EXHIBIT 11
NINE WEST GROUP INC. AND SUBSIDIARIES
Computation of Earnings Per Share
(in thousands except per share data)
Transition
1996 1995(1) Period(2) 1994(2)
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PRIMARY EARNINGS PER SHARE
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Computation for Consolidated Statements of Income
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Income from continuing operations available for common stock.... $83,644 $18,976 $ 941 $63,890
Loss on disposal of discontinued operation...................... (2,636) - - -
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Net income.................................................... $81,008 $18,976 $ 941 $63,890
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Shares:
Weighted average number of common shares outstanding............ 35,647 35,011 34,655 34,555
Add:
Net effect of dilutive stock options based on the
treasury stock method........................................ 1,052 696 - -
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Weighted average number of shares outstanding
including common stock equivalents............................. 36,699 35,707 34,655 34,555
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Primary earnings per share:
Income from continuing operations, as adjusted................ $ 2.28 $ 0.53 $ 0.03 $ 1.85
Loss on disposal of discontinued operation, as adjusted....... (0.07) - - -
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Net income.................................................. $ 2.21 $ 0.53 $ 0.03 $ 1.85
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FULLY DILUTED EARNINGS PER SHARE
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Computation for Consolidated Statements of Income
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Reconciliation of net income to amount used for fully diluted
computation in Consolidated Statements of Income:
Income from continuing operations per primary
calculation above............................................ $83,644
Add:
Interest on 5.5% convertible debentures, net of tax effect.. 4,063
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Adjusted income from continuing operations................ 87,707
Loss on disposal of discontinued operation................ (2,636)
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Net income.............................................. $85,071
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Reconciliation of weighted average common shares outstanding
to amount used for fully diluted computation in Consolidated
Statements of Income:
Weighted average number of common shares outstanding.......... 35,647
Add:
Weighted average shares issuable from assumed exercise of
5.5% convertible debentures................................ 1,855
Net effect of dilutive stock options based on the treasury
stock method............................................... 1,351
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Fully diluted shares outstanding.......................... 38,853
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Fully diluted earnings per share:
Income from continuing operations............................... $ 2.26
Loss on disposal of discontinued operation...................... (0.07)
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Net Income.................................................... $ 2.19
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(1) Fully diluted earnings per share are equal to primary earnings per share for the 1995 period.
(2) Primary earnings per share for 1994 and the Transition Period, as disclosed on the face of the Consolidated
Statements of Income, do not include the effect of common stock equivalents, as their dilutive effect was
less than 3%.