Eve Sleep trades above expectations in first half of 2020

Eve Sleep has traded above board expectations in the six months ended 30 June 2020, with the online mattress brand benefiting from customers shifting to eCommerce during the Covid-19 crisis.

In a trading update published today, the retailer said a strong performance in May and June has enabled it to bounce back from a drop in sales in the initial stages of the Covid-19 lockdown introduced in March. Eve added that this momentum has continued into July, “buoyed by a strong homewares market, effective and efficient marketing and eve's online-focused proposition”.

As a result, Q2 revenue grew 25% year-on-year. Overall sales reached £12.2 million over the first half of 2020, which is £0.7 million lower than in the same period in 2019, although this is above expectations.

Eve said it had also budgeted for a drop in revenues as it continues pursuing a strategy of profitable sales, which involves improving cost-efficiency in areas like marketing.

Cheryl Calverley, CEO of Eve Sleep commented: "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. 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."

In its previous trading update published in May, the Eve outlined how its eCommerce model had enabled it adapt quickly to the Covid-19 crisis.