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Feds Investigate Accounting Practices at Under Armour

Sources say struggling company may have manipulated sales figures
By Newser Editors and Wire Services
Posted Nov 4, 2019 1:54 AM CST
Kevin Plank stepped down as CEO of Under Armour last month.   (AP Photo/Richard Drew, File)
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(Newser) – Under Armour Inc. is being investigated by federal authorities over its accounting practices. The athletic gear company said Sunday that it has been cooperating with the Securities and Exchange Commission and the Department of Justice on their investigations for two years, the AP reports. The company said it firmly believes its accounting practices and disclosures were appropriate. The probe involves whether the retailer shifted sales from quarter to quarter to make results appear stronger, sources tell the Wall Street Journal. Under Armour founder Kevin Plank stepped down as CEO last month. The company has struggled since its explosive sales growth petered out in 2017. Last year it announced job cuts as part of a restructuring effort. Under Armour reports earnings for the third quarter Monday. (Read more Under Armour stories.)

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