Exhibit 11.1 PAYLESS SHOESOURCE, INC. ------------------------ COMPUTATION OF NET EARNINGS PER SHARE ------------------------------------- 13 Weeks Ended ------------------ May 2, May 3, (Thousands, except per share) 1998 1997 -------- -------- Basic Computation: - - - ------------------ Net earnings $ 37,758 $ 32,427 Common shares outstanding 37,308 39,897 -------- -------- Net earnings per share $ 1.01 $ 0.81 ======== ======== Diluted Computation: - - - -------------------- Net earnings $ 37,758 $ 32,427 Common shares outstanding 37,308 39,897 Net effect of dilutive stock options based on the treasury stock method 493 161 -------- -------- Outstanding shares for diluted earnings per share 37,801 40,058 ======== ======== Diluted earnings per share $ 1.00 $ 0.81 ======== ======== 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.