American fashion company Under Armor has accepted a fine of $ 9 million to enforce the decision of the US Securities and Exchange Commission on ambiguity about revenue growth.
|According to the US Securities and Exchange Commission, the use of tactics to boost sales soared to push Under Armor into a state of unstable development and chasing quarterly profit targets. Photo: AFP|
The US Securities and Exchange Commission (SEC) said on May 3 that Under Armor did not inform investors about the sports fashion brand implementing its tactics to stimulate sales to push the value of the orders. in the second half of 2015 to USD 408 million, while the business of high-end fashion products for cold weather declined due to relatively warm winter weather that year.
The US Securities and Exchange Commission added that Under Armor did not admit but also did not deny the agency’s ruling.
“The above penalty relates to the fashion company obscuring information about its sales stimulus strategy, which does not imply allegations of the US Securities and Exchange Commission that the fashion company does not comply. general accounting principles “, representative Under Amour stated in a recent announcement.
For six consecutive quarters since the third quarter of 2015, the US Securities and Exchange Commission determined that Under Armor had misled investors about the factors that led to its revenue growth, and that it was not. disclosing to investors real information about the impact of sales stimulation tactics on revenue growth.
This committee also stated that the use of techniques to stimulate sales soared to push Under Armor into a state of unstable development and chase quarterly profit targets.
According to the US Securities and Exchange Commission, Under Armor has agreed to stop using the move to boost sales to achieve its goal, a violation of anti-fraud regulations in the US.
“When public companies describe their financial results, they must not falsify information that is very important to investors,” said Kurt Gottschall, Chief of Office of Securities and Exchange Commission. US deals in the city of Denver recommended.
“By using sales-stimulating tricks for several consecutive quarters to hit sales targets and manipulate revenue growth from other factors, Under Armor has created a false picture of growth drivers. Chief Financial Officer and conceal uncertainty in their business operations, “commented Mr. Kurt Gottschall.