Sportswear company faces two US accounting probes
Under Armour sponsors Anthony Joshua
US sportswear firm Under Armour
has confirmed its accounts are being investigated by US federal authorities.
It is co-operating with probes from the US Securities and Exchange Commission and the US Department of Justice.
A Wall Street Journal
report said authorities were looking into whether Under Armour had shifted sales from quarter to quarter to appear healthier.
But Under Armour
has said its “accounting practices and disclosures were appropriate”.
The firm, which supplies kits to Premier League club Southampton and the Wales rugby team, says it has been assisting the authorities since July 2017.
News of the probe
was the latest bad news for the company, which has been struggling with stalling growth.
Shares in the company opened about 16% lower.
In October, the Baltimore, Maryland-based company
said founder and long-serving chief executive Kevin Plank would step down from the role next year.
He is handing the reins to operations head Patrik Frisk, as the firm looks to compete with long-established rivals Nike and Adidas in the US.
BBC News
https://www.bbc.com/news/business-50290098
Under Armour short-sellers made $130 million in a single day on the company’s new accounting probe ― and it erased their losses for the year (UAA) | Markets Insider