16th Jul 2021 10:39
eve Sleep PLC - London-based direct-to-consumer mattress retailer - Says UK & Ireland market had "good" first half, expects group revenue in six months to June 30 of GBP13.9 million, up 13% year on year. UK & Ireland revenue surged 18%, but notes French revenue down 8%, attributed to "minimal" marketing investment in the first quarter ahead of a new TV campaign - which was launched in May.
Notes, versus pre pandemic revenues in the first half of 2019, UK & Ireland sales were 15% higher.
"Growth was primarily online, with a softer performance from retail partners, reflecting lock down restrictions over the first quarter and to some extent the permanence of channel shift to ecommerce," company says.
Adds: "Demand was particularly strong for eve's hybrid mattress range and premium bed frames, with accessories such as the morphee sleep aid and the weighted blanket, and add-ons such as the temperature balancing protector driving materially higher basket values."
Notes visiblity for second half remains "limited" but points to strenghtening consumer confidence and elevated personal savings.
"These positive demand factors bode well for the retail sector and eve, and as yet the business has seen no signs of a return to pre-pandemic shopping behaviour, suggesting the online momentum continues. However, the future path of the pandemic is unclear and the risk of further shocks and disruption to the economic recovery remains," eve says.
Expects second half revenues in line with expectations.
Current stock price: 4.00 pence, down 13% on Friday
Year-to-date change: down 19%
By Paul McGowan; [email protected]
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