Eve sees shares drop again
Eve Sleep has continued to see its share price drop following disappointing sales performance.
Shares this morning dropped more than 13% to £3.40 as investors continue to react to poor half-year results. Last Thursday the share price ended the day at £4.60 before plunging to £3.70 soon after opening on Friday, ending the day at £4.00.
The mattress firm had told investors that sales in the UK and Ireland had grown by 18% in the six months to 30 June, despite non-essential retail being closed for a large part of the period.
‘The UK and Ireland market had a good first half with revenue growth of 18%, notwithstanding more challenging comparatives in the second quarter. Compared with pre-pandemic revenues in H1 2019, UK&I 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,’ says the company.
‘Demand was particularly strong for the 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. Eve continues to benefit from the Which? survey which rated eve's original and its premium hybrid the two best mattresses in the UK, and Que Choisir which ranks the premium hybrid as the best mattress in France. UK marketing investment was front half weighted, increasing to 29% of revenue (2020 H1: 27%) as a result of increased TV advertising, setting up a strong brand position for trading in the second half of the year.’