‘John Lewis of sleep’: Eve Sleep shares sink 30 per cent despite accelerated lockdown growth
Mattress retailer eve Sleep has reported lifted group revenue growth on 2019 levels with sleepy shoppers keen to opt for premium products.
However the ‘sleeptailer’ saw shares sink 30 per cent on Wednesday after admitting Covid infection rates had “placed additional strain” on deliveries.
The group posted two year group revenue growth of 11 per cent while UK & Ireland revenue increased 22 per cent to £22.5m.
Premium ranges now account for over 40 per cent of revenue, eve said in an update for the full year ended 31 December 2021.
However, the group admitted that high Covid infection rates “placed additional strain on the delivery network resulting in customer service challenges” over the Christmas trading period.
The mattress retailer dubbed these challenges “short lived” and said it expects customer experience to return to “usual high levels over the next few months.”
Eve Sleep CEO Cheryl Calverley told CityA.M. the share dip was down to people “expecting surprises” from the group’s trading update yesterday.
“There’s a trend for shares to go up in weeks before results and then drop down in line with expectations,” she explained.
“Investment in sleep is massively in growth,” Calverley added. “We are the John Lewis of sleep wellness,” she said, comparing rival Emma to Aldi or Lidl.
“We have grown on 2020. For us, that is astonishing given 2020 accelerated us above our plan,” she said.
While the 1980s saw a fitness boom and the early 2000s gave rise to nutrition, Calverly branded the current era as “the decade of sleep.”
The firm has expanded beyond selling mattresses and is now offering customers six categories focusing on different types of ‘sleep wellness’.
Calverley added: “In order for someone to trust you to help them sleep, you need a premium brand.”
“The strength of the brand allows us to enter new categories,” she said.