Ralph Lauren's stock plummeted 9.44% during intraday trading on Thursday, extending significant pre-market losses.
The sharp decline followed the company's release of its third-quarter fiscal 2026 results, which showed strong performance but were overshadowed by cautious forward-looking statements. Ralph Lauren reported adjusted earnings per share of $6.22, surpassing the Wall Street estimate of $5.81, and revenue of $2.41 billion, a 12% increase that also beat expectations.
However, investor sentiment turned negative due to the company's outlook. For the critical fourth quarter, Ralph Lauren expects revenues to grow only about mid-single digits on a constant currency basis. This guidance appears to have disappointed the market, which may have anticipated more robust growth following the strong holiday quarter. Additionally, the company's CFO expressed caution regarding the North American operating environment during a conference call, citing wholesale channel consolidation.