Mattress maker eve Sleep today reported overall revenue growth of 13 per cent in the first half of 2021, reaffirming full-year expectations.
Despite increased sales, shares in the London-based company were down over 15 per cent early morning.
eve Sleep said sales growth was primarily online due to coronavirus restrictions, but suggested the trend to e-commerce may be a permanent shift.
While the company, founded in 2014, operates in the UK, Ireland and France, performance was stronger in the UK and Ireland (UK&I) market.
UK&I revenues increased 18 per cent year-on-year, with sales 15 per cent higher compared with pre-pandemic revenues in the first half of 2019.
French revenue was down eight per cent year-on-year for the company at £2.2m. It said this was because little was spent on Q1 marketing in anticipation of a new marketing campaign launched in May.
eve Sleep said it expects 2021 second half revenues to be in line with expectations and minimal cash flows as personal savings accrued over the pandemic will bolster consumer confidence.
The company also said that previous supply challenges are no longer present. However, while eve has upped its stock holdings, it does not rule out new pandemic-related disruption arising.
Cheryl Calverley, CEO of eve Sleep said:
“First half revenue growth of 13% is a pleasing result, and in line with our expectations. Our UK business is up 15% on pre pandemic revenue levels reported in H1 of 2019. The balance across sales channels has shifted somewhat, but the overall business is in good health. The start of our investment programme in France has been very encouraging, and we look forward to seeing this campaign power our business performance over the next two years, replicating the progress we have seen in the UK.
Maintaining excellent customer service in the face of fluctuating demand and supply chain challenges has been a core focus for us, and the decisions we have taken to improve the resilience of our business through increasing our stock holding and investing in our operational and people capability have undoubtedly underpinned the good H1 performance. We enter the second half of the year with confidence.”