Mattress Firm is tanking after announcing terrible earnings and a new CEO
Shares of Mattress Firm are tumbling after the company missed on earnings and announced the immediate replacement of its CEO Tuesday.
The mattress and bedding retailer reported earnings of $0.53 per share, lower than analyst expectations of $0.56 per share. Additionally, the company released full year guidance of $2.50-$2.60 a share which was lower than the $2.72 per share forecast.
Adding onto the disappointing profits and outlook, Mattress Firm announced that CEO Steve Stagner would assume the role of Executive Chairman while President Ken Murphy would take over as CEO. Stagner had been CEO since 2010 and helped the company go public in 2011 according to a release.
"We have a tremendous opportunity ahead now that we have assembled a national footprint," said Stagner in the release. "Ken has been preparing for this role throughout his career. He is an incredibly strong operator and has already begun implementing his plan to drive results with a laser focus on store productivity."
After the disappointing results, shares of the company have dived over 13% around 10:20 a.m. ET, to $37.16 a share from yesterdays close of $42.69.
Google Finance
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Having an regional accent can be bad for your interviews, especially an Indian one: study
- Dirty laundry? Major clothing companies like Zara and H&M under scrutiny for allegedly fuelling deforestation in Brazil
- 5 Best places to visit near Darjeeling
- Climate change could become main driver of biodiversity decline by mid-century: Study
- RBI initiates transition plan: Small finance banks to ascend to universal banking status