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Eve Sleep has announced that group revenue was “ahead” of expectations at £12.2m for the half-year period ended 30 June 2020.
While this marked a decline from the £12.9m reported the year prior, the retailer noted that the second quarter of the year saw sales surge by 25%.
In addition, the group budgeted for a year-on-year reduction in revenues through prioritising profitable sales over “chasing top-line growth”, a strategy that halved marketing costs as a percentage of revenue to 25%.
This additional cost and marketing efficiency saw the group’s negative EBITDA rise from £5.9m to £1.2m, marking an 80% improvement on losses, again ahead of the board’s expectations.
Cheryl Calverley, CEO of Eve Slee, 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.”
She added: “These achievements have only been made possible by our experienced and highly capable team who have shown remarkable resilience, engagement and commitment throughout.
“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.”
