This is not a detailed discussion of Eve Sleep's investment case. I just wanted to share my mattress buying experiences and the relevance to Eve. Eve Sleep is capitalized at £175m and generated first half revenue in 2017 of £11.5m. This is a growth story with revenue in the first 11 months of 2017 up 130% on a year ago. The group had net cash of £37.2m at June 2017 and made a statutory loss of £9.1m in the first half of 2017. Neil Woodford is a major investor in Eve I believe.

Eve Sleep is one of the online mattress companies selling foam mattresses (without springs) and which typically have memory foam. They can be delivered rolled up in a box which helps to lower costs versus normal spring mattress delivery. These types of mattresses are different to spring mattresses in that you tend to fall deeply into them if you put pressure on only one area. There are a host of companies such as Simba, Casper etc. Made.com has also launched its own version called The One. The online only companies offer very generous trial and free return periods to entice customers.

I am a bit sceptical of this whole area as it appears to be a classic case of growth without profitability. It will remain fiercely competitive with very high marketing costs. Eve Sleep has made much of getting into a German department store. However, Simba is in John Lewis and I am not sure this is a game changer.  I went up and down Tottenham Court Road over a few days and popped into John Lewis three times to speak to sales people and try the mattresses.  Not one of the John Lewis people tried to sell me the Simba mattress and they seemed sceptical about it.  The overall mattress buying experience is painful!!!!!!!

I didn't find the foam mattresses revolutionary in any form really. They have disadvantages with memory foam overheating in summer. The reviews for these products seem to be manipulated. Department store retailers I spoke to were very sceptical of the hype. One store noted that a lot of their customers came from Eve (i.e. people who had returned the Eve mattress).

I can see why people want a new way of doing things. The mattress industry appears to be full of pushy sales people.…

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