What's A 'Wells Notice' — And Why Should Under Armour Investors Care?
What's A 'Wells Notice' — And Why Should Under Armour Investors Care?
Shares of Under Armour Inc (NYSE: UAA) reversed their early morning losses Monday despite being on the receiving end of a warning from U.S. regulators commonly referred to as a Wells notice.
的股份 在盔甲公司 (紐約證券交易所:UAA）儘管收到美國監管機構通常稱為 Wells 通知的警告結束，但週一還是逆轉了他們的清晨損失。
What Happened: Under Armour's ex-CEO and current executive chairman Kevin Plank and CFO David Bergman both received a Wells notice from the Securities and Exchange Commission, the company said in a regulatory filing.
發生了什麼事： Under Armour 的前首席執行官兼現任執行主席凱文·普朗克（Kevin Plan）和 CFO 大衛·伯格曼（David Bergman）都收到了來自證券交易委員會的韋爾斯通知，該公司在監管備案中表示
The SEC investigation relates to how Under Armour handled the accounting treatment of sales from the third quarter of 2015 through the end of 2016.
美國證券交易委員會的調查涉及自 2015 年第三季至 2016 年底之間如何處理銷售的會計處理。
The company is accused of channel stuffing, meaning shipping more items to retailers than they are likely able to sell.
該公司被指控通道填充，這意味著向零售商運送的商品數量超過了他們可能銷售的商品。
The rationale behind such a move would be to try and pull sales from outer quarters into earlier periods.
這種舉動背後的基本原理是嘗試將銷售從外部季度拉到較早的時期。
A Wells notice indicates the SEC is exploring some form of an enforcement action. However, the notice in no way indicates the agency has concluded there was any wrongdoing.
Wells 通知表明證券交易委員會正在探索某種形式的執法行動。但是，該通知絕不表明該機構已經得出結論，存在任何不當行為。
"The Wells notices informed the company and the Executives that the SEC staff has made a preliminary determination to recommend that the SEC file an enforcement action against the company and each of the executives that would allege certain violations of the federal securities laws," according to Under Armour.
根據 Under Armour 表示：「Wells 通知公司和高管們，SEC 的工作人員已作出初步裁定，建議美國證券交易委員會對該公司以及每個高管提出執法行動，這些高管將聲稱違反聯邦證券法。」
Why It's Important: It is "always suboptimal" to be on the receiving end of a Wells notice, CNBC's Jim Cramer said on "Squawk on the Street."
為什麼它很重要： CNBC 的吉姆·克萊默（Jim Cramer）在《街上的 Sawk》上說，在韋爾斯通知的接收端是「總是不理想的」。
In Under Armour's case, revenue recognition is not the issue and the company won't be restating previous earning reports, Cramer said.
克萊默說，在 Under Armour 的情況下，收入認可不是問題，該公司也不會重新開始以前的收入報告。
The company doesn't need to commit accounting wrongoing to hurt itself, as management did that on its own through a poor product line, the CNBC host said.
CNBC 主持人說，該公司不需要犯會計錯誤來傷害自己，因為管理層通過糟糕的產品線自行完成了這一點。
"They are in a very competitive category," Cramer said. "They kind of missed being Lululemon Athletica Inc (NASDAQ: LULU) and they couldn't take on Nike Inc (NYSE: NKE).
What's Next: The SEC is unlikely to harshly rule against Under Armour to the point where Plank will be forced to leave the company, Cramer said.
下一步是什麼： 克拉默說，美國證券交易委員會不太可能嚴厲地統治下裝甲，以至於普朗克將被迫離開公司。
Class A Under Armour shares were trading 1.51% higher at $11.08 at last check Monday.
A 類裝甲類股票在上次檢查週一上漲 1.51%，報 11.08 美元。
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Benzinga file photo by Dustin Blitchok.
本辛加文件照片由達斯汀·布利喬克。
譯文內容由第三人軟體翻譯。