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 ------------------------------ 2/1/97 2/3/96 1/28/95 --------- --------- --------- PRIMARY: Average shares outstanding 24,741 22,780 22,699 Net effect of dilutive stock options - based on the treasury stock method using average market price 822 377 347 ------ ------ ------ Primary weighted average common shares 25,564 23,157 23,046 ======= ======= ======= Income before extraordinary loss $ 37,399 $ 641 $37,488 Less preferred dividends (796) (1,950) (1,694) Less payment for early conversion of preferred stock (3,032) ------- ------- ------- Income (loss) available to common shareholders before extraordinary loss 33,571 (1,309) 35,754 Extraordinary loss (2,060) ------- ------- ------- Net income (loss) available to common shareholders $ 33,571 $(3,369) $(35,754) ======== ======== ======== Earnings (loss) per common share before extraordinary loss $ 1.31 $(0.06) 1.55 Extraordinary Loss (0.09) -------- -------- -------- Primary earnings (loss) per share $1.31 $(0.15) $1.55 ======== ======== ======== On June 28, 1996, the Company converted 600 shares of Series A Preferred Stock ("preferred stock") into 1,422 shares of Proffitt's, Inc. common stock. In order to complete this early conversion of the preferred stock, the Company paid $3,032 to the holder of the preferred stock. Primary earnings per share are based on earnings available to common shareholders (net income reduced by preferred stock dividends and payment for early conversion) and the weighted average number of common shares and equivalents (stock options) outstanding. Common stock issued on June 28, 1996 for the conversion of preferred stock has been included in the weighted average number of shares outstanding subsequent to that date. EXHIBIT 11.1 (continued) STATEMENT RE: COMPUTATION OF HISTORICAL EARNINGS PER COMMON SHARE PROFFITT'S, INC. AND SUBSIDIARIES (IN THOUSANDS, EXCEPT PER SHARE DATA) Year Ended ------------------------------ 2/1/97 2/3/96 1/28/95 --------- --------- --------- FULLY DILUTED: Average shares outstanding 24,741 22,780 22,699 Net effect of dilutive stock options - based on the treasury stock method using year-end market price if higher than average price 876 386 347 Assumed conversion of 4.75% subordinated debenture 2,020 2,020 Assumed conversion of preferred stock 567 1,235 ------- ------- ------- Fully diluted weighted average common shares 28,204 23,166 26,301 Income before interest adjustments and extraordinary loss $ 37,399 $ 641 $37,448 Less preferred dividends (1,950) Add 4.75% convertible sub- ordinated debenture interest, net of federal income tax effect 2,500 2,500 ------- -------- -------- Adjusted net income (loss) before extraordinary loss and cumulative affect of changes in accounting methods 39,899 (1,309) 39,948 Extraordinary loss (2,060) ------- -------- -------- Adjusted net income (loss) $39,899 $(3,369) $39,948 ======== ======== ======== Fully diluted earnings (loss) per common share before extraordinary loss $ 1.41 $(0.06) $ 1.52 Extraordinary loss (0.09) ------- ------- -------- Fully diluted earnings (loss) per share $1.41 $(0.15) $ 1.52 ======= ======= ======== As a result of the June 28, 1996 preferred stock conversion and as required by generally accepted accounting principles, fully diluted earnings per share have been presented for the periods shown based upon an "as if the 1,422 shares issued in the conversion were outstanding from the beginning of the period" basis. X:\WPDATA\JAS\PROFFITT\SECURITI\10-K.497\EX-11-1.ASC