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 (NYSE:RL) 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.

Evan Niu, CFA 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.