Eve Sleep losses hit £20m as CEO proposes “rebuild strategy”

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Eve Sleep losses
// Eve Sleep has initiated a “rebuild strategy” after reporting a full year loss
// It made a statutory loss of £20.3m in the year to December 31
// Underlying EBITDA losses increased to 4.1% to £19.2m

Eve Sleep has revealed a full year loss but has now initiated a “rebuild strategy” to sustain the company.

The online mattress retailer reported a statutory loss of £20.3 million in the year to December 31, compared to £19 million last year, on sales up 25 per cent to £34.8 million.

In addition, Eve Sleep’s losses increased 4.1 per cent to £19.2 million on an underlying EBITDA basis.

Moreover, the retailer hired new chief executive James Sturrock in September to maintain the business.

Sturrock proposed a “rebuild strategy” – differentiated brand positioning, an expanded product range and a “lower friction” customer experience.

“As part of our pathway to profitability plan we have taken decisive action on our cost base, including a significant reduction in administrative expenses compared to 2018 along with a refocused and reduced marketing investment strategy removing inefficient activity,” he said.

“Our new approach focuses on sustainable growth and sets out a clear path to building a profitable business, which delivers for shareholders.”

Meanwhile, Eve Sleep announced that chief financial officer Abid Ismail will resign from his role this summer and a replacement search will take place soon.

Chief operating officer Felix Lobkowicz is also due to step down, as chief brand officer Kuba Wieczorek will move in as a part-time consultant.

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