Under Armour (UAA) reported another quarter of depressing revenue growth and improved profitability. The company that could once do no wrong in athletic wear is now on the outside looking in. Nike (NKE), Lululemon (LULU), and others have been reporting stellar revenue growth with products people want while Under Armour keeps its finger on the reset button.

In addition to its lackluster sales, the company is also dealing with a federal investigation into past accounting practices. The investigation, which involves both the Securities and Exchange Commission (SEC) and the Federal Bureau of Investigation (FBI), has been ongoing for more than two years.

Under Armour says it has been cooperating with investigators. If we assume the worst, that Under Armour did violate accounting rules, it's probably also safe to assume the company stopped doing this once investigators got involved. It remains to be seen how this plays out. But I'm assuming we can trust today's numbers even if the company is required to restate past numbers, assuming it is confirmed that violations by the company did occur.

READ FULL ARTICLE HERE