Revenue flow

Margins

Stage	CATO	% of rev	VRA	% of rev	Gap · A − B
Revenue	$166M	100.00%	$72M	100.00%	CATO ×2.31
Gross profit	$55M	33.43%	$43M	59.76%	VRA +26.3pp
Operating income	$1M	0.78%	$4M	5.83%	VRA +5.1pp
Pre-tax income	$1M	0.78%	$4M	6.15%	VRA +5.4pp
Net income	$1M	0.69%	$5M	6.28%	VRA +5.6pp

Stage	CATO	VRA	Gap · A − B
Revenue	$166M100.00%	$72M100.00%	CATO ×2.31
Gross profit	33.43%$55M	59.76%$43M	VRA +26.3pp
Operating income	0.78%$1M	5.83%$4M	VRA +5.1pp
Pre-tax income	0.78%$1M	6.15%$4M	VRA +5.4pp
Net income