Under Armour faces U.S. federal probe over accounting practices: WSJ

Published 04/11/2019 in Business News, Economy & Finance

Under Armour faces U.S. federal probe over accounting practices: WSJ

(Reuters) – Under Armour Inc (UAA.N) is under investigation by U.S. federal law enforcement officials over whether the sportswear maker shifted sales from quarter to quarter to appear financially healthier, the Wall Street Journal reported on Sunday.

The Baltimore-based company confirmed that it is under investigation and is cooperating with the Justice Department and U.S. Securities and Exchange Commission. It also defended its accounting practices and disclosures.

The Journal, citing unnamed sources, said in its report NKE.N) and Adidas AG (ADSGn.DE) in the United States.

The company, which is due to report third-quarter results on Monday, has been restructuring its operations as it struggles to stand out in the United States, its biggest market, where it has been introducing products to shore up market share.

In July, Under Armour cut its full-year revenue forecast and said it expected a slight decline in North America revenue for fiscal 2019 as demand at its stores and online faced pressure from relentless competition from bigger rivals.

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