Covid-19: Eve Sleep’s online model ensures strong performance during crisis

Eve Sleep has reported that sales have been in line with its expectations in the four months up to 30 April 2020, despite the uncertainty caused by the Covid-19 pandemic. The online mattress retailer said its revenue improved in April and leading into May following some initial disruption when the crisis began in mid-March.

Eve added that its eCommerce business model enabled it to adapt quickly to the situation, with few supply chain issues. It also acknowledged it has benefitted “from the lack of high-street competition following the lockdown in March”.

The retailer has recently experienced a particularly strong demand for pillows, bedding, toppers and single mattresses recently as consumers adapted to lockdown life.

In the trading update, Eve confirmed it had a strong cash position, standing at £7.5 million by 30 April, and also achieved a positive marketing contribution for the period.

However, the online retailer acknowledged there is uncertainty regarding it performance for the remaining seven months of the financial year, especially with non-essential high street stores set to re-open from 15 June.

This is Eve’s first trading update since the appointment of Cheryl Calverley as CEO, who started her role on 12 May.

Calverley commented: “Eve has shown remarkable resilience through this complex period, with a robust supply chain and collaborative and responsive team culture. We have grasped the opportunity offered by the depressed TV market to run our existing, highly effective campaigns in both the UK and France, which have seen a strong response and resulted in further gains in marketing efficiency.”

She added: “I am confident that our online focused proposition, core strategy and breadth of our award winning product suite will enable us to navigate ongoing market uncertainty and the return of primarily store based competition.”

In March, Eve Sleep reported a significant increase in its gross margin figures in the year ended 31 December 2019.