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Regulators warn Under Armour over accounting practices

FILE - In this May 3, 2019, file photo a Texas Southern University's softball player's Under Armour cleats touch the third base bag during a NCAA softball game in Houston. Under Armour last week said it would up to $425 million in restructuring charges as it tries to reverse a decline in sales in s latest warning about sales and costs put another dent in its stock price and added to a years-long decline. (AP Photo/Aaron M. Sprecher, File)
FILE - In this May 3, 2019, file photo a Texas Southern University's softball player's Under Armour cleats touch the third base bag during a NCAA softball game in Houston. Under Armour last week said it would up to $425 million in restructuring charges as it tries to reverse a decline in sales in s latest warning about sales and costs put another dent in its stock price and added to a years-long decline. (AP Photo/Aaron M. Sprecher, File) (Copyright 2019 The Associated Press. All rights reserved.)

NEW YORK – Under Armour said Monday that it received a warning from U.S. regulators that the company and two of its executives could be punished over past accounting practices.

The sporting goods company said in a government filing Monday that the warning, known as a “Wells Notice," was sent last week from the U.S. Securities and Exchange Commission. The two executives who received the notice were founder Kevin Plank and Chief Financial Officer David Bergman.

A Wells Notice is a warning that a company or individual could face enforcement action.

The SEC is focusing on the company's accounting practices from the middle of 2015 to the end of 2016, specifically the disclosure of “pull forward” sales, where a sale is executed earlier than planned.

Under Armour said in the filing that the actions of the company and its executives “were appropriate” and that they are responding to the SEC. Under Armour Inc. did not immediately respond to a request for comment Monday morning.

Plank, who founded Under Armour in 1996, stepped down as CEO last year and is the company’s executive chairman and brand chief.

Shares of the Baltimore-based company slipped about 1% Monday morning.