// Eve Sleep grows full year revenue following strong performance in UK and Ireland
// The retailer said “managed and mitigated” inflationary pressures and supply chain disruption throughout the year
Mattress brand Eve Sleep has marked its third year of revenue growth as lockdown drove shoppers online, with the retailer saying it “managed and mitigated” inflationary pressures and supply chain disruption throughout the year.
Group revenues were up £1.4m year-on-year at £26.6m, while gross profit stood at £14.7m, slightly higher than the £14.4m in 2020.
On a two-year basis, revenue was up 11% despite a 40% reduction in marketing spend over the same period.
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The uplift was led by the retailer’s performance in its UK and Ireland market where revenues rose by 10% year-on-year and by 22% on two years ago prior to the pandemic. Within this, direct-to-consumer revenues were up 21% year-on-year and by 49% on two-year comparatives.
Cheryl Calverley, CEO of Eve Sleep, said: “Delivering a third year of growth in revenues and marketing contribution in our core UK&I business, notwithstanding the many external challenges faced during the period, demonstrates clearly the sustainability of our recovery and the success of the rebuild strategy.”
The retailer said the Covid related labour supply shortages it was impacted by in its fourth quarter had now abated.
Calverley added: ”There is no denying the challenges we will face in 2022 but the restructured business is in good shape, our offering greatly enhanced and our team as strong as ever.”
Giving an update on its performance in January and February, Eve Sleep said trading in the months was softer than in its strongest ever quarter last year when the UK was subject to lockdown restrictions, but was up 6% on the same time in 2020.
Meanwhile, revenues at Eve Sleep’s French business declined by 13% in the year to £4 million.
Looking ahead, the business said: “Whilst there are heightened geopolitical uncertainties and the path for consumer spending is currently unclear for the year, our targets on growth and UK & I profitability remain.”
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