Shares of bedding provider Mattress Firm (MFRM) are sinking after the company’s fourth quarter results, as well as its first quarter and fiscal 2016 profit outlook, fell below analysts’ consensus estimates. The company also announced the replacement of its chief executive officer.

WHAT’S NEW: After the market close on Monday, Mattress Firm reported Q4 adjusted earnings per share of 53c and revenue of $618.6M, trailing expectations of 56c and $622.36M, respectively. The company said Q4 same store sales grew 0.7% in the quarter, a decline of 1.9% year-over-year. In the quarter, the company reported 75 store openings, 20 closures, and 9 store acquisitions. Looking ahead to Q1, Mattress Firm forecast adjusted EPS of (7c)-0c, which is well below analysts’ estimates of 30c. In explaining the weak guidance, the company cited the immediate dilution from financing the Sleepy’s acquisition combined with the expectation that Sleepy’s will continue to be approximately breakeven at the adjusted EBITDA level in Q1, as well as the time required to capture synergies from the Sleepy’s business and implement other initiatives. For FY16, Mattress Firm forecast adjusted EPS of $2.50-$2.60, also far below the consensus of $2.72. FY16 revenue is seen at $3.95B-$4B, ahead of the consensus of $3.86B. The company also sees FY 16 SSS growth of 4%-5.5%, including a 300 basis point impact from inclusion of Sleepy e-commerce and multi-channel sales businesses, and expects FY16 net new store growth 180-200, and acquired store growth of 1,063.

EXECUTIVE CHANGES: In addition to the disappointing quarter and outlook, Mattress Firm announced that Ken Murphy has been appointed president and CEO, and that Steve Stagner will assume the role of executive chairman of the company and chairman of the board of directors. Stagner has served as the CEO of Mattress Firm since 2010. Murphy joined Mattress Firm in 1998 and has held multiple leadership roles within the company.