Eve Sleep exceeds expectations in 2020
In its full-year update, the group said it has ‘undoubtedly’ benefited from an accelerated shift to e-commerce and rising popularity of homeware as a result of the pandemic
Eve Sleep has announced that full-year trading has exceeded expectations, with total revenue up by 6% to £25.5m, boosted by 18% growth in its second half of trading.
It comes as the retailer said it has “exited 2020 in far better shape than it entered the year”, having developed a more “resilient and efficient” technology, logistics and operational platform.
The group has also reduced its losses throughout the year, ahead of initial expectations, with EBITDA losses cut by 81% to £2.0m, down from a loss of £10.7m in 2019.
In its full-year update, the group said it has “undoubtedly” benefited from an accelerated shift to e-commerce and rising popularity of homeware as a result of the pandemic.
It added that the group has developed a “broader” brand presence through widening its product set, with new sleep wellness products including a weighted blanket and the introduction of a sleep gifts range.
It has also focused on strengthening its mattress range, which led to Which? recognising its original hybrid and premium hybrid as the two best mattresses in the UK, which led to further growth.
Despite facing issues with the availability of raw materials and component supply, the group said that trading in the first few weeks of the year has started well, following the same “positive trends” seen in recent months.
Looking ahead, Eve Sleep said it will use the upcoming year to focus on growth opportunities in the UK and beyond in order to “build a stronger, broader and larger, profitable business”. It will particularly focus investment on its existing French market.
Cheryl Calverley, CEO of Eve Sleep, said: “Our business reset is largely complete and our growth has accelerated more quickly than we initially anticipated as a result of the shift to online and the current strength of the homewares market.
“We have exceeded our financial expectations for 2020, which were raised twice during the year, extended our product ranges, opened new sales channels, increased brand awareness, presence and recognition, with the winning of the Which? awards, and improved the strength and resilience of our technology, logistics and operations platforms.”
She added: “In 2021 we will invest in growth initiatives across our business, particularly in France, where we see good opportunities to scale, whilst continuing to build on the current UK momentum.
“We are confident in the near-term outlook and although there is a high level of uncertainty as to the macro-economic backdrop and spending habits of consumers in the second half of the year, we have entered the new financial period with a much improved proposition, a stronger Balance Sheet and a more resilient business.”
