Earnings Per Share
The table below reconciles basic weighted-average shares of common stock outstanding to diluted weighted-average shares of common stock outstanding for fiscal years 2025, 2024, and 2023 (in thousands):
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| Fiscal Year Ended |
| January 31, 2026 | | February 1, 2025 | | February 3, 2024 |
| Weighted-average shares of common stock outstanding, used for basic computation | 131,193 | | | 132,150 | | | 133,047 | |
| Plus: Incremental shares of potentially dilutive securities: | 873 | | | 1,455 | | | 2,071 | |
| Weighted-average shares of common stock and dilutive potential shares of common stock outstanding | 132,066 | | | 133,605 | | | 135,118 | |
The table below summarizes awards that were excluded from the computation of diluted earnings for fiscal years 2025, 2024, and 2023 as their inclusion would have been anti-dilutive (in thousands):
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| Fiscal Year Ended |
| January 31, 2026 | | February 1, 2025 | | February 3, 2024 |
| Stock-based awards | 147 | | | 84 | | | 228 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.