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Newly listed eCommerce player Eve Sleep doubles sales

Eve Sleep announced it doubled sales in the 12 months to 31 December, in its first year as an AIM-listed retailer.

The digital-first mattress and pillow retailer reported revenue of £27.7 million, which represented growth of 132% year on year. Due to investments in marketing and infrastructure as it built its brand in the UK and internationally, the three-year-old company reported a statutory loss before tax of £19 million.

Eve Sleep describes itself as an eCommerce-focused, direct-to-consumer European sleep brand, and its designs and sells its own-branded range of products, which includes pillows, sheets and duvets.

Whereas the UK-based company is focused on the design, branding, marketing and the selling of its products, other operations such as manufacturing and fulfilment are outsourced. It lists Adyen, Yotpo, Gophr and PayPal among its payment, marketing and delivery supplier partners.

Commenting on the annual results, Eve Sleep CEO Jas Bagniewski said: "In what is just our third year of operation we have more than doubled sales and driven substantial improvement in gross margins, whilst raising £35 million of growth capital from our listing on AIM.

“Our progress was strong in H1, and accelerated further in H2, giving a full-year growth rate of +132%. This step up in growth was evident in the UK and our international markets and was secured in tandem with a further and substantial improvement in marketing efficiency.”

He added: “We are building a sizeable business across Europe that we believe will continue to win market share from traditional operators as the £26 billion sleep market continues to transition online. 

“Our results to date demonstrate that we have a winnable customer proposition in both the UK and continental Europe and have a management team that can execute. We are still targeting to achieve UK profitability at the end of 2018 and group profitability by the end of 2019." 

Although an online-first retailer, Eve Sleep said it has seen considerable growth through omnichannel activity in 2017. This was mainly attributed to the acceleration of partnerships in the UK with the likes of Amazon, Debenhams, Next Home and Fenwick.

Two significant deals were signed in Germany towards the end of 2017, too, with Otto Group and Karstadt starting to stock Eve Sleep mattresses.

By the end of 2017, Eve had a physical presence in 145 stores across UK and Germany compared to just one store in 2016. It said that omnichannel accounted for 14% of group revenue in the year and generated £4 million in revenue.