1
EXHIBIT 11
PAYLESS SHOESOURCE, INC.
COMPUTATION OF NET EARNINGS PER SHARE
13 Weeks Ended 39 Weeks Ended
-------------------- -------------------
Oct. 30, Oct. 31, Oct. 30, Oct. 31,
(Thousands, except per share) 1999 1998 1999 1998
--------- --------- --------- ---------
Basic Computation:
Net earnings $ 34,618 $ 33,688 $121,232 $120,747
Weighted average common
shares outstanding 30,926 34,377 31,591 36,060
-------- -------- -------- --------
Basic earnings per share $ 1.12 $ 0.98 $ 3.84 $ 3.35
======== ======== ======== ========
Diluted Computation:
Net earnings $ 34,618 $ 33,688 $121,232 $120,747
Weighted average common
shares outstanding 30,926 34,377 31,591 36,060
Net effect of dilutive stock
options based on the treasury
stock method 161 111 185 372
-------- -------- -------- --------
Outstanding shares for diluted
earnings per share 31,087 34,488 31,776 36,432
======== ======== ======== ========
Diluted earnings per share $ 1.11 $ 0.98 $ 3.82 $ 3.31
======== ======== ======== ========
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.