Mattress Firm's stock 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.

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