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Under Armour to pay $9 million to settle charges of revenue misdirection

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Agence France-Presse

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img src="https://sa.kapamilya.com/absnews/abscbnnews/media/2021/reuters/05/04/20210503-under-armour.jpg"/><figcaption>An Under Armour sign is seen outside a store in Chicago, Illinois, US, October 25, 2016. <em>Jim Young, Reuters/File Photo</em></figcaption></figure></div><p>WASHINGTON - American athletic apparel company Under Armour on Monday agreed to pay $9 million to settle charges by US financial regulators that it misled investors about its revenues.</p><p>The Securities and Exchange Commission (SEC) said that for 6 quarters from the third quarter of 2015 through 2016, Under Armour inflated sales to meet analysts&#x27; expectations.</p><p>Faced with missing those revenue targets, the company pulled forward $408 million in orders customers had requested for future quarters, the SEC said in a statement.</p><p>Under Armour, which sponsors American football player Tom Brady, boxer Anthony Joshua and basketball player Stephen Curry, then attributed that revenue growth to &quot;various factors&quot; without telling investors about the &quot;accelerated&quot; orders.</p><p>&quot;By using pull forwards for several consecutive quarters to meet analysts&#x27; 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,&quot; Kurt Gottschall, director of the SEC&#x27;s Denver office, said in a statement.</p><p>Under Armour said the settlement resolves the charges from the American financial regulator and &quot;the company neither admitted nor denied the SEC&#x27;s charges,&quot; it said in a statement.</p><p>Under Armour also agreed to &quot;other non-monetary settlement terms,&quot; without elaborating.</p><p>The company&#x27;s stock was up 0.6 percent after the close.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/03/25/21/nike-faces-social-media-storm-in-china-over-xinjiang-statement">Nike faces social media storm in China over Xinjiang statement</a></li>	<li><a href="https://news.abs-cbn.com/business/03/26/21/nike-adidas-join-brands-feeling-chinese-social-media-heat-over-xinjiang">Nike, Adidas join brands feeling Chinese social media heat over Xinjiang</a></li></ul><div><strong>RELATED VIDEO:</strong></div><figure class="op-interactive"><iframe height="315" src="https://www.youtube.com/embed/Xe4fj7m6Wuc?enablejsapi=1" width="560"></iframe></figure><div class="iwantbar">Watch more in <a href="//www.iwantv.com.ph/">iWantv</a> or <a href="//tfc.tv/">TFC.tv</a></div>

<p>American athletic apparel company Under Armour on Monday agreed to pay $9 million to settle charges by US financial regulators that it misled investors about its revenues.</p>

American athletic apparel company Under Armour on Monday agreed to pay $9 million to settle charges by US financial regulators that it misled investors about its revenues.