Under Armour sportswear under federal investigation over accounting practices

FILE - In this Monday, Jan. 4, 2016, file photo, an Under Armour chest strap heart rate monitor is displayed in New York. (AP Photo/Mark Lennihan, File)

Under Armour Inc. is being investigated by federal authorities over its accounting practices.

The athletic gear company said Sunday that it has been co-operating with the U.S. Securities and Exchange Commission and the U.S. Department of Justice on their investigations for two years.

READ MORE: Canadian companies avoided up to $11B in taxes in 2014, CRA report says

The company said it firmly believes its accounting practices and disclosures were appropriate.

Under Armour reports earnings for the third quarter Monday.

Click to play video: 'Auditor General says Ontario deficit to be far higher than government claims'
Auditor General says Ontario deficit to be far higher than government claims

The investigation was first reported by The Wall Street Journal, which said the probe involves whether the retailer shifted sales from quarter to quarter to make results appear stronger.

Story continues below advertisement

Under Armour founder Kevin Plank stepped down as CEO last month. The company has struggled since its explosive sales growth petered out in 2017. Last year it announced job cuts as part of a restructuring effort.

Sponsored content