Net Income Per Common Share

6 Months Ended

Aug. 01, 2015

(5) Net Income Per Common Share

Basic net income per share is calculated by dividing net income by the weighted average number of shares outstanding during the period. Diluted net income per share is calculated by dividing net income by the weighted average number of shares and, if dilutive, common equivalent shares for stock options, unvested restricted stock awards and restricted stock units outstanding during the period. A reconciliation of the shares used in calculating basic and diluted net income per share is as follows:


	Three Months Ended				Six Months Ended
	August 1, 2015		August 2, 2014		August 1, 2015		August 2, 2014
Weighted Average Common Shares Outstanding—Basic		7,278,329		7,703,782		7,268,745		7,652,000
Effect of Dilutive Options, Restricted Stock Awards and Restricted Stock Units		190,934		212,176		190,676		230,706

Weighted Average Common Shares Outstanding—Diluted		7,469,263		7,915,958		7,459,421		7,882,706

For the three and six months ended August 1, 2015 the diluted per share amounts do not reflect common equivalent shares outstanding of 424,100. For the three and six months ended August 2, 2014 the diluted per share amounts do not reflect common equivalent shares outstanding of 150,000. These outstanding common equivalent shares were not included due to their anti-dilutive effect. Anti-dilutive shares consist of those common stock equivalents that have either an exercise price above the average stock price for the period, or the common stock equivalent’s related average unrecognized stock compensation expense is sufficient to “buy back” the entire amount of shares. Restricted stock units which vest based upon achievement of performance targets are excluded from the diluted shares outstanding unless the performance targets have been met as of the end of the reporting period regardless of whether such performance targets are probable of achievement as of the end of the measurement period.