<PAGE> 1
Exhibit 11
PAYLESS SHOESOURCE, INC.
COMPUTATION OF NET EARNINGS PER SHARE
<TABLE>
<CAPTION>
13 Weeks Ended 26 Weeks Ended
-------------------- --------------------
July 29, July 31, July 29, July 31,
(Thousands, except per share) 2000 1999 2000 1999
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Basic Computation:
-----------------
Net earnings $ 48,799 $ 51,331 $ 74,266 $ 86,614
Weighted average common
shares outstanding 22,306 31,605 25,377 31,923
-------- -------- -------- --------
Basic earnings per share $ 2.19 $ 1.62 $ 2.93 $ 2.71
======== ======== ======== ========
Diluted Computation:
-------------------
Net earnings $ 48,799 $ 51,331 $ 74,266 $ 86,614
Weighted average common
shares outstanding 22,306 31,605 25,377 31,923
Net effect of dilutive stock
options based on the treasury
stock method 302 241 205 201
-------- -------- -------- --------
Outstanding shares for diluted
earnings per share 22,608 31,846 25,582 32,124
======== ======== ======== ========
Diluted earnings per share $ 2.16 $ 1.61 $ 2.90 $ 2.70
======== ======== ======== ========
</TABLE>
Note: Basic earnings per share is computed by dividing net earnings by the
weighted average number of shares of common stock outstanding during the period.
Diluted earnings per share includes the effect of conversions of options.
