# EXHIBIT 11.1

# DEPARTMENT 56, INC.
COMPUTATION OF NET INCOME PER SHARE
(In thousands, except per share amounts)

|                                                         | 13 WeeksEndedJuly 2,2005 |  | 13 WeeksEndedJuly 3,2004
|-------------------------------------------------------- | ------------------------ |  | ------------------------
|Basic:                                                   |                          |  |                         
|Net income                                               |                          |  | $                       
|                                                         |                          |  |                         
|                                                        
|Weighted average number of common shares outstanding     |                          |  |                         
|                                                        
|Net income per common share  basic                      |                          |  | $                       
|                                                         |                          |  |                         
|                                                        
|Assuming Dilution:                                      
|Net income                                               |                          |  | $                       
|                                                         |                          |  |                         
|                                                        
|Weighted average number of common shares outstanding     |                          |  |                         
|                                                        
|Dilutive impact of the assumed exercise of stock options |                          | 
|and unvested restricted stock                            |                          |  |                         
|                                                         |                          |  |                         
|                                                        
|Weighted average number of common and                   
|common equivalent shares                                 |                          |  |                         
|                                                         |                          |  |                         
|                                                        
|Net income per common share  assuming dilution          |                          |  | $                       
|                                                         |                          |  |                         

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|                                                         | 26 WeeksEndedJuly 2,2005 |  | 26 WeeksEndedJuly 3,2004
|-------------------------------------------------------- | ------------------------ |  | ------------------------
|Basic:                                                   |                          |  |                         
|Net income                                               |                          |  | $                       
|                                                         |                          |  |                         
|                                                        
|Weighted average number of common shares outstanding     |                          |  |                         
|                                                        
|Net income per common share  basic                      |                          |  | $                       
|                                                         |                          |  |                         
|                                                        
|Assuming Dilution:                                      
|Net income                                               |                          |  | $                       
|                                                         |                          |  |                         
|                                                        
|Weighted average number of common shares outstanding     |                          |  |                         
|                                                        
|Dilutive impact of the assumed exercise of stock options |                          | 
|and unvested restricted stock                            |                          |  |                         
|                                                         |                          |  |                         
|                                                        
|Weighted average number of common and                   
|common equivalent shares                                 |                          |  |                         
|                                                         |                          |  |                         
|                                                        
|Net income per common share  assuming dilution          |                          |  | $                       
|                                                         |                          |  |                         

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