EXHIBIT 11.1
PAYLESS SHOESOURCE, INC. AND SUBSIDIARIES
COMPUTATION OF NET EARNINGS PER SHARE
(UNAUDITED)
(dollars and shares in thousands, except per share)
13 Weeks Ended | ||||||||
May 1, 2004 | May 3, 2003 | |||||||
Diluted Computation | ||||||||
Net earnings | $ | 13,823 | $ | 14,091 | ||||
Weighted average common shares outstanding | 67,926 | 67,986 | ||||||
Net effect of dilutive stock options and unearned restricted stock based on the treasury stock method | 112 | 96 | ||||||
Outstanding shares for diluted earnings per share | 68,038 | 68,082 | ||||||
Diluted earnings per share | $ | 0.20 | $ | 0.21 | ||||
Basic Computation: | ||||||||
Net earnings | $ | 13,823 | $ | 14,091 | ||||
Weighted average common shares outstanding | 67,926 | 67,986 | ||||||
Basic earnings per share | $ | 0.20 | $ | 0.21 | ||||
Basic earnings per share are computed by dividing net earnings by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share include the effect of conversions of stock options and unearned restricted stock. The calculation of diluted earnings per share for the thirteen-week period ended May 1, 2004, excludes the impact of 7,777,763 stock options, because to include them would be anti-dilutive.