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.
When the American sportswear retailer announced the return of its controversial founder as CEO Wednesday, investors were perplexed. BoF unpacks why Plank may be back — and the challenges that lie ahead in his bid to transform its fortunes.
The category’s biggest brands by market capitalisation report results this week, and will need to show they have a plan to fend off fast-growing competition.
By investing in an elevated product and shopping experience, Spanish retailers Inditex and Mango are seeing tremendous growth despite fierce competition from the likes of Temu and a cash-strapped consumer.
The ByteDance-owned app’s e-commerce play has been met with mixed response from users. Still, sales seem to keep ticking up.