Income Per Common ShareBasic income per common share amounts are calculated using the weighted-average number of common shares outstanding for the period. Diluted income per common share amounts are calculated using the weighted-average number of common shares outstanding for the period and include the dilutive impact of exercised stock options as well as assumed vesting of restricted stock awards and shares currently available for purchase under the Company's Employee Stock Purchase Plan, using the treasury stock method. Performance-based restricted stock units are considered contingently issuable shares for diluted income per common share purposes and the dilutive impact, if any, is not included in the weighted-average shares until the performance conditions are met. The dilutive impact, if any, for performance-based restricted stock units, which are subject to market conditions based on the Company's total shareholder return relative to a pre-defined peer group, are included in the weighted average shares.
The following table reconciles net income and the weighted average common shares outstanding used in the computations of basic and diluted income per common share (in thousands, except for share and per share data):
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| Fiscal Year | | |
| | 2024 | | 2023 | | 2022 | | |
| Numerator: | | | | | | | |
| Net income | $ | 253,611 | | | $ | 301,106 | | | $ | 261,528 | | | |
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| Denominator: | | | | | | | |
| Weighted average common shares outstanding - basic | 55,055,064 | | | 55,487,252 | | | 55,547,267 | | | |
| Dilutive impact of options, restricted stock units, and employee stock purchase plan | 101,278 | | | 134,367 | | | 198,012 | | | |
| Weighted average common shares outstanding - diluted | 55,156,342 | | | 55,621,619 | | | 55,745,279 | | | |
| Per common share: | | | | | | | |
| Basic income per common share | $ | 4.61 | | | $ | 5.43 | | | $ | 4.71 | | | |
| Diluted income per common share | $ | 4.60 | | | $ | 5.41 | | | $ | 4.69 | | | |
The effects of the assumed vesting of restricted stock units outstanding as of February 1, 2025, February 3, 2024 and January 28, 2023 for 99,741, 19,152 and 72,043 shares of common stock, respectively, were excluded from the fiscal 2024, fiscal 2023 and fiscal 2022 calculation of diluted income per common share as their impact would have been anti-dilutive.
The aforementioned excluded shares do not reflect the impact of any incremental repurchases under the treasury stock method.
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.