Eve Sleep has broken even for the first time during the fourth quarter of its financial year as it remained on track to slash losses.
The online mattress retailer said it made “significant further cost reductions” during the quarter ending December 31, 2019 to break even at an operating level.
Eve insisted that “trading in the last four months of the year is more indicative of its prospects for 2020”.
The etailer said moves to prioritise long-term profitability over short-term sales growth by carrying out “more efficient” marketing, targeting “higher quality” website traffic and streamlining its cost base have slashed EBITDA losses by £10.8m – or 43% – across the year.
It said “cash burn” was slashed 51%, with overhead costs down 27% compared with 2018.
Sales in its core markets, however, tumbled 18.8% in 2019 to £23.8m, despite the expansion of its product ranges and new retail partnerships with the likes of Argos, Dunelm and Homebase.
Eve boss James Sturrock said: “We are delivering on our priorities of reducing losses and stemming cash burn as we prioritise profitability over sales growth at any cost.”
He added: “We are well placed to make further significant progress in 2020, with a differentiated brand position, a broader product range than peers and ongoing improvements to the customer experience, supported by a lower cost base, a substantial cash balance and no debt.”
Eve will unveil its full-year results on March 24.
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