E.l.f. Beauty Fires Back At Muddy Waters Over Revenue Inflation Claims

E.l.f. Beauty, Inc. (NYSE:ELF) shares are trading relatively flat on Thursday after the company issued a statement in response to a report from Muddy Waters Research.

Short seller Muddy Waters released a report Wednesday alleging that E.L.F. has overstated its revenue over the last three quarters by approximately $135 million to $190 million. Muddy Waters Research founder Carson Block revealed a new short position in E.l.f. Beauty at the Sohn Conference on Wednesday.

"We believe that in Q2 FY24, ELF management realized its growth narrative was in trouble as its inventory built. It appears that ELF then began reporting inflated revenue and profits," the short seller ...

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