قالب وردپرس درنا توس
Home / Business / Under Armor is the subject of a federal accounting probe, WSJ reports

Under Armor is the subject of a federal accounting probe, WSJ reports



Kevin Plank, Founder and CEO of Under Armor Sportswear, at his Baltimore, Maryland office October 1, 2009.

Bill O & # 39; Leary | The Washington Post | Getty Images

Under Armor is facing a federal criminal investigation into accounting practices allegedly used to make the economy look healthier, The Wall Street Journal reported Sunday, citing people familiar with the case.

The probe involves claims that the company moved sales between quarters, according to The Journal. Investigators questioned people in Baltimore as late as last week.

The Department of Justice is conducting a criminal investigation and is coordinating with civil investigators at the Securities and Exchange Commission, according to The Journal. The investigation has not been made public.

The SEC declined to comment. The Ministry of Justice and Under Armor did not immediately respond to requests for comment.

Under Armor has faced a decline in sales in North America amid fierce competition from Nike, Adidas and Lululemon and unrest among its executive management. The company underwent three CFOs in the period 201

6-2017.

The company is also in the midst of a transition in management. CEO and Founder Kevin Plank plans to resign from the top job on January 1, and will be replaced by COO Patrik Frisk. Plank plans to continue in the company as CEO and brand manager.

There has also been controversy over 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.

Company stock closed 2.37% at $ 21.41 on Friday. Under Armor, the stock is down nearly 11% over the past 12 months.


Source link