Editor's note: A prior version of this article incorrectly stated the analyst estimate for third quarter revenue. The article has been corrected.

What: Shares of apparel maker Ralph Lauren (RL 3.77%) plunged today, down by 21% as of 2:45 p.m. ET after the company reported earnings results and issued disappointing outlook.

So what: Revenue in the third quarter came in at $1.9 billion on a constant-currency basis, which translated into net income of $193 million, or $2.27 per share. Analysts were expecting sales to be $2.03 billion, although Ralph Lauren did beat the $2.15 per share consensus estimate for the bottom line. Outlook for the coming year left a lot to be desired, though.

Now what: Ralph Lauren is adjusting its guidance for 2016 and now expects revenue to be up 1% on a constant-currency basis and down 3% on a reported basis, reflecting foreign exchange headwinds presented by the strengthening U.S. dollar. The company's prior forecast had expected sales to be up 3% to 5% on a constant currency basis. Operating margins are predicted to fall by 290 basis points to 320 basis points, similarly worse than the prior expectation. CEO Stefan Larsson said he will conduct a review of the company to find new growth opportunities.