EARNINGS (LOSS) PER SHARE
|6 Months Ended|
Aug. 01, 2020
|EARNINGS (LOSS) PER SHARE|
|EARNINGS PER SHARE||
8. EARNINGS (LOSS) PER SHARE
The Company’s unvested restricted stock awards contain non-forfeitable rights to dividends and meet the criteria of a participating security as defined by ASC 260, “Earnings Per Share”. In applying the two-class method, net income is allocated to both common and participating securities based on their respective weighted-average shares outstanding for the period. Basic earnings (loss) per share is computed by dividing net income (loss) allocated to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing income available to common shareholders by the weighted-average common shares outstanding plus the potential dilutive impact from stock options and restricted stock units. Common equivalent shares are excluded from the computation if their effect is anti-dilutive. During the second quarter of fiscal 2020 and the first six months of fiscal 2020, we incurred a net loss and therefore all common stock equivalents were anti-dilutive and excluded from the diluted net loss per share calculation. As a result, the basic and dilutive losses per common share are the same for the second quarter of fiscal 2020 and first six months of fiscal 2020. There were 13.1 million and 11.3 million anti-dilutive shares during the second quarters of fiscal 2020 and fiscal 2019, respectively. There were 12.9 million and 11.6 million anti-dilutive shares during the six months ended August 1, 2020 and August 3, 2019, respectively.
The following table sets forth the computation of basic and diluted (loss) earnings per common share (in thousands, except per share data):
The entire disclosure for earnings per share.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef