Action unlikely following Under Armour accounts probe
20/11/2019
According to an article in the Wall Street Journal, the company took part in some ill-advised sales practices but did nothing to prompt action by the SEC.
It said Under Armour had rushed products into retail stores in an attempt to boost quarterly sales figures, resulting in its having to offer unnecessary discounts that affected the bottom line. The newspaper quoted a professor at Harvard Business School, who said there was nothing of concern to the SEC in urging customers to accept stock early to help meet quarterly targets as long as the numbers were accurate.
However, the same academic pointed out that bringing sales forward in this way was less than ideal because, in time, it would catch up with any company doing it.
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