elf beauty (NYSE:ELF) refuted allegations made by short-seller Muddy Waters "without merit" in a Thursday statement Under Carson Block's direction, Muddy Waters claimed that the corporation overstated revenues by as much as $190 million over the past three years and falsified inventory counts to mask declining sales.
Made public on Wednesday at a London conference, the claims caused Elf's shares to fall sharply by 16%, then recover to close 2.2% lower at $119. Notwithstanding this setback, Elf shares are still strong; their value has almost doubled since 2023, and late last year they hit a record high.
Denying the assertions, Elf claimed, "Muddy Waters's report is a deliberate attempt by a known short-seller to manipulate Elf Beauty's share price for personal benefit at the expense of other shareholders." Raising its annual sales and profit projections earlier this month, Elf distinguished itself in a demanding cosmetics market. Two corporations, Estee Lauder and L'Oreal, have battled declining demand, therefore highlighting Elf's achievement.
The company also addressed import data disparities, claiming that since February 2024 it has registered for secrecy with U.S. customs and border protection, therefore hiding much of its import activity from public view.