Member Info for Starsailor2020

One note on Trustpilot. The eagle eyed may have noted that the main bulk of reviews are now ‘verified’ rather than ‘invited’. My basic checking seems to imply that eve have upgraded to an automated system for buyer reviews so we should get more frequent and a greater quantity of reviews coming through than previously (where I believe they would have to manually invite people to respond).

France and GB seem to have separate manufacturing and supply chains so should be fine. I imagine Ireland and NI may pose challenges with the extra costs related to the GB - NI and GB - ROI customs scenarios post Brexit.

Seems eve’s marketing campaign is about to begin ...
https://marcommnews.com/eve-sleep-encourages-the-nation-to-switch-off-before-bed-with-latest-campaign/

Hi Wyn. That’s a fair counter assumption. I see on their website that the lead times on mattresses are now pushed out to 8-9 weeks. That’s across the board so suggests maxed out capacity somewhere in supply chain so whilst I was optimistic and positive about demand, im hoping they can resolve any bottlenecks quickly.

I read that situation a slightly different way. To correct, I believe it’s 30% off the original not 50% (Likely to match competitors on this product type). Also, they are not discounting any other range suggesting that sales are robust enough without discounting required across the board. As an aside, the grey variant of the original has sold out - which seems incredibly positive when, as you say, it’s their largest line so assumedly was incredibly well stocked.

ONS figures out for Sept. Good trends for eve - spending overall up, homewares strong, online strong.

https://www.ons.gov.uk/businessindustryandtrade/retailindustry/bulletins/retailsales/september2020#a-closer-look-at-retail-sectors-in-september

That’s interesting on website traffic.

One related question (as I don’t watch much tv); has anyone seen any adverts related to the eve tv campaign they referenced in the interims as of yet?

On eve. I see that certain if the bed frames that were out of stock such as the ‘Storage’ are now back in stock. I’m going to make a couple of assumptions on that a) sales are good as items are selling out (and good to see that includes big ticket items) and b) eve have a good handle on inventory management as saleable stock seems to have replenished relatively quickly.

Out of interest, would anyone care to make a counter argument as to why eve should not have a v good Q4? They’re in a buoyant consumer area in homewares, they are predominantly online and they now have a broad range of products both for core market (mattress, bedding etc) and holiday season small item gifting (ie the well slept range).

And on that. I’m guesstimating that we’ll see wider market interest in mid to late Nov through Dec in anticipation of A FY trading update in Jan. Thing is with eve, it moves so quickly that it’s hard to call a date. So I’m happy to be in during this quiet period. DYOR etc etc

I think yesterday’s sells appear to have been absorbed as whoosh.. that spread widens again as the bid moves up and the ask moves even higher. I really do wonder what happens if we get a period of concerted buying pressure on eve.

Errhum - there seems to me surprising few like eve around in this market. I did look at G4M but too late and they’ve moved now and look fair value to me. So, like you I can’t see anything else comparable to eve re: an online retailer substantially undervalued with real ‘new normal’ growth potential.

Hi D-Geeman, Trades I have seen appear to have slightly less pronounced spread (closer to the reported trades). However, i find the wider the spread, the smaller the size the MMs appear to want to deal in. Basically, don't think eve is 'in play' at the moment. Not sure what the catalyst for the market to wake up and volumes to increase - i guess we may be waiting for the run up to FY results now unless there's another unscheduled trading update or something else to wake us up!

I doubt they are working a sell. I think it’s lack of buyers meaning the MMs aren’t desperate to take on stock. As we’ve seen though, the flip is demand and they find themselves scrambling for stock with pretty sharp moves upward.

My assumption is they have limited stock But due to the low volumes are not raising the bid - low liquidity. I suspect any concerted buying and this one moves fast. That said, I find calling the actions of MM not the easiest thing! Either way, happy to hold. Eve seem to me (with No debt and cash held) still one of the most significantly under appreciated stocks on the market. DYOR etc etc!

The spread on eve continues to be very wide. I see we had a relatively small 150k purchase and they widen the spread with the ask raised from 4.8 to 4.9.

I see Boots are now starting to receive stock as you can now purchase a couple of pieces of the well slept range on their website.

On a separate but related note, I also note that eve's website sales seem to be doing well. Anecdotal examples; the on sale tailored bed frame in charcoal is now sold out. The super king premium hybrid mattress (not on sale) sold out. Multiple ranges in the bed frame category sold out. The microfibre pillow sold out. Suggest eve are having a v good end to Q3, start to Q4. I suspect one of the hardest jobs for eve now is forecasting stocking levels for Q4 and in to 2021. Ie: how much is new normal and how much is demand spike.

Not eve specific but an insight in to the general market.
hxxps://www.theguardian.com/business/2020/oct/10/covid-boom-uk-furniture-firms-sitting-pretty

Eve again showing smart targeted publicity which is building their brand equity. I really really like their differentiation angle with the whole ‘sleep wellness’ positioning. I find this brand build as compelling as the sales growth strategy. There’s real currently unquantified value in what’s being achieved here.

Look at it this way, atleast the product (ie brand) is on the site so it’s getting eyes on. For me, that was the bigger prize than actual sales. I’m sure stock will be up soon too as most items are now available direct from eve.

For the big ticket items, I suspect people will wait. Once you’ve made a decision on that type of item, you’ll wait provided it’s not too long a time. Eve offering to remove your old mattress is also another nice touch and customer centric.