<PAGE>   1
                              GARDEN BOTANIKA, INC.
                             CALCULATION OF EARNINGS
                     PER COMMON AND COMMON EQUIVALENT SHARE
                                  (EXHIBIT 11)


<TABLE>
<CAPTION>
                                                                                           (UNAUDITED)
                                                              ------------------------------------------------------------------
                                                                      QUARTER ENDED                     NINE MONTHS ENDED
                                                              ------------------------------------------------------------------
                                                                NOVEMBER 2,     OCTOBER 28,         NOVEMBER 2,       OCTOBER 28,
                                                                   1996            1995                 1996             1995
                                                              -------------    ------------        -------------     -----------
<S>                                                           <C>               <C>                <C>               <C>
PRIMARY:
  Earnings -
      Net earnings (loss) applicable to Common
        and Common equivalent shares                          $  (3,780,223)    $(1,986,269)       $  (8,451,765)    $(3,648,819)
                                                              =============     ===========        =============     ===========

  Shares -
      Weighted average Common shares outstanding                  7,067,310         264,303            5,838,964         263,825
      Weighted average Preferred shares outstanding (1)                  --       3,418,623                   --       3,418,623
      Net effect of stock options, based on treasury stock
        method using average market price                                --(2)       24,536(3)                --(2)       24,536(3)
                                                              -------------     -----------        -------------     -----------
 Weighted average Common and Common equivalent shares             7,067,310       3,707,462            5,838,964       3,706,984
                                                              =============     ===========        =============     ===========

Primary earnings (loss) per Common and
 Common equivalent share                                      $       (0.53)    $     (0.54)       $       (1.45)    $     (0.98)
                                                              =============     ===========        =============     ===========
</TABLE>


FULLY DILUTED:
   Fully diluted earnings (loss) per share is not presented, as there were no
potentially dilutive securities.


NOTES:
   (1) In connection with its initial public offering of Common Stock completed
       on May 22, 1996, all of the Company's outstanding Preferred Stock
       automatically converted to Common on a one-for-one basis. Therefore,
       losses per Common and Common equivalent share are based on the weighted
       average number of Common and Preferred shares outstanding.

   (2) In the calculation of weighted average Common and Common equivalent
       shares, nonqualified stock options and warrants to purchase Common Stock
       are considered Common Stock equivalents. Such options and warrants are
       converted using the treasury stock method, which assumes that the shares
       issuable upon exercise of the options or warrants were outstanding for
       the full period. In accordance with generally accepted accounting
       principles, no Common Stock equivalents are shown for either the third
       quarter or the first nine months of fiscal 1996, as their effect would
       have been anti-dilutive.

   (3) Pursuant to Securities and Exchange Commission Accounting Bulletins,
       24,536 Common and Common equivalent shares issued during the 12-month
       period prior to the Company's May 1996 initial public offering have been
       included in the calculation as if they were outstanding for all periods
       reported prior to the filing of the Registration Statement (using the
       treasury stock method at the assumed initial public offering price).



                                      15