EXHIBIT 11.1 STATEMENT RE: COMPUTATION OF HISTORICAL EARNINGS PER COMMON SHARE PROFFITT'S, INC. AND SUBSIDIARIES (in thousands, except per share data) Year Ended February 3 January 28 January 29 1996 1995 1994 PRIMARY: Average shares outstanding 18,995 18,575 17,222 Net effect of dilutive stock options -- based on the treasury stock method using average market price 377 347 445 ______ ______ ______ TOTAL 19,372 18,922 17,667 ====== ====== ====== Income (loss) before extraordinary loss and cumulative effect of changes in accounting methods ($6,399) $29,744 $19,245 ________ _______ _______ Less Preferred Dividends (1,950) (1,694) Income (loss) avail- able to common share- holders before extra- ordinary loss and cumulative effect of changes in accounting methods (8,349) 28,050 19,245 Extraordinary Loss (2,060) (1,088) Cumulative effect of changes in accounting methods 1,904 _________ _______ ________ Net income (loss) available to common shareholders ($10,409) $28,050 $20,061 ========= ======= ======= Earnings (loss) per common share before extraordinary loss and cumulative effect of changes in accounting methods ($0.43) $1.48 $1.09 Extraordinary loss (0.11) (0.06) Cumulative effect of changes in accounting methods 0.11 __________ ________ _______ Primary earnings (loss) per share ($0.54) $1.48 $1.14 ========= ======= ======= FULLY DILUTED: Average shares outstanding 18,995 18,575 17,222 Net effect of dilutive stock options - based on the treasury stock method using year-end market price if higher than average price 386 347 445 Assumed conversion of 8% subordinated debenture 52 Assumed conversion of 4.75% subordinated debenture 2,020 2,020 512 Assumed conversion of preferred stock 1,422 1,228 ______ _______ ______ TOTAL 22,823 22,170 18,231 ====== ====== ====== Income (loss) before interest adjustments, extraordinary loss, and cumulative effect of changes in accounting methods ($6,399) $29,744 $19,245 Add 8% convertible subordinated debenture interest, net of federal income tax effect 41 Add 4.75% convertible subordinated debenture interest, net of federal income tax effect 2,500 2,500 633 _______ _______ _______ Adjusted net income (loss) before extra- ordinary loss and cumulative effect of changes in accounting methods ($3,899) $32,244 $19,919 Extraordinary loss (2,060) (1,088) Cumulative effect of changes in accounting methods 1,904 _______ _______ _______ Adjusted net income (loss) ($5,959) $32,244 $20,735 ======== ======= ======= Fully diluted earnings (loss) per common share before extra- ordinary loss and cumulative effect of changes in accounting methods ($0.17) $1.45 $1.09 Extraordinary loss (0.09) (0.06) Cumulative effect of changes in accounting methods 0.11 ________ _______ _______ Fully diluted earnings (loss) per share ($0.26) $1.45 $1.14 Note/For each year shown, dilution is less than 3%; therefore, no fully diluted presentation is needed.