Eve Sleep plc: Trading update

Trading update

Healthy Black Friday and initial Christmas trading, supply chains solid, in-line with full year expectations 

eve Sleep ("eve", the "Company"), the direct to consumer sleep wellness brand operating in the UK, Ireland (together "UK&I") and France announces a trading update following the important Black Friday month trading period and ahead of its 31 December year end.

The benefits from the Company's completed rebuild strategy continue to come through, with eve on-course to deliver a second consecutive year of revenue growth, in-line with market expectations. Notwithstanding strong November comparatives in the UK, eve's UK e-commerce channel achieved sales order growth in the Black Friday month of 4% year-on-year and 64% when compared to the pre-covid 2019 comparative period. The bedroom furniture category in particular posted strong sales growth in November, up 14% year-on-year, and represented a pleasing 7% of the overall sales mix during this period. Within mattresses, hybrid mattresses remain the outstanding performer, with eve's high performing original and premium hybrid mattresses taking over 70% of the mattress sales share. The new sleep away range performed far ahead of management's expectations, with over £50,000 in sales during the month as people prepare for their first Christmas guests in two years. 

Although currently small in terms of the overall Company, Ireland achieved one of its highest sales months ever in November, delivering 90% growth year-on-year and 480% against 2019 comparatives, reflecting increased focus, market experience and marketing investment. The French market remains soft however, with strength in eve's store based partnership with Olivier Desforges, which reported its highest sales month to date, more than offset by industry wide weakness in e-commerce channels. Generally, in France November and Black Friday is of lesser significance in terms of trading importance compared with some other territories.

eve's supply chain has held up well, supported by careful planning and strong relationships with European suppliers and delivery partners, as well as the focus on mattress manufacturing with third party providers in the UK and Belgium. To further ease the pressures on the supply chain and courier partners, whilst maintaining high levels of customer satisfaction, the Company ensured that it offered its Black Friday promotions (of varying levels) over a greater proportion of the month, whilst also holding higher stock levels of core products going into this peak trading period. 

The Company plans to publish a more comprehensive trading update covering the whole year in January 2022.

Cheryl Calverley, CEO of eve Sleep commented:

"Following a strong Black Friday trading period and positive signs for Christmas, eve is on-course for a second consecutive year of revenue growth, demonstrating that our recovery is both sustainable and built on strong foundations. Our initial brand expansion beyond mattresses into bedframes is beginning to make a material contribution to revenue, and our wider ranges have continued to expand, further cementing our position as a sleep wellness brand, with recent additions including a non-alcoholic plant based three spirit nightcap drink, the gingko baton low glow night light and a range of CBD oils. I'm so very proud of this team, and the incredible way they work with partners, suppliers and each other to overcome the many and varied supply chain and operational challenges that COVID and Brexit has brought,   ensuring that customers can continue to order with confidence.

We are looking forward to 2022 with quite some eagerness and feel confident in delivering a third consecutive year of significant progress."

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