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Bed and mattress retailer Eve Sleep has revealed it is on course to meet its financial expectations for the year as its three-year rebuilding strategy starts to take hold.
The retailer revealed that for the first six months of the year ending 30 June, it saw revenues increase 13% to £13.9m.
It also saw its UK&I revenues jump 19% year-on year and 15% on H1 2019, as average order value in the UK grew 31% as mattress purchases were “increasingly accompanied with bedroom furniture, bedding and other sleep accessories from the growing range”.
However, this was partially offset as French revenues in H1 decreased 8% year-on-year on what it called “minimal Q1 marketing spend” ahead of a new marketing campaign and Covid-related retail partner store closures.
Despite the overall increase in revenues, Eve sleep saw its statutory losses before tax widen to £2.3m up from £1.3m the previous year.
Looking ahead, it said it has continued strong trading momentum in the UK&I with revenues ahead of board expectations at +46% for July and August against 2019 pre-Covid equivalents.
Group revenues in July and August also increased 1% year-on-year against “very strong
comparatives” and surged 26% on 2019 pre-Covid equivalents.
Cheryl Calverley, CEO of eve Sleep, said: “We are starting to reap the benefits of our three year rebuild strategy. Our UK&I business continues to go from strength-to-strength, with our re-engineered supply chain able to meet continued strong demand, with sales up 46% in July and August on 2019 pre-Covid comparatives.
“The ongoing expansion of the product ranges is gaining traction, with new accessory ranges driving growth in customer numbers, customer repeats and average spend through the year. This gives us increasing confidence for the full year outturn for the UK&I, which we expect to generate a healthy profit pre overheads for the second consecutive year.”
She added: “Our focus for the next 12-18 months is on delivering a core UK business that is both growing and sustainably profitable, whilst building our scale in France to generate a similarly accretive business there in the medium term.
“To achieve these growth objectives we continue to expand our sleep wellness offering with a strong pipeline of new products for the second half of the year, alongside the launch of our personalised sleep content engine, which will serve information to customers on a wide range of sleep related topics, further creating a differentiated business which meets a fundamental and growing customer need and derives as a result improving profitability.”
