Eve Sleep slashes H1 losses but warns on full-year revenue
Mattress maker Eve Sleep said on Thursday that it has slashed its first-half losses but cautioned that revenue for the year is likely to miss its expectations.
Esr 2022
0.52p
16:30 31/10/22
FTSE AIM All-Share
755.28
17:14 26/04/24
In a trading update for the six months to 30 June, Eve said that in line with its expectations, it has cut its underlying operating losses by 50% to £5.9m thanks to a refocus on just three markets, greater marketing efficiency and a reduction in overheads.
However, it also warned that full-year revenue is expected to be slightly below previous guidance due to softer-than-anticipated market conditions in the first half.
Eve said group underlying revenue for the period fell 8% to £12.9m from the first half of last year.
UK and Ireland revenues were broadly flat during the half, down 0.9% on last year due to the planned reduction in H1 marketing investment, the "challenging" retail backdrop and a "highly promotional" mattress market. In France, revenue slumped 29%, reflecting the group's decision to prioritise margin contribution over revenue growth, and the additional work to localise and reposition the brand.
Eve, which launched a new UK TV campaign this month, also noted that it has signed new partnerships with Argos, Dunelm and Homebase.
Chief executive officer James Sturrock 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.
"Our focus on reducing losses, whilst creating a differentiated proposition as a sleep wellness brand, will underpin the business and lay the path to long-term profitability."
At 1433 BST, the shares were down 8.5% to 8.05p.