8. Net Income Per Share

Basic net income per share is calculated by dividing net income by the weighted-average number of common shares outstanding. Dilutive net income per share is calculated by dividing net income by the weighted-average number of common shares and potentially dilutive securities outstanding during the period using the treasury stock method for the Company’s stock option, restricted stock and restricted stock unit awards, and the if-converted method for the 2025 Convertible Notes and 2027 Convertible Notes, as applicable.

 

 

(in thousands, except per share data)

 

 

 

Fiscal Year Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

January 31,

 

 

February 1,

 

 

February 3,

 

 

 

2026

 

 

2025

 

 

2024

 

Basic net income per share

 

 

 

 

 

 

 

 

 

Net income

 

$

610,153

 

 

$

503,639

 

 

$

339,649

 

Weighted average number of common shares – basic

 

 

62,984

 

 

 

63,634

 

 

 

64,672

 

Net income per common share – basic

 

$

9.69

 

 

$

7.91

 

 

$

5.25

 

Diluted net income per share

 

 

 

 

 

 

 

 

 

Net income

 

$

610,153

 

 

$

503,639

 

 

$

339,649

 

Shares for basic and diluted net income per share:

 

 

 

 

 

 

 

 

 

Weighted average number of common shares – basic

 

 

62,984

 

 

 

63,634

 

 

 

64,672

 

Assumed exercise of stock options and vesting of restricted stock

 

 

795

 

 

 

673

 

 

 

245

 

Assumed conversion of convertible debt

 

 

347

 

 

 

288

 

 

 

 

Weighted average number of common shares – diluted

 

 

64,126

 

 

 

64,595

 

 

 

64,917

 

Net income per common share – diluted

 

$

9.51

 

 

$

7.80

 

 

$

5.23

 

 

Approximately 173,000 shares, 405,000 shares and 1,524,000 shares were excluded from diluted net income per share for Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively, since their effect was anti-dilutive.

Historical Timeline

Fiscal YearFiled
2026Mar 19, 2026Showing above
2025Mar 17, 2025
2024Mar 15, 2024
2023Mar 13, 2023
2022Mar 16, 2022
2021Mar 15, 2021
2020Mar 13, 2020

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.