1 Exhibit 11 CML GROUP, INC. AND SUBSIDIARIES COMPUTATION OF EARNINGS (LOSS) PER SHARE For the periods ended October 28, 1995 and October 29, 1994 Three Months Ended --------------------------------- Oct. 28, 1995 Oct. 29, 1994 ------------- ------------- Primary earnings (loss) per share: Weighted average number of shares outstanding: Common 49,224,104 49,985,787 Shares deemed outstanding from the assumed exercise of stock options and from deferred compensation awards 547,128 818,650 ------------ ----------- Total 49,771,232 50,804,437 ============ =========== Net income (loss) $(15,018,000) $ 881,000 ============ =========== Primary earnings (loss) per share $ (0.30) $ 0.02 ============ =========== Fully diluted earnings (loss) per share: Weighted average number of shares outstanding, as above 49,771,232 50,804,437 Shares deemed outstanding from the assumed conversion of convertible subordinated debentures 1,604,877 2,218,649 Additional shares deemed outstanding from the assumed exercise of stock options --- --- ------------ ----------- Total 51,376,109 53,023,086 ============ =========== Additional income from the elimination of the interest cost of the convertible subordinated debentures, net of income tax effect $ 374,067 $ 512,407 Fully diluted earnings (loss) per share $ (0.30) $ 0.02 ============ =========== 29