EXHIBIT 11.1
PAYLESS SHOESOURCE, INC. AND SUBSIDIARIES
COMPUTATION OF NET EARNINGS PER SHARE
(UNAUDITED)
(Dollars and shares in thousands, except per share)
<Table>
<Caption>
13 WEEKS ENDED 26 WEEKS ENDED
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AUGUST 2, 2003 AUGUST 3, 2002 AUGUST 2, 2003 AUGUST 3, 2002
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Diluted Computation:
Net earnings $ 5,184 $47,189 $19,275 $71,122
Weighted average common shares outstanding 68,026 67,859 68,006 67,550
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Net effect of dilutive stock options based
on the treasury stock method 41 552 50 770
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Outstanding shares for diluted earnings
per share 68,067 68,411 68,056 68,320
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Diluted earnings per share $ 0.08 $ 0.69 $ 0.28 $ 1.04
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Basic Computation:
Net earnings $ 5,184 $47,189 $19,275 $71,122
Weighted average common shares outstanding 68,026 67,859 68,006 67,550
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Basic earnings per share $ 0.08 $ 0.70 $ 0.28 $ 1.05
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</Table>
Note: Basic earnings per share are computed by dividing net earnings by the
weighted average number of shares of common stock outstanding during the period.
Diluted earnings per share include the effect of conversions of stock options.