Online mattress retailer eve Sleep has boosted revenues by 130% in the first 11 months of the year, the company said on Wednesday.
Eve told investors: “Trading in the UK has been stronger than expected and is anticipated to be up over 105% year-on-year over the same period, while international revenues are expected to increase more than 180% year-on-year.”
The startup, which listed on the AIM stock exchange in May, said it remains on track to hit UK profitability in the fourth quarter of this year and reach group profitability next year.
Founded in 2014, Eve sells just one mattress that it manufacturers itself and sells for £399 for a single bed. Eve’s mattresses are made from foam and compressed to make them cheaper to ship. The company offers buyers the opportunity to sleep on its products for 100 days and still return it, another unusual quirk for the industry.
Eve said at the time of its IPO that the £35 million it raised would be put towards marketing but the business said on Wednesday that it is now cutting marketing costs to help spur profit. Marketing spend fell from 64% of revenues in September to 50% of revenues in October. The business said it is on track for marketing costs of 35% of revenues in November.
CEO Jas Bagniewski said in a statement: “We continue to be in a period of acceleration with strong momentum across our 15 territories.
“eve is making good progress towards its objective of achieving UK profitability in Q4 2018, demonstrated by the UK business now anticipated to report a maiden profit after marketing costs in Q4 this year, a significant improvement on the first half of the year.
“We look forward to continuing our expansion as we drive towards achieving our plans for 2018 and beyond.”
Eve’s share price jumped 12% at the open.
Investors are likely cheered that eve is managing to hold its own in what has become a fiercely competitive market. Eve is one of a number of new startups that manufacture hybrid foam mattresses and sell them online. Others include Casper, SIMBA Sleep, and Leesa.