Exhibit 11
PAYLESS SHOESOURCE, INC.
------------------------
COMPUTATION OF NET EARNINGS PER SHARE
-------------------------------------
13 Weeks Ended 26 Weeks Ended
-------------------- --------------------
August 1, August 2, August 1, August 2,
(Thousands, except per share) 1998 1997 1998 1997
--------- --------- --------- ---------
Basic Computation:
- ------------------
Net earnings $ 49,301 $ 45,588 $ 87,059 $ 78,015
Weighted average common
shares outstanding 36,495 39,077 36,901 39,487
-------- -------- -------- --------
Basic earnings per share $ 1.35 $ 1.17 $ 2.36 $ 1.98
======== ======== ======== ========
Diluted Computation:
- --------------------
Net earnings $ 49,301 $ 45,588 $ 87,059 $ 78,015
Weighted average common
shares outstanding 36,495 39,077 36,901 39,487
Net effect of dilutive stock
options based on the treasury
stock method 460 446 462 240
-------- -------- -------- --------
Outstanding shares for diluted
earnings per share 36,955 39,523 37,363 39,727
======== ======== ======== ========
Diluted earnings per share $ 1.33 $ 1.15 $ 2.33 $ 1.96
======== ======== ======== ========
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.