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Mattress Firm stock plunges after bigger-than-expected loss

 Mattress in the garbage, plunge
Thomas Lohnes | Getty Images

Mattress Firm's stock dropped more than 12 percent Friday after reporting a larger-than-expected loss.

The company posted an adjusted fiscal first-quarter loss of 10 cents a share, 6 cents wider than forecast. The firm's revenue also came in light of estimates.

"We are disappointed in our first quarter results, as we experienced unrelated challenges in three primary areas," Executive Chairman Steve Stagner said. "I am proud to say that our team worked tirelessly to move the organization past these challenges, and we are now better positioned to execute on our long-term strategy, as we build a national chain under the Mattress Firm brand."

Analysts at Wedbush Securities cut their price target on the stock to $30 from $38. "For shares to start climbing higher again, MFRM needs to show it can deliver more consistent and higher quality results at the same time it integrates its acquisitions," they said in a Friday note to clients.

Mattress Firm struggled in the past year with its stock dropping nearly 50 percent.

Mattress Firm 1-year performance

Disclosure: Wedbush is a market maker for Mattress Firm.