What: Shares of Tuesday Morning Corporation (NASDAQ:TUES) plummeted 18.75% Tuesday after the off-price retailer unexpectedly announced Michael Rouleau is retiring as the company's CEO and as a member of its board of directors, effectively immediately.

So what: Tuesday Morning didn't appoint an interim CEO, but did create a new "Office of the Chairman," led by Board Chairman Steven Becker, "to support oversight of the Company's strategic initiatives until a new CEO is appointed." Tuesday Morning also added a new lead independent director role to be held by board member Terry Burman. In addition, to aid with the transition, Rouleau will serve "in a consultative capacity" through March 31, 2016. Tuesday Morning has also secured retail executive search firm Herbert Mines Associates to evaluate permanent CEO candidates in the meantime.

Now what: That's little consolation for Tuesday Morning investors, who reacted similarly when the company's CFO resigned in July, and have endured a 75% year-to-date decline. That includes a massive 36% single-day drop last month after the company reported drastically weaker-than-expected quarterly results. To its credit, however, at least one analyst was willing to go out on a limb the following week to argue Tuesday Morning's turnaround appears to remain intact for investors with a long-term view.

Rouleau, for his part, echoed that sentiment by stating, "With Tuesday Morning's rebuilding program well under way, now is the right time to transition to new leadership. ... I am proud of what the team has accomplished over the last couple of years and believe there is still so much opportunity for Tuesday Morning."

In the end, though, this latest -- and arguably most significant -- executive departure doesn't exactly seem like a stirring vote of confidence. Until the company shows more tangible proof its turnaround is taking hold, I'm content watching Tuesday Morning stock from the sidelines.

Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.