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Mattress maker Eve Sleep today announced overall revenue growth of 13% in the first half of 2021, reaffirming expectations for the full year.
Despite the increase in sales, shares of the London-based company fell more than 15% early in the morning.
Eve Sleep said sales growth was mostly online due to coronavirus restrictions, but suggested the e-commerce trend could be a permanent change.
While the company, founded in 2014, operates in the UK, Ireland and France, the performance has been better in the UK and Ireland (UK&I) market.
UK and Island revenue grew 18% year-over-year, with sales 15% higher than pre-pandemic revenue in the first half of 2019.
French revenue was down 8% year-on-year for the company to £ 2.2million. He said this was due to little spending on Q1 marketing in anticipation of a new marketing campaign launched in May.
Eve Sleep said she expects revenue for the second half of 2021 to be in line with expectations and minimal cash flow as personal savings accumulated during the pandemic will boost consumer confidence.
The company also said the previous supply issues were no longer present. However, if eve has increased its stocks, that does not exclude the appearance of new disturbances linked to the pandemic.
Cheryl Calverley, CEO of eve Sleep said:
“The sales growth of 13% in the first half of the year is a satisfactory result and in line with our expectations. Our UK business is up 15% from pre-pandemic revenue levels reported in H1 2019. The balance between sales channels has changed somewhat, but overall business is in good shape health. The start of our investment program in France has been very encouraging, and we look forward to seeing this campaign fuel 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 at the heart of our concerns, and the decisions we have made to improve the resilience of our business by increasing our inventory and investing in our operational and human capacities undoubtedly supported the good performance of the first half. We are entering the second half of the year with confidence.
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