Earnings Per Share

6 Months Ended

Jul. 28, 2012

Earnings Per Share

Earnings Per Share

(2)           Earnings Per Share

Basic earnings per share represents net earnings attributable to common stockholders divided by the weighted-average number of common shares outstanding for the period. Diluted earnings per share represents net earnings attributable to common stockholders divided by the weighted-average number of common shares outstanding, inclusive of the dilutive impact of common equivalent shares outstanding during the period. However, nonvested restricted stock awards (referred to as participating securities) are excluded from the dilutive impact of common equivalent shares outstanding in accordance with authoritative guidance under the two-class method since the nonvested restricted stockholders are entitled to participate in dividends declared on common stock as if the shares were fully vested and hence are deemed to be participating securities. Under the two-class method, earnings attributable to nonvested restricted stockholders are excluded from net earnings attributable to common stockholders for purposes of calculating basic and diluted earnings per common share.

The computation of basic and diluted net earnings per common share attributable to common stockholders is as follows (in thousands, except per share data):

	Three Months Ended				Six Months Ended
	July 28, 2012		July 30, 2011		July 28, 2012		July 30, 2011
Net earnings attributable to Guess?, Inc.	$	42,899	$	60,657	$	69,545	$	103,339
Less net earnings attributable to nonvested restricted stockholders	298		512		460		811
Net earnings attributable to common stockholders	$	42,601	$	60,145	$	69,085	$	102,528
Weighted average common shares used in basic computations	86,972		91,864		88,081		91,746
Effect of dilutive securities:
Stock options and restricted stock units	265		504		303		535
Weighted average common shares used in diluted computations	87,237		92,368		88,384		92,281
Net earnings per common share attributable to common stockholders:
Basic	$	0.49	$	0.65	$	0.78	$	1.12
Diluted	$	0.49	$	0.65	$	0.78	$	1.11

For the three months ended July 28, 2012 and July 30, 2011, equity awards granted for 1,541,867 and 821,104, respectively, of the Company’s common shares and for the six months ended July 28, 2012 and July 30, 2011, equity awards granted for 1,328,398 and 536,291, respectively, of the Company’s common shares were outstanding but were excluded from the computation of diluted weighted average common shares and common share equivalents outstanding because their effect would have been anti-dilutive.

On March 14, 2011, the Company’s Board of Directors terminated the previously authorized 2008 share repurchase program (which had $84.9 million capacity remaining) and authorized a new program to repurchase, from time-to-time and as market and business conditions warrant, up to $250 million of the Company’s common stock (the “2011 Share Repurchase Program”). On June 26, 2012, the Company’s Board of Directors authorized a new program to repurchase, from time-to-time and as market and business conditions warrant, up to $500 million of the Company’s common stock (the “2012 Share Repurchase Program”). The 2012 Share Repurchase Program is in addition to the existing 2011 Share Repurchase Program. Repurchases under either program may be made on the open market or in privately negotiated transactions, pursuant to Rule 10b5-1 trading plans or other available means. There is no minimum or maximum number of shares to be repurchased under either program and both programs may be discontinued at any time, without prior notice. During the six months ended July 28, 2012, the Company repurchased 5,036,418 shares under the 2011 Share Repurchase Program at an aggregate cost of $140.1 million. All such share repurchases were made during the three months ended July 28, 2012.

There were no share repurchases under the 2012 Share Repurchase Program during the six months ended July 28, 2012. There were no share repurchases under the 2011 or 2008 Share Repurchase Programs during the six months ended July 30, 2011. At July 28, 2012, the Company had remaining authority under the 2012 and 2011 Share Repurchase Programs to purchase $517.9 million of its common stock.