The Burberry CEO has been dismissed following the company’s profit warning.

British luxury brand Burberry is replacing its CEO after another disappointing quarter in which sales dropped by more than 20%.

Jonathan Akeroyd is leaving Burberry effective immediately, the company announced in its earnings release on Monday. He will be replaced by Joshua Schulman, a luxury wear veteran with previous CEO roles at Coach and Michael Kors. Akeroyd had been in the role for just two years.

A global slowdown in luxury goods spending has forced Burberry to issue a profit warning and cancel its dividend. The stock fell by 17% in midday trading on the London Stock Exchange.

Burberry chairman Gerry Murphy bluntly described the 168-year-old brand’s quarter as “disappointing” and noted that the luxury marketplace is “proving more challenging than expected.”

“We are taking decisive action to rebalance our offer to be more familiar to Burberry’s core customers while delivering relevant newness,” Murphy wrote. “We expect the actions we are taking, including cost savings, to start delivering an improvement in our second half, strengthening our competitive position and supporting long-term growth.”

Burberry, known for its trenches and purses, will shift its focus to targeting high-end spenders and offering “broader everyday luxury” items. It also plans to launch a new website in August.

The fashion house has been on a “long losing streak” with sales and profits, and “things seem to be getting worse,” according to Neil Saunders, retail analyst and managing director at GlobalData Retail.

A combination of softer demand for luxury goods and the brand’s direction is to blame, he said.

“There is a sense that Burberry has been on the back foot and that Jonathan Akeroyd’s revitalization plans have largely failed to stop the decline,” Saunders told CNN. “A course correction has been needed for some time, and Burberry is hoping a new CEO can deliver this.”