e.l.f. Beauty issued a statement on November 21, 2024, categorically refuting the allegations made by short-seller Muddy Waters Research. The company stated that Muddy Waters' claims about overstated revenue and inflated inventory numbers were 'without merit'.
The company asserted that Muddy Waters' report relied on incomplete data, flawed assumptions, omitted critical context, and presented speculation as fact. e.l.f. Beauty highlighted that it filed a request for confidentiality with U.S. Customs and Border Protection in early 2024, meaning public import data after February 6, 2024, does not include a substantial majority of its actual U.S. imports.
e.l.f. Beauty expressed full confidence in its financial statements and rigorous inventory control procedures. The company emphasized its 23rd consecutive quarter of net sales growth and market share gains as evidence of its strong momentum and business model.
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