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Under Armor is being investigated for its accounting practices by the US federal government



  • Sportswear brand Under Armor announced that it has been investigated by the US Securities and Exchange Commission (SEC) and DOJ since July 2017.
  • In a statement, the company stated that it "cooperated" with the probes, stressing that it "firmly believes that its accounting practices and disclosures are appropriate."
  • Sources told the Wall Street Journal that federal agencies are considering whether the sportswear brand's sales shifted from quarter to quarter look healthier.
  • The company has had problems in recent years, including a recent $ 1
    .3 billion decline in sales and a surplus of unsold goods.
  • Learn more at BusinessInsider.com The Exchange Commission ( SEC) and the US Department of Justice (DOJ) have been investigating their accounting practices since July 2017.

    An Under Armor spokesman said in a statement to Business Insiders that they "cooperate" with the probes and are holding back on accounting information: [19659006] "Under Armor cooperates with the US Securities and Exchange Commission and the US Department of Justice. In July 2017, the company began answering requests for documents and information that relate primarily to its accounting practices and related disclosures. and the company is firmly convinced that its accounting practices and disclosures were appropriate. "

    The spokesman did not expand on what exactly the investigators are investigating in relation to the company's accounting practices.

    Persons familiar with the matter told the Wall Street Journal that federal agencies are considering whether the sportswear brand" will increase sales by quarter. "

    A source told The Journal that investigators polled people at the company's headquarters in Baltimore last week, another source said the DOJ is conducting a criminal investigation in collaboration with the civilian Investigators run the SEC.

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

    Business Insider has previously reported on the ups and downs of the company in its 20-year history.

    In July earnings The company has missed the sales forecasts and for 2019 a decline in sales in North america expected.

    The company posted a $ 1.3 billion surplus in 2018 scandal, in which executives go to strip clubs and increase spending on the company's cents.

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

    Kevin Plank, CEO and founder of the company, resigned last month, will be replaced by Patrik Frisk, the company's former Chief Operating Officer, effective January 1.

                      


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