Under Armour to Pay $9 Million to Settle SEC Revenue Probe
- Under Armour mislead investors by pulling forward sales
- Company settles without admitting or denying SEC’s allegations
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Under Armour Inc. will pay a $9 million fine after a U.S. regulator said the sports apparel company booked revenues earlier than it should have because it was at risk of missing analyst estimates.
Starting in the third quarter of 2015, Under Armour pulled forward $408 million in existing orders that customers had requested be shipped later on, the Securities and Exchange Commission said in a Monday statement. Baltimore-based Under Armour attributed the growth to other factors without disclosing to investors that its actions raised significant questions as to whether the company could meet analysts’ future revenue estimates.