Exhibit 11
PAYLESS SHOESOURCE, INC.
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COMPUTATION OF NET EARNINGS PER SHARE
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13 Weeks Ended 39 Weeks Ended
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Oct. 31, Nov. 1, Oct. 31, Nov. 1,
(Thousands, except per share) 1998 1997 1998 1997
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Basic Computation:
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Net earnings $ 33,688 $ 33,493 $120,747 $111,508
Weighted average common
shares outstanding 34,377 37,473 36,060 38,816
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Basic earnings per share $ 0.98 $ 0.89 $ 3.35 $ 2.87
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Diluted Computation:
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Net earnings $ 33,688 $ 33,493 $120,747 $111,508
Weighted average common
shares outstanding 34,377 37,473 36,060 38,816
Net effect of dilutive stock
options based on the treasury
stock method 111 661 372 396
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Outstanding shares for diluted
earnings per share 34,488 38,134 36,432 39,212
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Diluted earnings per share $ 0.98 $ 0.88 $ 3.31 $ 2.84
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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.