1 EXHIBIT 11.1 PAYLESS SHOESOURCE, INC. COMPUTATION OF NET EARNINGS PER SHARE 13 Weeks Ended 26 Weeks Ended -------------- -------------- August 4, July 29, August 4, July 29, (Thousands, except per share) 2001 2000 2001 2000 --------- --------- --------- --------- Basic Computation: Net earnings $36,400 $48,799 $66,050 $74,266 Weighted average common shares outstanding 22,250 22,306 22,207 25,377 ------- ------- ------- ------- Basic earnings per share $ 1.64 $ 2.19 $ 2.97 $ 2.93 ======= ======= ======= ======= Diluted Computation: Net earnings $36,400 $48,799 $66,050 $74,266 Weighted average common shares outstanding 22,250 22,306 22,207 25,377 Net effect of dilutive stock options based on the treasury stock method 529 302 576 205 ------- ------- ------- ------- Outstanding shares for diluted earnings per share 22,779 22,608 22,783 25,582 ======= ======= ======= ======= Diluted earnings per share $ 1.60 $ 2.16 $ 2.90 $ 2.90 ======= ======= ======= ======= 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.