Eve Sleep has reduced its underlying EBITDA losses but continued to struggle against a “backdrop of substantial retail headwinds” as sales fell.
Eve Sleep posted a 0.9% dip in its UK and Ireland sales and a 29% drop in sales in its French division during the six months to June 30. Group underlying revenue for the same period decreased by 8% to £12.9m.
However, the mattress-in-a-box retailer cut its underlying EBITDA losses by 50% to £5.9m, which it attributed to “the refocus on just three markets, greater marketing efficiency and a reduction in overheads”.
The online retailer is expecting to return to growth in the second half of its financial year following the launch of new marketing campaigns and three new retail partnerships.
Partnerships have been signed with Argos, Dunelm and Homebase to sell its products through their online sites. The Argos partnership is expected to start around the end of this month, with Dunelm and Homebase’s launching later in the summer.
Chief executive James Sturrock said: “I am pleased with the financial and strategic progress made in H1, against a backdrop of substantial retail headwinds and the current competitive nature of the category. We have a strong new team in place, and there are early signs that the rebuild strategy is driving meaningful improvements in our key metrics in both the UK and Ireland and France.
“Our focus on reducing losses, while creating a differentiated proposition as a sleep wellness brand, will underpin the business and lay the path to long-term profitability.
“We have some exciting plans and partnerships launching and I look forward to seeing more progress against our strategy in some of the biggest peak trading periods for the business in the second half of the year.”
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