Equity and Earnings Per Share (Notes)

9 Months Ended

Jan. 30, 2021

Note 7. Equity and Earnings Per Share

Equity

Share Repurchases

On December 14, 2015, our Board of Directors authorized a stock repurchase program of up to $50,000, in the aggregate, of our outstanding Common Stock. The stock repurchase program is carried out at the direction of management (which may include a plan under Rule 10b5-1 of the Securities Exchange Act of 1934). The stock repurchase program may be suspended, terminated, or modified at any time. Any repurchased shares will be held as treasury stock and will be available for general corporate purposes. During the 39 weeks ended January 30, 2021, we did not repurchase shares of our Common Stock under the program and as of January 30, 2021, approximately $26,669 remains available under the stock repurchase program.

During the 39 weeks ended January 30, 2021, we repurchased 414,174 shares of our Common Stock outside of the stock repurchase program in connection with employee tax withholding obligations for vested stock awards.

Sale of Treasury Shares

In December 2020, we entered into a new merchandising partnership with Fanatics and FLC which included a strategic equity investment in the Company. Fanatics, Inc. and Lids Holdings, Inc. jointly purchased an aggregate 2,307,692 of our common shares (issued from treasury shares) for $15,000, representing a share price of $6.50 per share. The premium price paid above the fair market value of our common stock at closing was approximately $4,131 and was recorded as a contract liability ($175 in accrued liabilities and $3,956 in other long-term liabilities our condensed consolidated balance sheet) which is expected to be recognized over the term of the merchandising contracts for Fanatics and FLC, as discussed in Note 1. Organization - Partnership with Fanatics and FLC. We expect to use these proceeds for general corporate purposes.

Earnings Per Share

Basic EPS is computed based upon the weighted average number of common shares outstanding for the year. Diluted EPS is computed based upon the weighted average number of common shares outstanding for the year plus the dilutive effect of common stock equivalents using the treasury stock method and the average market price of our common stock for the year. We include participating securities (unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents) in the computation of EPS pursuant to the two-class method. Our participating securities consist solely of unvested restricted stock awards, which have contractual participation rights equivalent to those of stockholders of unrestricted common stock. The two-class method of computing earnings per share is an allocation method that calculates earnings per share for common stock and participating securities. During periods of net loss, no effect is given to the participating securities because they do not share in the losses of the Company. During the 13 weeks ended January 30, 2021 and January 25, 2020, average shares of 4,005,236 and 3,682,169 were excluded from the diluted earnings per share calculation as their inclusion would have been antidilutive, respectively. During the 39 weeks ended January 30, 2021 and January 25, 2020, average shares of 3,234,606 and 1,348,949 were excluded from the diluted earnings per share calculation as their inclusion would have been antidilutive, respectively.

The following is a reconciliation of the basic and diluted earnings per share calculation:


	13 weeks ended				39 weeks ended
(shares in thousands)	January 30, 2021		January 25, 2020		January 30, 2021		January 25, 2020
Numerator for basic earnings per share:
Net (loss) income available to common shareholders	$	(48,289)	$	(1,693)	$	(87,426)	$	2,083
Less allocation of earnings to participating securities	—		—		—		(1)
Net (loss) income available to common shareholders	$	(48,289)	$	(1,693)	$	(87,426)	$	2,082

Numerator for diluted earnings per share:
Net (loss) income available to common shareholders	$	(48,289)	$	(1,693)	$	(87,426)	$	2,082
Allocation of earnings to participating securities	—		—		—		1
Less diluted allocation of earnings to participating securities	—		—		—		(1)
Net (loss) income available to common shareholders	$	(48,289)	$	(1,693)	$	(87,426)	$	2,082

Denominator for basic earnings per share:
Basic weighted average shares of Common Stock	50,082		48,298		49,099		47,911

Denominator for diluted earnings per share:
Basic weighted average shares of Common Stock	50,082		48,298		49,099		47,911
Average dilutive restricted stock units	—		—		—		403
Average dilutive performance shares	—		—		—		9
Average dilutive restricted shares	—		—		—		12
Average dilutive performance share units	—		—		—		432
Average dilutive stock options	—		—		—		—
Diluted weighted average shares of Common Stock	50,082		48,298		49,099		48,767

(Loss) Earnings per share of Common Stock:
Basic	$	(0.96)	$	(0.04)	$	(1.78)	$	0.04
Diluted	$	(0.96)	$	(0.04)	$	(1.78)	$	0.04