Man, Under Armour’s really going through it. Sales are down, leadership is in flux and, according to Reuters, the sports apparel company is under investigation by federal U.S. law enforcement officials over allegations that they “shifted sales from quarter to quarter to appear financially healthier.”
Per Reuters, the “Baltimore-based company confirmed that it is under investigation and is cooperating with the Justice Department and U.S. Securities and Exchange Commission,” though it also “defended its accounting practices and disclosures.”
The company also stated that it “began responding in July 2017 to requests for documents and information relating primarily to its accounting practices and related disclosures,” but that it “firmly believes that its accounting practices and disclosures were appropriate.”
As was widely reported, longtime CEO Kevin Plank stepped down last month, and the company has been “restructuring” operations in the interim. It’s also slashed revenue forecasts and has started preparing for a “slight decline in North America revenue for fiscal 2019.”
“Federal investigation” is a tough addition to that list, and if there’s any weight to the allegations, UA could be in serious trouble.
You can read more about it at Reuters.