Ultimate Electronics is making hay with high-definition and flat-panel TVs. Sales of digital television, more than 80 percent of UE's overall TV business, increased by 105 percent this last quarter, and the company contends its average selling price was 21 percent higher than the industry.
For its quarter ending January 31, television/DBS comprised 38 percent of Ultimate Electronics' merchandise sales, up from 33 percent a year prior. The merchandise volume was distributed among audio (20 percent), Video/DVD (17 percent), mobile (9 percent), home office (4 percent) and other (12 percent).
Mobile electronics is another Ultimate Electronics strong point and another area of flux. "Today the position of our mobile business is to appeal to younger consumers—big bass, big thump," Workman said. "However, the energy that's going on in that category of product today is lending itself more to an older demographic. It is a question: who we should be for the future? Maybe it's both, and we just have to figure out a way to grow the business."