When Ralph Lauren's new CEO Stefan Larsson presented his turnaround plan on Tuesday, the market didn't know what to make of it. That confusion led Jim Cramer to do his homework and find out if Larsson's new plan really has legs.
"The market's reaction was downright schizophrenic," the "Mad Money" host said.
Initially Wall Street seemed to hate the plan, with the stock plunging $10 to $84 a share at the open. However by the close, the stock had rebounded back to $94.
Ralph Lauren's stock plunged 40 percent in 2015, followed by an additional 16 percent decline in 2016. Cramer boiled the problems of the company down to a decline in the apparel environment, Ralph Lauren's out of date supply chain and slowing revenue growth.