Following poor results from the European rolled mattress company earlier this year, eve Sleep's new CEO, James Sturrock, has concluded a detailed review that outlines an updated strategy focused on the company's core markets (the UK and France) and maximising differentiation, range and customer experience.
eve reports that the review concentrated on the transformation of the business into "an ecommerce business model that builds a deeper repeat relationship with customers through a broader product range and stronger customer experience in order to drive a healthy customer lifetime value".
To do so, on top of some £7m of existing cash, eve plans to raise approximately £15m of new equity. The company says its has already received material levels of support for the planned fundraise from certain existing shareholders at a price that is significantly higher than the prevailing share price.
eve plans to more than double its product range in 2019 and improve website conversion rate. It has appointed a new CMO, who joins at the end of the year and will be tasked with optimising marketing effectiveness and growing eve's partnerships.
James comments: "The business review has reaffirmed my initial confidence in the size of the opportunity in the sleep market and eve's ability to realise it. It will however require further investment than originally expected.
"Our planned strategic investments will drive growth through expanding and developing our highly complementary product range and enhancing the overall customer experience and proposition, which will all serve to further strengthen our differentiated brand positioning.
"While we have revised our short-term growth ambitions during this period of consolidation and investment, we anticipate a marked improvement moving into 2020 and beyond. eve has an exciting future ahead and we look forward to putting the business on a stronger footing and establishing eve as Europe's leading sleep and well-being brand."
With six weeks of trading remaining in eve's current financial year, the business anticipates it will deliver revenues in line with or above its revised FY expectations, helped by the early success of its partnership with Dreams.