Under Armour shares sank by the most in two years Monday on concerns about a federal investigation into the firm’s accounting practices. The athletic gear maker said it’s been cooperating with the U.S. Securities and Exchange Commission and the U.S. Department of Justice on their investigations for two years. The company said it firmly believes its accounting practices and disclosures were appropriate.
The probe, first reported by The Wall Street Journal, is seeking information that would reveal whether the sports gear maker shifted sales from one quarter to another to make its financial standing appear healthier. That overshadowed an otherwise strong earnings report for the company. Under Armour on Monday reported better than expected profit and revenue for its most recent quarter. Last year Under Armour said that it was cutting about 400 jobs as part of its restructuring efforts