US sportswear giant Under Armour was investigated for accounting behavior
Beijing time on the 4th news, the US sportswear giant Under Armour (18.91, 0.41, 2.22%) confirmed on Sunday that it was being investigated by the US Department of Justice and the US Securities and Exchange Commission (SEC) for improper accounting.
A spokesperson for the company said that Under Armour began responding in July 2017 to requests for documents and information related to its accounting practices and related disclosures. The company is working with both surveys and believes that its accounting practices and disclosures are appropriate.
It is reported that the US Department of Justice is conducting a criminal investigation of the company and coordinating with the SEC's civil investigators.
Due to fierce competition from rivals such as Nike (89.18, -0.37, -0.41%), Adidas and Lululemon, Under Armour's US business has recently performed poorly. In 2018, the company's sales in North America fell 2% to $3.7 billion.
In addition, the company's management is also facing turmoil. Between 2016 and 2017, the company replaced three CFOs and is currently in the midst of management transformation.
Kevin Plank, founder and CEO of the company, announced last month that he plans to step down on January 1 next year, and his position will be replaced by current chief operating officer Patrik Frisk. Planck will continue to serve as chairman and brand director of the company.