EVE.L Share News (EVE)

(Sharecast News) - Direct-to-consumer mattress merchant Eve Sleep updated the market on its trading following the important Black Friday trading period on Monday, reporting that the benefits from its completed 'rebuild strategy' were still being felt.
The AIM-traded firm said it was on-course to deliver a second consecutive year of revenue growth, in line with market expectations.

Notwithstanding strong November comparatives in the UK, Eve said its 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-pandemic 2019 comparative period.

The bedroom furniture category posted strong sales growth in November, up 14% year-on-year, representing what the board called a "pleasing" 7% of the overall sales mix during the period.

Within mattresses, hybrid mattresses remained the firm's "outstanding" performer, with Eve's original and premium hybrid mattresses taking over 70% of the mattress sales share.

The company said the new 'sleep-away' range performed far ahead of management expectations, with more than £50,000 in sales during the month as people prepared for their first Christmas guests in two years.

Although currently small in terms of the overall company, the Ireland market achieved one of its highest sales months ever in November, delivering 90% growth year-on-year and 480% against 2019 comparatives, reflecting an increased focus, market experience and marketing investment.

The France market remained 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 were of lesser significance in terms of trading importance compared with other territories, the board noted.

Eve said its supply chain had held up well, supported by "careful planning and strong relationships" with European suppliers and delivery partners, as well as its 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, while maintaining high levels of customer satisfaction, the company said it ensured that it offered its Black Friday promotions of varying levels over a greater proportion of the month, while also holding higher stock levels of core products going into the peak trading period.

"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," said chief executive officer Cheryl Calverley.

"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-19 and Brexit has brought, ensuring that customers can continue to order with confidence."

Eve Sleep said it would publish a more comprehensive trading update covering the whole year in January.

At 1217 GMT, shares in Eve Sleep were up 13.2% at 2.83p.