1 Exhibit 11 PAYLESS SHOESOURCE, INC. COMPUTATION OF NET EARNINGS PER SHARE 13 Weeks Ended 26 Weeks Ended -------------------- -------------------- July 29, July 31, July 29, July 31, (Thousands, except per share) 2000 1999 2000 1999 --------- --------- --------- --------- Basic Computation: - ----------------- Net earnings $ 48,799 $ 51,331 $ 74,266 $ 86,614 Weighted average common shares outstanding 22,306 31,605 25,377 31,923 -------- -------- -------- -------- Basic earnings per share $ 2.19 $ 1.62 $ 2.93 $ 2.71 ======== ======== ======== ======== Diluted Computation: - ------------------- Net earnings $ 48,799 $ 51,331 $ 74,266 $ 86,614 Weighted average common shares outstanding 22,306 31,605 25,377 31,923 Net effect of dilutive stock options based on the treasury stock method 302 241 205 201 -------- -------- -------- -------- Outstanding shares for diluted earnings per share 22,608 31,846 25,582 32,124 ======== ======== ======== ======== Diluted earnings per share $ 2.16 $ 1.61 $ 2.90 $ 2.70 ======== ======== ======== ======== Note: Basic earnings per share is computed by dividing net earnings by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share includes the effect of conversions of options.