e.l.f. Beauty issued a statement in response to a report published by Muddy Waters Research on November 20, 2024.
 
The statement reads:
 
“Muddy Waters’ latest report is an attempt by a noted short seller to negatively impact e.l.f. Beauty’s share price for its own benefit and at the expense of all other e.l.f. Beauty shareholders, and Muddy Waters’ allegations are without merit. Muddy Waters has made numerous inaccurate statements about e.l.f. Beauty and our business by relying upon incomplete data and flawed assumptions, omitting critical context, and presenting speculation as fact.
 
In particular, in early 2024, for competitive reasons and as permitted by applicable regulations, we filed a request for confidentiality with U.S. Customs and Border Protection with respect to our customs import data. Therefore, import data available to the public after February 6, 2024, does not include a substantial majority of our actual U.S. imports.
 
Further, Muddy Waters’ assertions do not align with the strong consumption data published by Nielsen and Circana.
 
We have rigorous inventory control procedures, including regular physical and cycle counts across our global distribution network. Similarly, we have rigorous controls and procedures around revenue recognition. We are fully confident in our financial statements.
 
Our recently announced second quarter fiscal 2025 financial results – marking our 23rd consecutive quarter of both net sales growth and market share gains – demonstrate our strong momentum and underscore our confidence in our business model and strategy. e.l.f. Beauty continues to deliver consistent, category leading growth.”

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