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Muddy Waters’ Carson Block Says He’s Short Elf Beauty Shares (2)

Nov. 21, 2024, 10:22 AM UTC
Nishant Kumar
Nishant Kumar
Bloomberg News
Leonard Kehnscherper
Leonard Kehnscherper
Bloomberg News
Jan-Patrick Barnert
Jan-Patrick Barnert
Bloomberg News

Short seller Carson Block said he’s shorting the shares of cosmetics brand Elf Beauty Inc.

Speaking at the Sohn conference in London on Wednesday, the chief executive officer of Muddy Waters Capital said he is shorting the stock because he has concerns linked to the Oakland, California-based firm’s revenue.

A representative for the beauty company didn’t respond to a request for comment.

WATCH: “Over the past three quarters, we think that they’ve overstated probably somewhere from $130 million to $180 million of revenue,” Block says. Source: Bloomberg

Block said he suspects Elf Beauty has overstated revenue in recent quarters and that a build up in the beauty company’s inventory was due to lackluster sales. The company has previously said the increase ...





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