Eve losses deepen but progress made with rebuild strategy

Eve Sleep has reported an increase in full-year losses which have risen from £19 million to £20.3 million. For the full-year ending 31 December 2018, the online mattress retailer posted a 25% increase in revenue to £34.8 million, while gross profit was up 15% to £18.4 million.

Eve ran into difficulties last summer, when the retailer’s boss and co-founder, Jas Bagniewski, left the company after it admitted strategic mistakes and revealed sales fell short of expectations.

James Sturrock joined the business as CEO a few months later to review the business and rebuild the strategy which now focuses on three key pillars: differentiated brand positioning, expanded product range, and lower friction customer experience.

Commenting on the results, Sturrock said the company had made “good early progress” with its rebuild strategy and has secured funds to execute on it.

“As part of our pathway to profitability plan we have taken decisive action on our cost base, including a significant reduction in administrative expenses compared to 2018 along with a refocused and reduced marketing investment strategy removing inefficient activity.  When combined with the expected benefits of our rebuild strategy, we anticipate a significant reduction in losses in 2019,” he added.  

“The opportunity to create a sleep wellness brand remains undiminished and I am confident that eve’s rebuild strategy, centred around a differentiated brand positioning, expanded product range, lower friction customer experience, combined with increasing brand awareness will win out over peers. Our new approach focuses on sustainable growth and sets out a clear path to building a profitable business, which delivers for shareholders.”

The eCommerce retailer also announced that its CFO, Abid Ismail, is stepping down as company director. He will remain in the position until the summer while the company looks for a replacement.

Essential Retail recently chatted to Eve's CEO, James Sturrock, and new CMO, Cheryl Calverley, to learn about the new strategic vision for the company and how it plans to use technology and marketing to stand out in a crowded market. Listen to the Eve Sleep episode of the Retail Ramble podcast below:

What’s Hot on Essential Retail?