Under Armour stock is sweating hard.
Shares of the company known for its innovative sports apparel are plummeting, as investors are nervous about the federal investigation into how it does its accounting.
The stock closed at $15.52, down $3.39 or 17.93%.
The Wall Street Journal first broke the news of the probe on Sunday.
“We have been fully cooperating with these inquiries for nearly two and a half years,” Under Armour CFO David Bergman said during the company’s third-quarter earnings call today. “We firmly believe that our accounting practices and disclosures were appropriate.”
The Securities and Exchange Commission and the U.S. Department of Justice are looking into whether the Baltimore-based business played with its sales numbers.
Last week, Under Armour announced that founder Kevin Plank was stepping down as CEO to be replaced by COO Patrik Frisk on January 1.
The initial idea for the workout wear started in 1995 when Plank, who played football at the University of Maryland, tried to find a way to keep the T-shirt he wore under his uniform light and dry. The sweat-wicking fabric Under Armour created is now worn by world-class athletes as well as the general public.