The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
The sportswear company agreed to pay $9 million to settle a Securities and Exchange Commission investigation into its accounting practices. The SEC charged Under Armour with disclosure failures, more specifically with misleading investors about its revenue and sales numbers to make them appear higher than they were.
It was alleged that Under Armour did this through the use of “pull forwards,” which saw the revenue from orders that would be shipped in future quarters reflected in a current quarter. The SEC’s charges claim that Under Armour did not fully disclose the practice to investors, and that “using these undisclosed pull forwards, Under Armour was able to meet analysts’ revenue estimates.”
In the settlement, which resolves the charges, Under Armour did not confirm or deny the SEC’s charges against the company, but agreed to cease and desist from engaging in any further violations.
Fast-growing start-ups like Hettas, Saysh and Moolah Kicks created sneakers designed specifically for active women. The sportswear giants are watching closely.
The companies agreed to cap credit-card swipe fees in one of the most significant antitrust settlements ever, following a legal fight that spanned almost two decades.
In an era of austerity on Wall Street, apparel businesses are more likely to be valued on their profits rather than sales, which usually means lower payouts for founders and investors. That is, if they can find a buyer in the first place.
The fast fashion giant occupies a shrinking middle ground between Shein and Zara. New CEO Daniel Ervér can lay out the path forward when the company reports quarterly results this week.