A new report unveils more Under Armour accounting shenanigans as the company faces a federal investigation | Markets Insider

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A new report unveils more Under Armour accounting shenanigans as the company faces a federal investigation

The sports apparel company reportedly pushed retailers to accept its products early and diverted inventory bound for its own stores to off-price chains like TJX Companies during the last days of a quarter, the WSJ reported.

The practice allowed Under Armour to record the goods as revenue as opposed to wait for them to sell at its retail locations, according to the WSJ. The tactic and others were used to continue a 26-quarter streak of 20% sales growth that ended in late 2016, the report added. to employees Friday addressing the WSJ's report.

"Given recent events that have entered the realm of public opinion without full context, it is disappointing to have our integrity and reputation called into question," Plank wrote in the email, according to a copy obtained byThe news comes less than two weeks after the company announced its accounting practices are under investigation. According to the WSJ, the company's results toward the end of 2016 are being reviewed as part of the probe.

 

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