Income Per Share

3 Months Ended

Apr. 29, 2023

INCOME PER SHARE

In accordance with relevant accounting guidance, unvested share-based payment awards that include non-forfeitable rights to dividends, whether paid or unpaid, are considered participating securities. As a result, such awards are required to be included in the calculation of income per common share pursuant to the "two-class" method. For the Company, participating securities are comprised entirely of unvested restricted stock awards granted prior to fiscal 2020.

Net income per share is determined using the two-class method when it is more dilutive than the treasury stock method. Basic net income per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period, including participating securities. Diluted net income per share reflects the dilutive effect of potential common shares from non-participating securities such as restricted stock awards granted after fiscal 2019, stock options, PSUs and restricted stock units.

The following table sets forth the computation of net income per basic and diluted share shown on the face of the accompanying condensed consolidated statements of income:


	Thirteen Weeks Ended
	April 29, 2023		April 30, 2022

Numerator:
Net income	$	39,906	$	34,932
Net income allocated to participating securities	(58)		(178)
Net income available to common shareholders	$	39,848	$	34,754
Denominator:
Weighted average common shares outstanding – basic	119,702		118,993
Dilutive effect of non-participating securities	3,673		4,318
Weighted average common and common equivalent shares outstanding – diluted	123,375		123,311
Net income per common share:
Basic	$	0.33	$	0.29
Diluted	$	0.32	$	0.28

For the thirteen weeks ended April 29, 2023 and April 30, 2022, 1.6 million and 0.1 million potential shares of common stock, respectively, were excluded from the diluted income per common share calculation relating to non-participating securities, due to the antidilutive effect of including these shares.