LONDON (Alliance News) - Shares in eve Sleep Ltd plummeted on Monday as its Chief Executive Officer left amid sales falling short of expectations for the first half of its financial year.
Shares in the online mattress retailer were a sharp 58% lower at 29.00 pence on Monday.
"While trading in the period has continued to far outperform the broader market for big ticket consumer items, sales have fallen short of expectations," eve Sleep said on Monday.
For the six months to the end of June, group sales were up by 61% to GBP18.6 million.
This revenue shortfall is not expected to be recovered in the usually stronger second half due to a pull back from non-core markets. As a result, UK profitability will be delayed from the fourth quarter of 2018.
eve Sleep said that for the six-month period trading patterns experienced greater volatility due to a challenging backdrop for consumer spending, as well as "strategic missteps" on management's part.
"Management has made some strategic missteps, underestimating what is required to develop a meaningful footprint across Continental Europe, while losing focus on creating an aspirational sleep brand in its core markets," the company said in a statement.
With "mutual consent", Chief Executive Officer Jas Bagniewski has stepped down from his role and the company, after founding the company in 2014. Chief Financial Officer Abid Ismail will take on his executive duties alongside his own.
Additionally on Monday, eve Sleep said it has signed a partnerships with bed retailer Dreams, which will see the eve mattress sold in 193 Dreams stores in the UK and online as well.
"We have fallen short of our own and the market's high expectations and as a result have taken the tough decision to make management change. Jas has, as one of the founders, been a driving force for this business and has much to be proud of. He leaves with the board's best wishes for the future. In tandem with the search for a new CEO we will with immediate effect be refocusing all of our efforts on strengthening the eve brand in our core markets," said Chairman Paul Pindar.
