• by Sarah Mahoney  @mahoney_sarah, February 2, 2017

That was fast. Stefan Larsson is out as CEO of Ralph Lauren, just months after taking the polo-pony reins from the company's founder. And the news comes as the company reports dismal sales results for the third-quarter of its fiscal year, with net revenue dropping 12% to $1.7 billion. North American sales suffered most, falling 15%. And wholesale results plunged 26%.

While the company says the results are consistent with its “Way Forward” turnaround plan, introduced by Larsson last year, observers are alarmed. “There is no getting around the fact that this is a dire set of results from Ralph Lauren,” writes Neil Saunders, managing director of GlobalData Retail, in his report on the quarterly results. “The wholesale division is in free fall, while retail sales remain firmly in negative territory. Both things, along with some costs from the transformation plan, have resulted in a sharp net income decline of 37%.”

The abrupt break with Larsson, hired last year to lead the turnaround team, is also concerning. “This sudden departure gives the impression of a brand in crisis, and we believe it signals significant internal wrangling over the future direction of the firm,” he says.

Larsson’s appointment made a big splash last year when many wondered how well an executive whose background included brands like H&M and Old Navy would fit in a fashion company revered for its luxury products. The move was widely interpreted as a way for Lauren, now 77, to step back.

“Stefan and I share a love and respect for the DNA of this great brand, and we both recognize the need to evolve,” says Lauren, in his statement about Larsson’s departure. “However, we have found that we have different views on how to evolve the creative and consumer-facing parts of the business.”

Saunders adds that while “Lauren should be respected for his significant achievements and his undeniable design talent, we are concerned by the orthodoxy of his leadership, under which questioning and fresh thinking are relatively rare. This, in our view, is not the way to reinvent a brand that has clearly lost its way.” He adds that younger consumers are cooling to Lauren’s preppy cool, and are turned off by its “old world, old money exclusivity.”