EARNINGS PER SHARE

12 Months Ended

Jan. 28, 2017

NOTE 4. EARNINGS PER SHARE

The computation of basic earnings per share (EPS) is based on the number of weighted average common shares outstanding during the period. The computation of diluted EPS is based on the weighted average number of shares outstanding plus the incremental shares that would be outstanding assuming exercise of dilutive stock options and issuance of restricted stock. The number of incremental shares is calculated by applying the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share in thousands:

	Fiscal Year Ended
	January 28, 2017		January 30, 2016		January 31, 2015
Net income	$	$61,075	$	$70,528	$	$73,584

Weighted average number of common shares outstanding		22,240		23,947		25,369
Dilutive stock options		40		35		66
Dilutive restricted stock units		147		147		185
Weighted average number of common shares outstanding and dilutive shares		22,427		24,129		25,620

Basic earnings per share	$	2.75	$	2.95	$	2.90
Diluted earnings per share	$	2.72	$	2.92	$	2.87

In calculating diluted earnings per share for Fiscal 2017, 104,091 options to purchase shares of common stock outstanding as of the end of the period were excluded in the computations of diluted earnings per share due to their anti-dilutive effect. In calculating diluted earnings per share for Fiscal 2016, 120,206 options to purchase shares of common stock outstanding as of the end of the period were excluded in the computations of diluted earnings per share due to their anti-dilutive effect. In calculating diluted earnings per share for Fiscal 2015, 677 options to purchase shares of common stock outstanding as of the end of the period were excluded in the computations of diluted earnings per share due to their anti-dilutive effect.

We excluded 37,300 nonvested stock awards granted to certain employees from the computation of diluted weighted average common shares and common share equivalents outstanding, because they are subject to performance-based annual vesting conditions which had not been achieved by the end of Fiscal 2017. Assuming the performance criteria had been achieved at target as of January 28, 2017, the incremental dilutive impact would have been 24,503 shares.