Kevin Plank, CEO of Under Armour.
Adam Jeffery | CNBC
Under Armour is set to report third-quarter earnings before the market open on Monday.
Here’s what analysts are expecting, based on Refinitiv estimates:
- Earnings per share: 18 cents expected
- Revenue: $1.41 billion expected
Over the weekend, The Wall Street Journal reported that Under Armour was facing a federal criminal investigation over accounting practices allegedly used to make its finances look healthier.
A spokesperson for the company told CNBC in an email: “Under Armour is cooperating with the U.S. Securities and Exchange Commission and the U.S. Department of Justice investigations. The company began responding in July 2017 to requests for documents and information relating primarily to its accounting practices and related disclosures, and the company firmly believes that its accounting practices and disclosures were appropriate.”
Word of the federal probe comes after CEO Kevin Plank, in a surprise move, announced he will step aside from the chief executive role on Jan. 1, to be succeeded by COO Patrik Frisk. Plank is expected to transition to executive chairman and brand chief.
The athletic apparel and sneaker maker has been struggling to grow sales on its home turf, in a crowded market with Nike, Adidas, Lululemon, and others. Ahead of Monday’s earnings report, it was still calling for sales to decline slightly in North America in 2019. Last quarter, North American sales dropped 3%.
Under Armour shares as of Friday’s market close are up about 19.6%. The stock, which once hovered around $50, closed Friday at $21.14. The company is valued at roughly $9.5 billion. Nike shares are up about 20% this year, while Lululemon shares have surged 65%.
This is a developing story. Please check back for updates.
