Earnings Per Share

6 Months Ended

Jul. 31, 2021

Note 7. Earnings Per Share

Basic earnings (loss) per share is calculated by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Except when the effect would be anti-dilutive, diluted earnings (loss) per share is calculated based on the weighted average number of shares of common stock outstanding plus the dilutive effect of share-based awards calculated under the treasury stock method. In periods when we have a net loss, share-based awards are excluded from our calculation of earnings per share as their inclusion would have an anti-dilutive effect.

The following is a reconciliation of weighted average basic shares to weighted average diluted shares outstanding:

	Three Months Ended				Six Months Ended
	July 31,		August 1,		July 31,		August 1,
	2021		2020		2021		2020
Weighted-average shares—basic		11,898,360		11,784,007		11,855,535		11,739,061
Effect of dilutive equity securities		—		—		—		—
Weighted-average shares—diluted		11,898,360		11,784,007		11,855,535		11,739,061

Because the Company incurred a net loss for the three and six months ended July 31, 2021 and August 1, 2020, weighted-average basic shares and weighted-average diluted shares outstanding are equal for the periods.