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EXHIBIT 11
PAYLESS SHOESOURCE, INC.
COMPUTATION OF NET EARNINGS PER SHARE
13 Weeks Ended 26 Weeks Ended
July 31, August 1, July 31, August 1,
(Thousands, except per share) 1999 1998 1999 1998
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Basic Computation:
Net earnings $ 51,331 $ 49,301 $ 86,614 $ 87,059
Weighted average common
shares outstanding 31,605 36,495 31,923 36,901
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Basic earnings per share $ 1.62 $ 1.35 $ 2.71 $ 2.36
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Diluted Computation:
Net earnings $ 51,331 $ 49,301 $ 86,614 $ 87,059
Weighted average common
shares outstanding 31,605 36,495 31,923 36,901
Net effect of dilutive stock
options based on the treasury
stock method 241 460 201 462
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Outstanding shares for diluted
earnings per share 31,846 36,955 32,124 37,363
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Diluted earnings per share $ 1.61 $ 1.33 $ 2.70 $ 2.33
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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.