Homehttps://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/Businesshttps://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/According to the armor, the United States is examining its accounting practices
According to the armor, the United States is examining its accounting practices
The sportswear maker admitted in a statement Sunday that it is facing studies from the US Department of Justice and the US Securities and Exchange Commission.
"The Company began responding in July 2017 to requests for documents and information related primarily to its accounting practices and related disclosures. The Company firmly believes that its accounting practices and disclosures are appropriate," said a spokesman for Under Armor.  Under Armor founder Kevin Planck stepping down as CEO "data-src-mini =" // cdn.cnn.com/cnnnext/dam/assets/191022070545-kevin-plank-1016-small-169.jpg "data-src-xsmall =" // cdn.cnn.com/cnnnext/dam/assets/1
Shares in Under Armor ( spa 14% on Monday's pre-sale trade to near $ 18.10. The company was worth more than $ 50 a share at the end of 2015. Under the armor, it is scheduled to report its results for the third quarter before the bell opening on Monday.
The Wall Street Journal first reports on investigations into the company's accounting practices. According to the magazine, the Justice Department is conducting a criminal investigation into whether Under Armor is shifting sales from quarter to quarter to make the company look healthier. The US Department of Justice declined comment.
Under Armor announced last month that founder Kevin Planck is stepping down as CEO. He will be replaced by Chief Operating Officer Patrick Frisco on January 1, 2020. Planck will become Executive Chairman and Chief Brand Officer.
The amount of management comes after the company suffered from weaker sales and lost positions in rivals, including Nike  ( NKE ) and Adidas ( ADDDF ) . Smaller brands like Fila and Puma are also booming.
—— Jessica Schneider and Josh Girsky contributed reporting.