Net (Loss)/Income Per Share

3 Months Ended

Apr. 04, 2023

10. Net Income Per Share

Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period, reduced by unvested restricted stock awards. As of April 4, 2023 and March 29, 2022, 2.8 million and 2.5 million shares, respectively, of restricted stock and restricted stock units issued were unvested and, therefore, excluded from the calculation of basic earnings per share for the fiscal periods ended on those dates.

Diluted net income per share is computed by dividing net income by the weighted-average number of common stock equivalents outstanding for the period. Common stock equivalents for the Notes are determined by application of the if-converted method, and common stock equivalents for outstanding stock options, restricted stock and restricted stock units are determined by the application of the treasury stock method.


	Thirteen		Thirteen
	Weeks Ended		Weeks Ended
	April 4, 2023		March 29, 2022

	(In thousands, except per share data)
Net income	$	28,050	$	23,163

Basic weighted-average shares outstanding		48,694		50,333
Dilutive effect of equity awards ⁽¹⁾		1,084		680
Diluted weighted-average shares outstanding		49,778		51,013

Basic net income per share	$	0.58	$	0.46

Diluted net income per share	$	0.56	$	0.45

(1)

Shares of common stock equivalents related to outstanding stock options, restricted stock and restricted stock units of 1.9 million and 2.9 million for April 4, 2023 and March 29, 2022, respectively, were excluded from the diluted calculation due to their anti-dilutive effect. No shares of common stock equivalents related to the Notes were included in the diluted calculation due to their anti-dilutive effect.