Eve Sleep sales soar as UK trading exceeds expectations

The business said in its fourth quarter update that sales for the first 11 months of the year were expected to have grown 130%.

UK sales outperformed expectations, rocketing 105%, while international revenues soared 180%.

Eve attributed its growth to its high marketing spend, which it intends to lessen over time in order to become profitable. Marketing spend over its first half was 64% of total revenue, with that figure falling to 50% during October. It is expected to come in at 35% for November.

Eve is expected to reach profitability in the UK by the fourth quarter of 2018 and at group level during 2019.

The retailer brought forward investment set aside for 2018 into 2017 in a bid to fuel international expansion, product development and retail partnerships.

It now sells in 146 stores across Germany and in the UK through partnerships with Debenhams, Next Home and Fenwick.

Chief executive Jas Bagniewski said: “We continue to be in a period of acceleration with strong momentum across our 15 territories.

“Eve is making good progress towards its objective of achieving UK profitability in Q4 2018, demonstrated by the UK business now anticipated to report a maiden profit after marketing costs in Q4 this year, a significant improvement on the first half of the year.

“We look forward to continuing our expansion as we drive towards achieving our plans for 2018 and beyond.”