Eve Sleep halves EBITDA loss
Bed and mattress retailer Eve Sleep has seen its EBITDA loss halve in the first half of the year.
In the six months to 30 June, its underlying EBITDA loss was reduced by 50% to £5.9 million. The company attributed the improvement to a focus on just three markets, more efficient marketing and a reduction in overheads.
Eve Sleep previously predicted that revenue growth would be weighted to its second half. First half group underlying revenue decreased by 8% to £12.9 million. However, sales in the UK and Ireland were broadly flat at 0.9% below the same period last year. Meanwhile, revenue in France was down 29% due to a decision to prioritise margin contribution over revenue growth.
The company expects revenue growth to return in second half following the launch of new marketing campaigns. It is also hoping benefit from new retail partnerships with Argos, Dunelm and Homebase.
Eve Sleep said it is on track to deliver a full year EBITDA loss reduction in line with expectations as it continues to focus on cost management. Full year revenue is expected to be slightly below previous guidance due to softer than expected market conditions in the first half of the year.
James Sturrock, chief executive of Eve Sleep, said: “I am pleased with the financial and strategic progress made in H1, against a backdrop of substantial retail headwinds and the current competitive nature of the category. We have a strong new team in place, and there are early signs that the rebuild strategy is driving meaningful improvements in our key metrics in both the UK&I and France.”
Eve Sleep is currently expanding its product range. The company said new items such as bed frames, storage, bedding and a baby collection are driving on-going improvement in the KPIs of customer repeat rate and sale of non-mattress products.
Sturrock added: “We have some exciting plans and partnerships launching and I look forward to seeing more progress against our strategy in some of the biggest peak trading periods for the business in the second half of the year.”
