Suspected Performance Fraud! Andrew Fell More Than 18% On Monday.

As the rapid rise of the star sports brand in the past ten years, Andemar (UnderArmour) has been having bad news recently. At the opening of Monday, Andrew fell sharply, and its share price continued to fall, closing down more than 18%, at $15.44.

It is worth noting that Andemar announced the three quarter earnings in the morning of Monday (November 4th), which shows that net revenue is slightly less than market expectations and lowered annual revenue guidelines. Specifically, Andemar's net revenue in the third quarter was $1 billion 400 million, the market forecast was $1 billion 410 million, earnings per share were 23 cents, and 17 cents a year earlier. The company now expects revenue growth in fiscal year 2019 to grow by 2%, down from the previous 3% to 4% growth forecast.

Along with the weak performance, Andemar also appeared a series of high-level changes. In March of this year, Dave Dombrow, the designer of the hot shoe series, left the company. In July of last year, Adrien Floton Adrienne Lofton left the company. In October, Dave Domburu, chief human resource officer of Andrew Ma, left the company. In December, Ryan Kul (Ryan Kuehl), senior vice president of global sports marketing, and Walker Jones (Walker Jones), senior director of sports marketing, were dismissed from the office in December. Dave

To make matters worse, according to the Wall Street Journal quoted a person familiar with the matter, federal law enforcement officials are investigating Andemar's earnings accounting practices, focusing on whether Andemar exaggerated quarterly sales. Another person said that the Attorney General of the US Department of justice is coordinating with SEC's civil investigator to conduct a criminal investigation into the matter.

In this regard, ADMA also admitted that it is in line with the investigation of the Ministry of justice and SEC and insisted that "since July 2017, the company has begun to respond to requests for documents and information related to its accounting practices and related letters. But the company firmly believes that its accounting practices and letters are appropriate.

However, the alleged fraud in performance and weak revenue growth obviously affected the confidence of the capital market in Andemar, and exacerbated the market's concern about whether Andemar could continue to gain market share from Nike, Adidas and Lulu (lululemon).

Listed in 2005, andmar, a professional and technology company, has had a period of rapid growth. It has created the rising myth of the industry. In 2014, Andrew's revenue amounted to $3 billion, which surpassed that of Adidas. But recently, Andrew has fallen into the mire of declining performance, especially in the North American market. Lulu lemon, a rising star, has become the third largest sport brand in the world through its good sportswear market. It has become the world's top sports brand, and its revenue growth has exceeded 20% in 6 quarters, leading the industry.