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Eve Sleep sees improved trading following initial lockdown weakness
22nd Jul 2020 10:06
(Sharecast News) - Sleep wellness brand Eve Sleep said on Wednesday that trading since the start of April had continued to build through the period following some weakness in the latter part of March during the initial stages of lockdown.
Revenues for the six months ended 30 June were expected to be approximately £12.2m, a slight drop from the £12.9m recorded during the same period a year earlier, after a 25% year-on-year improvement in the second quarter.
Eve also said marketing costs as a percentage of revenues had dropped from 51% to 25%, helping the firm cut interim underlying losses by approximately 80% to £1.2m
The AIM-listed group added that May and June trading was ahead of expectations, with the momentum continuing into July - buoyed by a strong homewares market, effective and efficient marketing and its online-focused proposition.
Chief executive Cheryl Calverley said: "Trading through this complex period has been robust and ahead of our previous expectations, and for the first time we have generated positive cash flow over a sustained period. Our goal of profitability draws ever closer as we continue to deliver our rebuild strategy, underpinned by growth in customer numbers, an increasing contribution from wider sleep categories, and improved marketing efficiency.
"We are well placed to benefit from the accelerated shift to online ordering and the increase in spend on homewares as consumers increase investment in their homes."
As of 1005 BST, Eve shares had shot up 17.40% to 2.03p.
Revenues for the six months ended 30 June were expected to be approximately £12.2m, a slight drop from the £12.9m recorded during the same period a year earlier, after a 25% year-on-year improvement in the second quarter.
Eve also said marketing costs as a percentage of revenues had dropped from 51% to 25%, helping the firm cut interim underlying losses by approximately 80% to £1.2m
The AIM-listed group added that May and June trading was ahead of expectations, with the momentum continuing into July - buoyed by a strong homewares market, effective and efficient marketing and its online-focused proposition.
Chief executive Cheryl Calverley said: "Trading through this complex period has been robust and ahead of our previous expectations, and for the first time we have generated positive cash flow over a sustained period. Our goal of profitability draws ever closer as we continue to deliver our rebuild strategy, underpinned by growth in customer numbers, an increasing contribution from wider sleep categories, and improved marketing efficiency.
"We are well placed to benefit from the accelerated shift to online ordering and the increase in spend on homewares as consumers increase investment in their homes."
As of 1005 BST, Eve shares had shot up 17.40% to 2.03p.