SEC sends Under Armour Wells notice
27 Jul 2020
Under Armour has received a possible enforcement action from the SEC (Securities and Exchange Commission.). The notice in question is a Wells notice inquiring about the accounting treatment of Q3 and Q4 sales from 2016.
Last week, on July 22, Under Armour's former CEO and current executive chairman, Kevin Plank, and their current CFO, David Bergman, received Wells notices related to a former probe by the SEC.
Although a Wells notice isn't a notice that you've broken the law, it does mean the SEC is considering taking action against the company for violations. Under Armour maintains they have committed no wrongdoing and will work to resolve this matter.
In November, Under Armour confirmed that both SEC and the Justice Department were looking into the company for their accounting practices. Under Armour has been dealing with these issues since 2017 when they began handing over documentation to the SEC and Justice Department regarding their financial practices.
This year, Under Armour took a major hit thanks to the coronavirus pandemic, as did the majority of apparel retailers. The company's sales are already down 50 percent. They are set to report quarterly earnings this Friday. The hope is that the recently reopened stores across the globe have helped their sales turnaround.
photo: via Under Armour Newsroom