Eve Sleep losses rise but turnaround plans make progress

The mattress and sleep specialist posted a statutory loss of £20.3m, versus £19m last year, on sales up 25% to £34.8m.

On an underlying EBITDA basis, Eve Sleep’s losses rose 4.1% to £19.2m in the year to December 31, 2018.

After hitting trouble, Eve Sleep refocused on a smaller number of core markets and last September appointed James Sturrock as chief executive to put the business back on track.

He has initiated a “rebuild strategy” based upon three pillars – differentiated brand positioning, an expanded product range and a “lower friction” customer experience.

Sturrock said: “We have made some good early progress with our rebuild strategy and have secured the funds to execute on it.

“As part of our pathway to profitability plan we have taken decisive action on our cost base, including a significant reduction in administrative expenses compared to 2018 along with a refocused and reduced marketing investment strategy removing inefficient activity.  

“When combined with the expected benefits of our rebuild strategy, we anticipate a significant reduction in losses in 2019.”

“The opportunity to create a sleep wellness brand remains undiminished and I am confident that Eve’s rebuild strategy, centred around a differentiated brand positioning, expanded product range, lower friction customer experience, combined with increasing brand awareness, will win out over peers.

“Our new approach focuses on sustainable growth and sets out a clear path to building a profitable business, which delivers for shareholders.”

Eve Sleep also said that chief financial officer Abid Ismail will step down in the summer and a search for his replacement will begin shortly.

Chief operating officer Felix Lobkowicz is also leaving. Chief brand officer Kuba Wieczorek will move from being a full-time team member to a part-time consultant.