The American manufacturer of sports clothing and footwear Under Armor has reached an agreement with the United States Securities Market Commission (SEC) to resolve, by paying a fine of 9 million dollars (7.5 million euros), a research on company accounting.
The SEC had accused Under Armor of misleading investors about its income growth and failing to disclose known uncertainties about its future income prospects.
According to the SEC order, in the second half of 2015, Under Armor’s revenue growth forecasts for the third and fourth quarters of 2015 began to indicate that they were out of line with analysts’ revenue estimates. The car concludes, for example, that the company was not meeting internal sales forecasts for North America, and that the warm winter weather was negatively affecting sales of Under Armor’s higher-priced cold weather apparel. .
The car further concludes that, in response, over six consecutive quarters beginning in the third quarter of 2015, Under Armor accelerated, or “advanced,” a total of $ 408 million in existing orders that customers had requested to ship in quarters. futures. As stated in the order, Under Armor misleadingly attributed its revenue growth during this period to various factors without disclosing material information about the impacts of these practices to investors.
“When listed companies describe how they achieved their financial results, they should not present misinformation that is important to investors,” said Kurt Gottschall, director of the SEC’s Denver regional office.
Through this agreement, the company, which has neither admitted nor denied the SEC charges, all pending claims are resolved before the US regulator, whose staff has confirmed that it does not intend to recommend that action be taken against the president. executive, CFO or any other member of the company’s senior management in connection with this investigation.
Likewise, the company, which had previously announced that it had also been responding to requests for documents and information by the Department of Justice, confirmed that it has not received any request from it since the second quarter of 2020.
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