1 EXHIBIT 11.1 DM MANAGEMENT COMPANY AND SUBSIDIARY QUARTERLY REPORT ON FORM 10-Q COMPUTATION OF PER SHARE EARNINGS THREE MONTHS ENDED SIX MONTHS ENDED ---------------------- ---------------------- JUNE 28, JUNE 29, JUNE 28, JUNE 29, 1997 1996 1997 1996 --------- --------- --------- --------- PRIMARY: Weighted-average shares of common stock outstanding during the period ................................. 4,548,453 4,296,652 4,529,189 4,291,962 Assumed exercise of options ......................... 602,559 439,902 527,347 327,850 --------- --------- --------- --------- Weighted-average common and common equivalent shares outstanding ....................................... 5,151,012 4,736,554 5,056,536 4,619,812 ========= ========= ========= ========= THREE MONTHS ENDED SIX MONTHS ENDED ---------------------- ---------------------- JUNE 28, JUNE 29, JUNE 28, JUNE 29, 1997 1996 1997 1996 --------- --------- --------- --------- FULLY DILUTED: Weighted-average shares of common stock outstanding during the period ................................. 4,548,453 4,296,652 4,529,189 4,291,962 Assumed exercise of options ......................... 689,528 498,607 680,337 382,080 --------- --------- --------- --------- Weighted-average common and common equivalent shares outstanding ....................................... 5,237,981 4,795,259 5,209,526 4,674,042 ========= ========= ========= ========= 17