Elf Beauty rejects the allegations of fraud against Muddy Waters. $ELF (-0.44%)
The Oakland-based company rejected the claims as "unfounded".
The cosmetics company also clarified that much of its import data has been confidential since February 2024.
Despite the controversy, Elf Beauty remains a prominent brand in a demanding beauty market.
Elf responds confidently
In its statement on Thursday, Elf Beauty firmly rejected the allegations and emphasized its commitment to transparency and shareholder value.
"The recent report by Muddy Waters is an attempt by a known short seller to negatively impact Elf Beauty's share price for his benefit and at the expense of all other shareholders," the company said.
The cosmetics company also clarified that due to a request filed with US Customs and Border Protection, much of its import data has been confidential since February 2024.
"The publicly available import data does not cover a large portion of our actual US imports," the statement continued, indirectly addressing allegations of false inventory claims.
ELF: strong financial performance
Elf Beauty is characterized by its financial stability in a beauty sector that is struggling with declining demand.
Should you buy ELF shares?
Despite the market turmoil, Elf Beauty's fundamentals remain strong and are supported by robust sales growth and a growing market share.
Elf Beauty has become a leading player in the mass cosmetics market and has experienced significant growth in recent years.
