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Under Armor under federal investigation of accounting practices



  • Sportswear brand Under Armor has announced that the company has been under investigation by the U.S. Securities and Exchange Commission (SEC) and the U.S. Department of Justice (DOJ) since July 2017.
  • In a statement, the company said it "cooperated" with probes and emphasized that it "firmly believes that its accounting practices and disclosures were appropriate."
  • Sources told The Wall Street Journal that federal authorities are considering whether the sportswear brand "shifts sales from quarter to quarter to appear healthier." $ 1
    .3 billion.
  • Visit BusinessInsider.com for more stories.

Under Armor on Sunday said the US Securities and Exchange Commission (SEC) and the U.S. Department of Justice (DOJ) have been investigating accounting practices since July 2017.

An Under Armor spokesman said in a statement to Business Insider that it "cooperated "with probes and was behind its accounting disclosures:

" Under Armor collaborates with the US Securities and Exchange Commission and the US Department of Justice Investigations. The company began responding in July 2017 to requests for documents and information related primarily to accounting practices and related disclosures, and the company is firmly convinced that its accounting practices and disclosures were appropriate. "

The spokesperson did not expand what investigators are specifically looking at regarding the company's accounting practices.

People familiar with the matter told The Wall Street Journal that federal authorities are considering whether the sportswear brand "moved sales from quarter to quarter to appear healthier."

A source told The Journal that investigators interrogated people at the company's headquarters in Baltimore last week. Another source said the DOJ is conducting a criminal investigation in collaboration with the SEC investigators.

The company will report on the third quarter results on Monday.

Business Insider has previously reported on the company's ups and downs over its 20-year history.

In July's earnings results, the company missed revenue forecasts and said it expected a revenue decline in North America throughout 2019.

The company also experienced a surplus of remaining $ 1.3 billion in 2018 and became involved in a scandal involving executives going to strip clubs and exposing outings on the company's penny.

The company announced a long-term growth plan in December 2018, which focused on growing its direct-to-consumer business along with footwear and women's products.

Kevin Plank, the company's CEO and founder, resigned last month and will be replaced by Patrik Frisk, the company's former operations manager from January 1.

                  


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