Computation of Earnings Per Common Share (Tables)

3 Months Ended

May 01, 2021

Schedule of Earnings Per Share Reconciliation

The following table sets forth the computation of basic and diluted earnings per common share (dollars in thousands, except per share amounts):


	For the Three Months Ended
	May 1, 2021		April 25, 2020
Net income (loss) available to common stockholders (numerator)	$	898	$	(32,418)

Weighted-average number of common shares (denominator)	30,675,625		31,603,498

Basic earnings (loss) per common share	$	0.03	$	(1.03)

Weighted-average number of common shares	30,675,625		31,603,498
Potential shares of common stock arising from stock options, and unvested restricted share units	623,844		—

Total shares-diluted (denominator)	31,299,469		31,603,498

Diluted earnings (loss) per common share	$	0.03	$	(1.03)

Anti-dilutive weighted shares excluded from the calculation of earnings (loss) per common share:
Stock-based awards(1)	66,264		608,279
0.75% convertible senior notes due 2021(2) (3)	601,349		3,024,082
Warrants(1) (2)	601,349		3,024,082
Total	1,268,962		6,656,443

(1) For the three months ended April 25, 2020, all common stock equivalents related to stock options and unvested restricted share units were excluded from the diluted loss per share calculation as their effect would be anti-dilutive due to our net less for the period.

(2) Under the treasury stock method, the convertible senior notes will have a dilutive impact on earnings per common share if our average stock price for the period exceeds the $96.89 per share conversion price. Our average stock price did not exceed the per share conversion price during the three months ended May 1, 2021 and April 25, 2020; therefore, there was no dilutive impact on earnings per common share for these periods. The warrants associated with our 2021 convertible senior notes will have a dilutive impact on earnings per common share if our average stock price for the period exceeds the $130.43 per share warrant strike price. As our average stock price did not exceed the strike price for the warrants for any of the periods presented, the underlying common shares were anti-dilutive as reflected in the table above.

(3) In connection with the purchase of $401.7 million of the 2021 Convertible Notes in fiscal 2021 and $25.0 million in fiscal 2020, we unwound convertible note hedge transactions and warrants proportionately to the number of 2021 Convertible Notes, resulting in a decrease in the number of excluded weighted shares.