The Securities and Exchange Commission has told Under Armour Inc.'s founder and chief financial officer that they will probably face enforcement action over the company’s practice of pulling sales from the next quarter into the current period—a type of earnings management that’s not uncommon and not necessarily illegal.
The company said in a regulatory filing that the SEC inquiry is focused on what the athletic apparel company disclosed to shareholders about the practice, not how it accounted for the revenue linked to those sales.
What are pull-forward sales?
A company convinces a customer to place an order sooner than they ...
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