By Ben Glickman
E.l.f. Beauty said a short-seller's claims that the company had overstated revenue were false.
The Oakland, Calif., company Thursday said it has rigorous controls around inventory and revenue recognition, and said it was fully confident in its financial statements.
Muddy Waters Research, the short-seller firm of Carson Block, published a report Wednesday alleging the company had inflated its sales results, citing a sharp drop-off in imports in the recent quarters without a commensurate drop in sales.
E.l.f. said Thursday that public data after Feb. 6 don't include a majority of imports, as the company filed a request for confidentiality with U.S. Customs and Border Protection. The company said the report included numerous inaccurate statements and relied on incomplete data and flawed assumptions.
Muddy Waters couldn't be reached immediately for comment. Shares of E.l.f. were up 0.8% at $120 in premarket trading, after closing down 2.2% on Wednesday.
Write to Ben Glickman at ben.glickman@wsj.com
(END) Dow Jones Newswires
November 21, 2024 07:55 ET (12:55 GMT)
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