Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Under Armour to pay $9 million to settle SEC charges

Stock MarketsMay 03, 2021 05:35PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Customers exit an Under Armour store in New York

By Katanga Johnson

WASHINGTON (Reuters) -U.S. sports apparel maker Under Armour Inc (NYSE:UAA) has agreed to pay $9 million to settle Securities and Exchange Commission (SEC) charges that it misled investors about its revenue growth, the agency said on Monday.

The SEC found that Under Armour (NYSE:UA) failed to disclose to investors that it employed a sales tactic to accelerate or "pull forward" a total of $408 million in existing orders in the second half of 2015 after a warm winter began to hurt sales of the company's higher-priced cold weather apparel that customers had requested be shipped in future quarters.

Maryland-based Under Armour did not admit to or deny the SEC's charges, the regulator said in its order.

"This settlement relates to the company's disclosures and does not include any allegations from the SEC that sales during these periods did not comply with generally accepted accounting principles," Under Amour said in a statement.

For six consecutive quarters beginning in the third quarter of 2015, the SEC found that Under Armour misleadingly attributed its revenue growth to various factors without disclosing to investors material information about the impacts of its pull forward practices. It also found that the company's use of pull forwards raised significant uncertainty as to whether it would meet its revenue guidance in future quarters.

The company has agreed to cease and desist the practice, which is a violation of U.S. antifraud provisions, the SEC said.

"When public companies describe how they achieved financial results, they must not misstate any information that is material to investors," said Kurt Gottschall, who leads the SEC's Denver regional office.

"By using pull forwards for several consecutive quarters to meet analysts' revenue targets while attributing its revenue growth to other factors, Under Armour created a misleading picture of the drivers of its financial results and concealed known uncertainties concerning its business," he added.

Under Armour to pay $9 million to settle SEC charges
 

Related Articles

Is Allegro MicroSystems Headed for a Breakout?
Is Allegro MicroSystems Headed for a Breakout? By StockNews - Jun 15, 2021

A resistance level has formed in the chart of Allegro Microsystems Inc. (ALGM). If the stock breaks through that level, a break out could soon occur. Read more to learn how to...

3 No-Brainer Stocks to Buy This Month
3 No-Brainer Stocks to Buy This Month By StockNews - Jun 15, 2021

After shaking off its coronavirus pandemic blues, the U.S. witnessed a solid recovery in the first quarter of 2021, fueled by rapid vaccinations, fiscal stimulus, and steady...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email