Evine Live says it is exploring a sale as it seeks path to stable profits

Eden Prairie cable shopping channel Evine Live said Wednesday it is exploring strategic alternatives that may include a sale or strategic partnership to help propel it to long-term profitability.

The company made the announcement as it released its fiscal fourth-quarter results. Its shares rose sharply on the news, ending the day up 17 percent at 47 cents.

"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," Bob Rosenblatt, Evine's chief executive, said in a conference call with investors.

Evine has been rumored in the past to be in discussions with Amazon, after a report in TechCrunch. In 2017 it rebuffed acquisition attempts by outside investors, including a former Evine executive.

In January, Nasdaq warned the company that it was in danger of being delisted from the stock exchange because its stock was trading below $1 at the closing bell for 30 consecutive business days. It has until July 15 to come into compliance.

Evine Live is a distant third-place player to QVC and HSN in cable TV-based home shopping. It has felt the squeeze in recent years as younger consumers have cut the cord from cable and online retailers such as Amazon have risen in prominence.

Activist shareholders took control of its board in 2014 and put in new management. In 2016, Rosenblatt, then the board chairman, retook the helm after a CEO departed.

During the latest quarter, Evine launched Serious Skincare, co-founded by Jennifer Flavin-Stallone, and announced a collaboration with Jane Fonda, who is developing an exclusive brand for it.

The company reported a net loss of $10 million and an 18 percent decline in sales to $157.6 million for the period ending Feb. 2. The same period a year ago was a week longer. Adjusting for that calendar difference, sales were down 11 percent. Evine earned $6.4 million in the year-ago period.

With a potential sale afoot, Evine executives provided guidance for only the first quarter of its new fiscal year. It forecasts sales to drop 12 to 14 percent to a range of $134.5 million to $137 million. Its adjusted profit before interest, taxes and other expenses is expected to range from a loss of $5.5 million to a loss of $7 million.

For its full fiscal year, Evine reported a loss of $22 million on sales of $596.6 million, which were down 8 percent. Results were hurt by slow sales in the second half of the year, traditionally a retailer's busiest season with back-to-school and holidays.