Eve Sleep first half revenue exceeds expectations
Bed and mattress brand Eve Sleep saw its revenue come in above expectations in the six months to 30 June.
Although it was down to £12.2 million from £12.9 million in the same period last year, there was 25% year-on-year growth in the company’s second quarter. Eve Sleep said a year-on-year reduction in revenues has been budgeted for as part of plans to prioritise profitable sales over chasing top-line growth.
In addition, the company reduced its underlying EBITDA by around 80% to approximately £1.2 million.
Eve Sleep said trading since the start of April has continued to build following some weakness in the latter part of March at the start of the Covid-19 lockdown. Furthermore, May and June trading was ahead of expectations with the momentum continuing into July. Sales of premium mattresses and bedframes were particularly strong.
The company attributed the growth to a strong homewares market, an effective marketing campaign and an online focused proposition.
Cheryl Calverley, chief executive of Eve Sleep, said: “Trading through this complex period has been robust and ahead of our previous expectations, and for the first time we have generated positive cash flow over a sustained period.
“Our goal of profitability draws ever closer as we continue to deliver our rebuild strategy, underpinned by growth in customer numbers, an increasing contribution from wider sleep categories, and improved marketing efficiency.”
Although trading since May has been ahead of expectations, the business has historically been second half weighted. Due to ongoing economic uncertainty, it has decided to leave its full year expectations unchanged at this time but said it is becoming increasingly confident of the out-turn for 2020.
Calverley added: “We are well placed to benefit from the accelerated shift to online ordering and the increase in spend on homewares as consumers increase investment in their homes. eve will continue to focus on driving value for our shareholders and building a sustainably profitable business with strong growth potential.”
