Revenues down but eve Sleep optimistic
D2C mattress brand eve Sleep achieved revenues of £23.8m (down from £29.3m in 2018) in the UK, Ireland and France in 2019.
It also achieved a -43% YoY reduction in full-year EBITDA losses (£10.8m), a -51% reduction in cash burn, and reduced overheads by -27%. The brand attributes these improvements to more efficient marketing, higher quality traffic, and a more streamlined cost base.
The company made significant cost reductions in Q4, leading to a trading situation which it believes to be more indicative of its prospects for 2020. In the last four months of the year, eve also broke even at an operating level (achieving a positive margin contribution after direct and marketing costs but before overheads) for the first time.
The period also saw eve launch retail partnerships with Argos, Homebase and Dunelm.
James Sturrock, CEO of eve Sleep, comments: “We are delivering on our priorities of reducing losses and stemming cash burn as we prioritise profitability over sales growth at any cost. We continue to create award-winning products to improve customer’s sleep wellness, as evidenced by our latest Which? Best Buy award for our premium hybrid mattress, while removing unprofitable sales and marketing.
“We are well placed to make further significant progress in 2020, with a differentiated brand position, a broader product range than our peers and ongoing improvements to the customer experience, supported by a lower cost base, a substantial cash balance and no debt.”