Net (Loss) Income Per Share

3 Months Ended

May 04, 2024

7. Net (Loss) Income Per Share

Basic net (loss) income per share is net (loss) income divided by the average number of common shares outstanding during the period. Diluted net (loss) income per share includes incremental shares assumed for share-based awards and stock warrants. The potentially dilutive shares outstanding during the period include unvested restricted stock units, unvested restricted stock awards, and warrants, which utilize the treasury stock method, as well as unvested performance share units that utilize the contingently issuable share method. Potentially dilutive shares are excluded from the computations of diluted (loss) earnings per share ("EPS") if their effect would be anti-dilutive.

The information required to compute basic and diluted net (loss) income per share is as follows:


	Quarter Ended
(Dollars and Shares in Millions, Except per Share Data)	May 4, 2024	April 29, 2023
Numerator—Net (loss) income	$(27)	$14
Denominator—Weighted-average shares:
Basic	111	110
Dilutive impact	—	1
Diluted	111	111
Net (loss) income per share:
Basic	$(0.24)	$0.13
Diluted	$(0.24)	$0.13

The following potential shares of common stock were excluded from the diluted net (loss) income per share calculation because their effect would have been anti-dilutive:


	Quarter Ended
(Shares in Millions)	May 4, 2024	April 29, 2023
Anti-dilutive shares	7	3