average common shares used in basic computations	52,951		56,954		53,649		59,003

Effect of dilutive securities:
Stock options and restricted stock units	1,075		1,528		1,222		1,623
Convertible senior notes	15,843		11,817		10,737		11,817
Weighted average common shares used in diluted computations	69,869		70,299		65,608		72,443

Net earnings per common share attributable to common stockholders:
Basic	$	0.73	$	0.42	$	0.50	$	0.54
Diluted	$	0.59	$	0.35	$	0.46	$	0.46

During the three months ended July 29, 2023 and July 30, 2022, equity awards granted for 990,262 and 1,209,255 shares, respectively, of the Company’s common stock and for the six months ended July 29, 2023 and July 30, 2022, equity awards granted for 1,035,126 and 1,294,538 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 the three and six months ended July 29, 2023, the Company excluded 640,042 nonvested stock units which were subject to the achievement of performance-based or 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 July 29, 2023. For the three and six months ended July 30, 2022, there were 594,985 nonvested stock units subject to the achievement of performance-based or market-based vesting conditions that were excluded from the computation of diluted weighted average common shares and common equivalent shares outstanding as the respective conditions were not achieved as of July 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 July 29, 2023 and July 30, 2022, respectively. Warrants related to the 3.75% convertible senior notes due April 2028 (the “2028 Notes”, and together with the 2024 Notes, 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 July 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 and six months ended July 29, 2023 and July 30, 2022. See Note 10 for more information regarding the Notes.