Home Decor Co.

Case Prompt

Home Decor Co. (HDC) is a small home decor distributor in the U.S. As home decoration items like wall arts and functional mirrors have made a resurgence in the market place, so has HDC. However, recent financial reports show that HDC’s profit have declined over the last three years, and they’ve hired us to diagnose the issue.

Additional info:

• Customers - HDC sells to boutique home decor retailers
• Products - HDC sells 5 products (Wall Art, Mirror, Cozy Textile, Botanicals and Lightings)
• HDC has 3 distribution centers in San Diego, Denver, and Chicago)

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General response summary

• Interviewee should recognize this as a profitability case. Their framework will most likely have three columns (revenue, costs, market/other)
• Financials (Interviewer should wait to provide to interviewee until after framework)
  • HDC’s sales were $20M in 2023, $22M in 2024, and $25M in 2025
  • HDC’s profits were $2.0M in 2023, $1.8M in 2024, and $1.4M in 2025