Home Improvement Store Revels in Surging Revenues

by Kirk Bangstad
Face Your Kitchen Columnist

Apparently, the cabinet refacing Market is growing. U.S. Home Systems, a seller of kitchen cabinet refacing supplies and other home improvement items, reported a large increase in sales in the last quarter ending Sept. 30th, 2005.

Cabinet Refacing, a Subset of USHS' Interior Products Segment

U.S. Home Systems is a company divided into two separate lines of business--home improvement and consumer finance. Its home improvement business has two separate product lines divided by exterior and interior home needs. Its interior home improvement business mainly sells kitchen and bathroom cabinetry and cabinet refacing supplies.

Home Improvement Chain Linked to Growth

Among these three separate revenue categories, the interior products segment outshined the other segments by a two to one margin. In the last quarter, its revenues grew by over 38%, while the exterior products segment only grew by 17%. Its consumer finance division's revenues barely grew at all. USHS attributed much of this revenue growth to a strategic alliance with Home Depot, a chain of home improvement stores serving do-it-yourself types.

DIY Cabinet Refacing Contributes to Revenue Growth

The growing popularity of do it yourself projects is a main reason why USHS is seeing high revenue growth. DIY popularity is probably linked to the growth of Home Depot outlets which has allowed more and more people to discover the economic benefits of do it yourself home improvement. For example, people are discovering that do it yourself kitchen cabinet refacing can completely renew the look of a kitchen for a fraction of the cost of replacing worn out kitchen cabinets. Because the cost of cabinet refacing is so low, it makes sense that more and more people are buying kitchen cabinet refacing supplies at do it yourself stores, thus partially explaining USHS' high quarterly revenue growth.

About the Author
Kirk Bangstad is an artist manager and singer working in Chicago, IL. His previous experience includes consulting for technology companies in the Silicon Valley and serving as a field director and publicist for a statewide political campaign. Kirk holds a B.A. in government from Harvard University.