(Loss) Earnings Per Share
Our common stock consists of two classes: Class A and Class B. The Class A and Class B common stock have identical rights, except with respect to voting and conversion.
Basic net (loss) income per share is computed based on the weighted average number of common shares outstanding during the period. Diluted net (loss) income per share is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method, whereby proceeds from such exercise, and unamortized compensation expense, on share-based awards are assumed to be used by us to purchase the common shares at the average market price during the period. Potentially dilutive shares of common stock represent outstanding stock options and restricted stock awards.
The components of basic and diluted (loss) earnings per share of Class A and Class B common stock, in aggregate, for fiscal years 2024, 2023 and 2022 are as follows (in thousands, except per share amounts):
| | | | | | | | | | | | | | | | | |
| | Fiscal Year Ended |
| | February 1,
2025 | | February 3,
2024 | | January 28,
2023 |
| Net (loss) income | $ | (46,229) | | | $ | (34,492) | | | $ | 9,677 | |
| Weighted average basic shares outstanding | 30,028 | | | 29,848 | | | 30,115 | |
| Dilutive effect of stock options and restricted stock | — | | | — | | | 208 | |
| Weighted average shares for diluted (loss) earnings per share | 30,028 | | | 29,848 | | | 30,323 | |
| Basic (loss) earnings per share of Class A and Class B common stock | $ | (1.54) | | | $ | (1.16) | | | $ | 0.32 | |
| Diluted (loss) earnings per share of Class A and Class B common stock | $ | (1.54) | | | $ | (1.16) | | | $ | 0.32 | |
The (loss) earnings per share amounts are the same for Class A and Class B common stock, in aggregate, and individually for Class A and Class B common stock because the holders of each class are legally entitled to equal per share distributions whether through dividends or in liquidation. Shares of Class A and Class B common stock vote together as a single class on all matters submitted to a vote of stockholders. Holders of Class A common stock are entitled to one vote per share and holders of Class B common stock are entitled to 10 votes per share.
The following stock options and restricted stock have been excluded from the calculation of diluted (loss) earnings per share as the effect of including these stock options and restricted stock would have been anti-dilutive (in thousands): | | | | | | | | | | | | | | | | | |
| Fiscal Year Ended |
| February 1,
2025 | | February 3,
2024 | | January 28,
2023 |
| Stock options | 1,848 | | | 2,110 | | | 1,317 | |
| Restricted stock | — | | | — | | | 10 | |
| Total | 1,848 | | | 2,110 | | | 1,327 | |
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.