Earnings per Share

9 Months Ended

Oct. 28, 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				Nine Months Ended
	Oct 28, 2023		Oct 29, 2022		Oct 28, 2023		Oct 29, 2022
Net earnings attributable to Guess?, Inc.	$	55,701	$	21,835	$	82,929	$	53,767
Less net earnings attributable to nonvested restricted stockholders	672		260		1,066		511
Net earnings attributable to common stockholders	55,029		21,575		81,863		53,256
Add interest expense related to the convertible senior notes	2,779		1,026		6,826		2,960
Net earnings attributable to common stockholders used in diluted computations	$	57,808	$	22,601	$	88,689	$	56,216

Weighted average common shares used in basic computations	53,052		53,894		53,450		57,300

Effect of dilutive securities:
Stock options and restricted stock units	1,366		1,309		1,276		1,506
Convertible senior notes	15,913		11,899		13,372		11,899
Weighted average common shares used in diluted computations	70,331		67,102		68,098		70,705

Net earnings per common share attributable to common stockholders:
Basic	$	1.04	$	0.40	$	1.53	$	0.93
Diluted	$	0.82	$	0.34	$	1.30	$	0.80

During the three months ended October 28, 2023 and October 29, 2022, equity awards granted for 159,950 and 1,319,998 shares, respectively, of the Company’s common stock and for the nine months ended October 28, 2023 and October 29, 2022, equity awards granted for 1,011,089 and 1,261,633 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 nine months ended October 28, 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 October 28, 2023. For the three and nine months ended October 29, 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 October 29, 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 October 28, 2023 and October 29, 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 October 28, 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 nine months ended October 28, 2023 and October 29, 2022. See Note 10 for more information regarding the Notes.