Under Armor is subject to federal investigations by the Justice Department and Securities and Exchange Commission on accounting practices, the company confirmed Sunday.
Under Armor began responding in July 2017 to requests for documents and information related to accounting practices and related disclosures.
Under Armor cooperates with both investigations and believes its accounting practices and disclosures were appropriate, a company spokesman said.
The Department of Justice is conducting a criminal investigation and is coordinating with civilian investigators at the SEC, according to The Wall Street Journal, which first reported the story.
Let our news meet your inbox. The news and stories that mattered, delivered mornings everyday.
The SEC declined to comment. The Ministry of Justice did not immediately respond to requests for comment.
Under Armor has fought on his home field as recently as in the face of fierce competition from Nike, Adidas and Lululemon. Sales in North America fell 2% in 201
Analysts say that retailers 'performance-focused equipment', such as sweat-proof shirts, do not resonate with so many buyers. Under Armor has also faced turmoil in its leading ranks.
The company went through three CFOs in the period between 2016-2017 and is currently in the middle of a change of management.
CEO and Founder Kevin Plank plans to step down from the top job on January 1, and is replaced by COO Patrik Frisk. Plank plans to continue in the company as CEO and brand manager.
Plank said the change was part of the company's success planning.
There has also been public controversy about Under Armour's work culture. Employees reportedly charged visits to strip clubs on their company cards to win athletes. Under Armor ended the exercise and Plank promised to build a "diverse" and "inclusive" environment at the company in the wake of the controversy. The company's shares closed 2.37% at $ 21.41 on Friday.
Under Armour's shares are down nearly 11% in the last 12 months.