Tucked near the bottom of its press release announcing its fiscal 2005 results, gifts merchant RedEnvelope (Nasdaq: REDE) noted that it has hired WR Hambrecht + Co. to help it seek “strategic alternatives to maximize shareholder value, including, but not limited to, the possible sale to, or merger of the business with, another entity offering strategic opportunities for growth.”
Annual sales for the San Francisco-based company grew nearly 12%, to 113.2 million for the 52 weeks ended April 2, compared with $101.4 million for the 53 weeks ended April 3, 2005. But the net loss grew too, to $5.6 million from $5.2 million.
“We are pleased with the growth of the business in fiscal 2006, but disappointed that we did not reach profitability,” CEO Ken Constable said in a statement. “However, we believe our brand is strong, our business model is sound, and our management team is experienced and confident. Our long-term outlook is positive, and we are committed to revitalizing and profitably growing our business.”