EXHIBIT 11 CANDIE'S, INC. AND SUBSIDIARIES COMPUTATIONS OF EARNINGS PER SHARE FOR THE THREE MONTHS ENDED (MODIFIED TREASURY STOCK METHOD) April 30, (1) 1997 1996 ----- ---- AVERAGE SHARES OUTSTANDING 9,974,634 8,750,424 NET EFFECT OF DILUTIVE STOCK OPTIONS-BASED ON THE MODIFIED TREASURY STOCK METHOD USING AVERAGE MARKET PRICE WHICH IS GREATER THAN QUARTER-END MARKET PRICE 6,451,399 -- ----------- ----------- TOTAL COMMON STOCK AND EQUIVALENT SHARES 16,426,033 8,750,424 =========== =========== NET INCOME (LOSS) $ 823,338 $ (423,338) ADD: INCOME EARNED, NET OF FEDERAL INCOME TAX EFFECT 198,955 -- ----------- ----------- TOTAL EPS INCOME (LOSS) $ 1,022,293 $ (423,338) =========== =========== PER SHARE AMOUNT (PRIMARY AND FULLY DILUTED) $ .06 $ (.05) =========== =========== (1) NO ADDITIONAL INCOME(EARNINGS FROM INVESTING THE EXCESS PROCEEDS UPON THE EXERCISE OF COMMON STOCK EQUIVALENTS) NOR COMMON STOCK EQUIVALENTS WERE INCLUDED IN THE CALCULATION OF NET LOSS PER SHARE FOR 1996 BECAUSE THE RESULTS WOULD HAVE BEEN ANTIDILUTIVE. 14