DALLAS (AP) -- Tuesday Morning Corp.'s former CEO Kathleen Mason said Thursday that she was surprised and disappointed by her dismissal.
The discount retailer announced late Wednesday that it had relieved Mason of her duties as president and CEO earlier this week. She was appointed to the post in 2009. It also announced several other management changes and lowered its financial outlook.
Tuesday Morning said its board decided it was the right time to transition leadership to a "new executive who will guide the company through its next stage." It promoted Michael Marchetti, its executive vice president and chief operating officer, to president and chief operating officer and appointed interim CEO.
Mason said in a statement Thursday that she was surprised and disappointed by the dismissal. She noted that the company has been profitable for 12 consecutive years, expanded as a chain and has no long-term debt.
"I encourage the management team to undertake the strategic initiatives we had planned to improve sale and efficiency as Tuesday Morning moves into the next phase of development," Mason said in a statement.
Tuesday Morning, which sells closeout housewares and home decor, reported in April that its third-quarter loss widened as fewer people visited its stores and bought less each visit. The company had planned to revamp its website and improve its marketing to help improve slowing sales.
The Dallas-based company said Wednesday that it now expects to earn 11 to 15 cents per share for the year, before the costs of the CEO hunt. That's down from its prior forecast of earning 13 to 16 cents per share. It forecast annual revenue of $810 million to $815 million, down from earlier guidance of $815 million to $820 million.
Tuesday Morning's shares fell in after-hours trading Wednesday but rose 17 cents, nearly 4 percent, to $4.57 in afternoon trading Thursday.