Jas Bagniewski, CEO of Eve Sleep, resigns following reports that first half sales are up 61%

Published on 02-07-2018 07:57:29
Author Paul Hickman

In part this is a traditional story for a small company just a year post IPO. Expectations have not been met and heads must roll. No matter that what has been delivered would be the envy of terrestrial competitors.

What is the market to make of the resignation of Jas Bagniewski, CEO in the same announcement that reports first half sales are up 61%?

In part this is a traditional story for a small company just a year post IPO. Expectations have not been met and heads must roll. No matter that what has been delivered would be the envy of terrestrial competitors.

Lying behind this, however, is a question of judgment. Management, the report says, underestimated what is required to develop a meaningful footprint across continental Europe, while losing focus on its core markets. It should not be a surprise that the consumer demand weakness that has hit the High Street has not left online retailers entirely unaffected, although there have been few reports of this to date. eve Sleep trades in consumer durables, a vulnerable area when customers become concerned for personal finances.

The second half, therefore, looks challenged. Trading conditions that held back the first half remain and the shortfall won’t be recovered. Expansion plans are being curtailed as the company revisits each of its European markets to determine which is core, so that profitability will be impacted from Q4 of 2018. And in addition, it isn’t stated explicitly in the reports, but we would expect that the withdrawal from a number of markets is itself likely to bring a significant one-off cash cost.

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