Eve Sleep reports losses despite 132% sales rise

413
Eve Sleep

Eve Sleep has seen a triple digit growth in sales over the last year but still failed to make a profit thanks to ongoing costs after its initial public offering (IPO) last year.

In the 12 months to December 31, the online mattress retailer saw sales jump 132 per cent to £27.7 million, with both UK and international sales rising over 109 per cent and 174 per cent respectively.

Despite the massive growth in sales, Eve posted losses of £19 million, up from £11.3 million a year prior.

It attributed these losses to a one-off £2.1 million cost associated with its float last May.

It also cited significant investments in marketing as a cause for its widening losses, but the company said it was still targeting “UK profitability at the end of 2018 and group profitability by the end of 2019″.

Chief executive Jas Bagniewski added: “We are building a sizeable business across Europe that we believe will continue to win market share from traditional operators as the £26 billion sleep market continues to transition online.

“Our results to date demonstrate that we have a winnable customer proposition in both the UK and Continental Europe and have a management team that can execute.

The retailer, which now operates in 15 countries, said sales at the start of 2018 had already grown 94 per cent year-on-year.

Click here to sign up to Retail Gazette‘s free daily email newsletter