Things are not looking very good for Evine, which Wednesday announced it was formally reviewing alternatives such as a sale of the network or entering a strategic partnership.
The Minnesota-based channel put out that sad news as it reported its dismal fiscal fourth-quarter earnings, with net sales of $157.6 million, down 12 percent versus the prior year-period.
The company also saw a net loss of $10 million, compared to net income of $6.4 million in the prior year.
The network did list some 2018 successes, such as: the launch of Jennifer Flavin-Stallone’s Serious Skincare; adding new brands and product lines such as Nutritionary, Ron White, Karl Lagerfeld, Nygard, Ready to Wear Beauty, among others; announcing a collaboration with the Jane Fonda; and attracting new brands with the launch of its new Los Angeles office and studio.
Then came the real lede.
“The company today announced that its board of directors initiated a process to review strategic alternatives to enhance shareholder value which could include a potential sale or strategic partnership,” Evine said in its press release.
It has retained Guggenheim Securities as its financial advisor.
Here’s what CEO Bob Rosenblatt had to say:
We had a strong first half of 2018 that saw both top-line and bottom-line growth. This followed two years of substantial progress, including stabilizing the business, improving the balance sheet and building a strong team and culture. That’s what makes the results over the last two quarters so disappointing.
We are confident in our strategy and committed to our plan, and we are focused on reversing the recent trends, which we believe to be short-term. Maximizing shareholder value remains our top priority.
Due to increased interest in our direct-to-consumer platform, as well as inquiries regarding our expertise in video commerce, product development and third-party logistics, we saw an opportunity to explore strategic options.
Video commerce is more relevant today than when we started on this journey three years ago. We believe that there is strong interest in our brand, in our access to over 87 million homes and in our proficiency in producing video and digital content that tells the story behind brands and products.
As we progress through this process, including reviewing a comprehensive list of ways to enhance shareholder value, we remain focused on growing our business, and are confident, that despite our recent financial trends, we are on the right path.