e.l.f. Beauty Issues Statement Refuting Unsubstantiated Short-Seller Report
e.l.f. Beauty (NYSE: ELF) has issued a statement strongly refuting allegations made in a short-seller report by Muddy Waters Research. The company declares the report's claims are without merit and based on incomplete data and flawed assumptions. e.l.f. explains that since early 2024, they filed for confidentiality with U.S. Customs regarding import data, meaning public import data after February 6, 2024, excludes most of their U.S. imports. The company emphasizes its rigorous inventory control and revenue recognition procedures, highlighting their recent Q2 fiscal 2025 results showing their 23rd consecutive quarter of net sales growth and market share gains.
e.l.f. Beauty (NYSE: ELF) ha pubblicato una dichiarazione in cui smentisce fermamente le accuse contenute in un rapporto di un venditore allo scoperto di Muddy Waters Research. L'azienda dichiara che le affermazioni del rapporto sono infondate e basate su dati incompleti e assunzioni errate. e.l.f. spiega che, dall'inizio del 2024, ha fatto richiesta di riservatezza con le Dogane statunitensi riguardo ai dati di importazione, il che significa che i dati pubblici di importazione dopo il 6 febbraio 2024 escludono la maggior parte delle loro importazioni negli Stati Uniti. L'azienda sottolinea il suo rigoroso controllo dell'inventario e le procedure di riconoscimento dei ricavi, evidenziando i risultati recenti del secondo trimestre dell'anno fiscale 2025, che mostrano il ventitreesimo trimestre consecutivo di crescita delle vendite nette e guadagni di quota di mercato.
e.l.f. Beauty (NYSE: ELF) ha emitido una declaración rechazando enérgicamente las acusaciones realizadas en un informe de un vendedor corto por Muddy Waters Research. La compañía declara que las afirmaciones del informe son infundadas y se basan en datos incompletos y suposiciones erróneas. e.l.f. explica que desde principios de 2024 ha solicitado confidencialidad a las Aduanas de EE. UU. respecto a los datos de importación, lo que significa que los datos públicos de importación después del 6 de febrero de 2024 excluyen la mayor parte de sus importaciones a EE. UU. La empresa enfatiza su riguroso control de inventario y los procedimientos de reconocimiento de ingresos, destacando sus recientes resultados del segundo trimestre del año fiscal 2025 que muestran su vigésimo tercer trimestre consecutivo de crecimiento en ventas netas y aumento de cuota de mercado.
e.l.f. Beauty (NYSE: ELF)는 Muddy Waters Research의 공매도 보고서에 대한 주장을 강력히 반박하는 성명을 발표했습니다. 회사는 보고서의 주장이 근거가 없으며 불완전한 데이터와 잘못된 가정에 기반하고 있다고 선언했습니다. e.l.f.는 2024년 초부터 미국 세관에 수입 데이터의 기밀성을 요청했으며, 이는 2024년 2월 6일 이후의 공개 수입 데이터가 대부분의 미국 수입을 포함하지 않음을 의미합니다. 이 회사는 엄격한 재고 관리 및 수익 인식 절차를 강조하며, 최근 발표한 2025 회계연도 2분기 실적에서 연속 23분기 동안의 순매출 성장과 시장 점유율 증가를 보여주었습니다.
e.l.f. Beauty (NYSE: ELF) a publié un communiqué fermement rejetant les allégations formulées dans un rapport d'un vendeur à découvert par Muddy Waters Research. La société déclare que les affirmations du rapport sont sans fondement et reposent sur des données incomplètes et des hypothèses erronées. e.l.f. explique que, depuis début 2024, elle a demandé la confidentialité auprès des douanes américaines concernant les données d'importation, ce qui signifie que les données d'importation publiques après le 6 février 2024 excluent la plupart de ses importations aux États-Unis. L'entreprise souligne ses procédures rigoureuses de contrôle des stocks et de reconnaissance des revenus, mettant en avant ses récents résultats du deuxième trimestre de l'exercice fiscal 2025, montrant son 23ème trimestre consécutif de croissance des ventes nettes et de gains de parts de marché.
e.l.f. Beauty (NYSE: ELF) hat eine Erklärung veröffentlicht, in der sie die im Bericht eines Leerverkäufers von Muddy Waters Research vorgebrachten Anschuldigungen entschieden zurückweist. Das Unternehmen erklärt, dass die Ansprüche des Berichts unbegründet sind und auf unvollständigen Daten und fehlerhaften Annahmen basieren. e.l.f. erläutert, dass sie seit Anfang 2024 bei den US-Zollbehörden Vertraulichkeit hinsichtlich der Importdaten beantragt haben, was bedeutet, dass die öffentlichen Importdaten nach dem 6. Februar 2024 die meisten ihrer US-Importe ausschließen. Das Unternehmen betont seine strengen Verfahren zur Bestandskontrolle und zur Umsatzrealisierung und hebt die kürzlich veröffentlichen Ergebnisse des zweiten Quartals des Geschäftsjahres 2025 hervor, die das 23. aufeinanderfolgende Quartal mit Wachstumszahlen bei den Nettoumsätzen und Marktanteilsgewinnen zeigen.
- 23 consecutive quarters of net sales growth
- Consistent market share gains
- Strong momentum in Q2 fiscal 2025 financial results
- Short-seller attack potentially impacting stock price
- Public scrutiny of company's import data and financial practices
Insights
This short-seller report defense warrants serious attention given e.l.f. Beauty's significant market position. The company's direct rebuttal highlights several key points that strengthen their position: 23 consecutive quarters of sales growth and market share gains, verifiable third-party consumption data from Nielsen and Circana and a legitimate explanation for the customs data discrepancy through their confidentiality filing with U.S. Customs.
The company's inventory control procedures and revenue recognition practices appear robust, with regular physical counts across their distribution network. The market's reaction to short reports typically creates volatility, but e.l.f.'s strong fundamental performance metrics and transparent response suggest resilience. Their consistent category-leading growth and clear explanation of the customs data situation provide substantial counterpoints to the short thesis.
The company's response demonstrates strong legal positioning by specifically addressing the short seller's claims while maintaining regulatory compliance. The confidentiality request with U.S. Customs and Border Protection was filed through proper channels and is legally permissible, explaining the apparent data discrepancy after February 6, 2024. This strategic move to protect competitive information while maintaining transparency with regulators is significant.
The statement carefully balances defending against allegations while avoiding inflammatory language that could trigger securities litigation. By emphasizing their confidence in financial statements and established control procedures, they're creating a strong legal foundation against potential shareholder actions while maintaining credibility with regulators.
Allegations Are Without Merit; Company Is Fully Confident in Financial Statements
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
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.
About e.l.f. Beauty
e.l.f. Beauty (NYSE: ELF) is fueled by a belief that anything is e.l.f.ing possible. e.l.f. is a different kind of company that disrupts norms, shapes culture and connects communities, through positivity, inclusivity and accessibility. The mission is clear: to make the best of beauty accessible to every eye, lip and face. e.l.f. Beauty and its brands, e.l.f. Cosmetics, e.l.f. SKIN, Keys Soulcare, Well People and NATURIUM, are led by purpose, driven by results and elevated by superpowers. e.l.f. Beauty offers e.l.f. clean and vegan products, all double-certified by PETA and Leaping Bunny as cruelty free, and proudly stands as the first beauty company with Fair Trade Certified™ facilities. With a kind heart at the center of e.l.f.’s ethos, the company donates
Learn more at https://www.elfbeauty.com/.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241121824889/en/
Investors:
KC Katten
VP, Corporate Development & Investor Relations
kkatten@elfbeauty.com
Media:
Sam Critchell
VP, Corporate Communications
scritchell@elfbeauty.com
Source: e.l.f. Beauty
FAQ
What allegations did Muddy Waters make against e.l.f. Beauty (ELF)?
Why isn't e.l.f. Beauty's (ELF) import data publicly available after February 6, 2024?
How many consecutive quarters of growth has e.l.f. Beauty (ELF) achieved?
