Ralph Lauren's stock experienced a significant pre-market plunge of 8.37% on Thursday, following the release of its third-quarter fiscal 2026 results.

The luxury retailer reported strong quarterly performance with adjusted earnings per share of $6.22, surpassing the Ibes estimate of $5.81. Revenue reached $2.41 billion, a 12% increase that also beat Wall Street expectations of $2.31 billion. The company attributed these results to resilient demand from affluent shoppers during the holiday season, strong full-price sales, and effective inventory management.

Despite the positive quarterly results, investors reacted negatively to the company's forward guidance. For the fourth quarter, Ralph Lauren expects revenues to grow only about mid-single digits on a constant currency basis. This outlook appears to have disappointed the market, which may have anticipated more robust growth following the strong third-quarter performance, leading to the sharp pre-market decline.