The 20-year-old cosmetics and skin care company e.l.f. Beauty, Inc., has reported continual growth for 23 consecutive quarters—an astonishing growth story. But one prominent short-seller thinks the story is too good to be true. According to Carson Block, founder of Muddy Waters, the makeup brand that won over a generation of young women has been inflating its revenue.
In a new report, Block said that over the past three quarters, e.l.f. has “materially overstated revenue” by about $135 million to approximately $190 million.
