1 EXHIBIT 11.1 DM MANAGEMENT COMPANY AND SUBSIDIARY QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER ENDED MARCH 29, 1997 COMPUTATION OF PER SHARE EARNINGS THREE MONTHS ENDED ----------------------- MARCH 29, MARCH 30, 1997 1996 ---------- --------- PRIMARY: Weighted-average shares of common stock outstanding during the period ... 4,509,925 4,287,436 Assumed exercise of options .............................................. 452,134 215,798 --------- --------- Weighted-average common and common equivalent shares outstanding ......... 4,962,059 4,503,234 ========= ========= THREE MONTHS ENDED ----------------------- MARCH 29, MARCH 30, 1997 1996 ---------- --------- FULLY DILUTED: Weighted-average shares of common stock outstanding during the period ... 4,509,925 4,287,436 Assumed exercise of options .............................................. 576,330 265,554 --------- --------- Weighted-average common and common equivalent shares outstanding ......... 5,086,255 4,552,990 ========= =========