Note 18. (Loss) Earnings Per Share
The following table provides the computation of basic and diluted net (loss) earnings per share (in thousands, except per share amounts):
| | | | | | | | | | | | | | | | | | | | | |
| | | Fiscal Year Ended |
| | | | | January 31, 2026 | | February 1, 2025 | | February 3, 2024 |
| Net (loss) income—basic and diluted | | | | | $ | (7,034) | | | $ | 16,318 | | | $ | 11,619 | |
| | | | | | | | | |
| Weighted-average number of shares—basic | | | | | 101,442 | | | 104,564 | | | 103,990 | |
| | | | | | | | | |
| Weighted-average number of shares—basic | | | | | 101,442 | | | 104,564 | | | 103,990 | |
| Effect of dilutive performance stock units and restricted stock units | | | | | — | | | 888 | | | 410 | |
| Effect of dilutive options | | | | | — | | | 232 | | | — | |
| Weighted-average number of shares—diluted | | | | | 101,442 | | | 105,684 | | | 104,400 | |
| | | | | | | | | |
| Net (loss) earnings per share: | | | | | | | | | |
| Basic | | | | | $ | (0.07) | | | $ | 0.16 | | | $ | 0.11 | |
| Diluted | | | | | $ | (0.07) | | | $ | 0.15 | | | $ | 0.11 | |
| | | | | | | | | |
The following table presents potentially dilutive securities excluded from the computation of diluted (loss) earnings per share for the periods presented because their effect would have been anti-dilutive (in thousands):
| | | | | | | | | | | | | | | | | | | | | |
| | | Fiscal Year Ended |
| | | | | January 31, 2026 | | February 1, 2025 | | February 3, 2024 |
| Restricted stock awards, restricted stock units and performance stock units | | | | | 510 | | | 99 | | | 614 | |
| Stock options | | | | | 3,228 | | | 1,551 | | | 2,310 | |
| Total | | | | | 3,738 | | | 1,650 | | | 2,924 | |
| | | | | | | | | |
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.