Channel stuffing and, more generally, pulling revenue forward is getting mass attention as athletic products provider Under Armour is under SEC investigation. The WSJ has a good report on it Inside Under Armour’s Sales Scramble: ‘Pulling Forward Every Quarter’ - WSJ A central debate there is whether or not what Under Armour did is just risky or illegal business.
Whichever this turns out to be, there is no doubt that this practice helps create a positive short term feeling, as the WSJ notes:
****** ********** **** ******* ***** ******* helped *** ********** ******* ******* *** growth ******, ***** ********* **** *** important ** **. *****. ** ******* earnings *****, **. ***** ******* ***** the ******, ********* *** ***** ******* of ****.
“*** ********* ******* *** ** ********** accomplishment *** *** ***** *** ********* that ** ******* ********* ** **** others ** *** ********,” **. ***** said ** ***. **, ****.
** ******, **********, *** ***'* **** pulling ******* ***:
***** *** ****** ************* *** *********, according ** ****** ******** **** *** matter, *** ***** ******’* ******* ** the *** ** **** *** *** tenure ** ****** ******* ***** **** Molloy, *** ******** ** ******* **** on *** **** *** *** ******* said ***** ****** **** ***** **%. Under ****** ************* **% **** ***.
**** ****** ******* ** **** ** companies ** **** ** **********. **** does *** **** ** '*****' ** a ***** **** **** ********.
********** ** **** **** *********:
*** **** ****** **** ******** **** to *** * ******* ********* -******** ********** ****** *****
******,******* ******** ** ******* ********.
******** *****, *** ******* ** ********* that ** **** ********** ********** * crash, ***** *** ******** ** ** longer ******** *** ****** ***** ******, leading ** * ******* ***** **** up.
* *** **** ***** ** ** own ********** ***********, *** ***** *** certain ********* ***** ******* ******** *** become *** ****. ***** *****, ***** quarter, ***** ****.