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  "documentTitle": "e.l.f. Beauty, Inc. (ELF)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Muddy Waters Research",
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  "presentationDate": "2024-11-20 00:00:00",
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      "kind": "callout",
      "text": "We believe that ELF was having problems moving inventory and concocted an excuse for the inventory blowing out by claiming that a change in sourcing practices resulted in most of the reported inventory QoQ increase.",
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      "text": "inventory growth: 50.2%",
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      "text": "Q2 FY24 seems to be a turning point. We believe that ELF was having problems moving inventory and concocted an excuse for the inventory blowing out by claiming that a change in sourcing practices resulted in most of the reported inventory QoQ increase. As we show shortly, the following statement is highly likely false (emphasis added):",
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      "text": "In Q2 FY24, ELF's reported inventory grew 50.2% QoQ, or $49.2 million. The prior quarter (Q1 FY24) saw ELF's imports grow QoQ 38.2%, and they stayed essentially flat (-2.1%) in Q2 FY24.",
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      "kind": "quote",
      "text": "\"In addition approximately $37 million of the increase is the result of taking ownership of inventory from China when it ships versus when it enters our distribution center here in the US.\" - Many Fields, ELF Q2 FY24 Earnings Call Nov. 1, 2023",
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      "text": "\"In addition approximately $37 million of the increase is the result of taking ownership of inventory from China when it ships versus when it enters our distribution center here in the US.\" — Many Fields, ELF Q2 FY24 Earnings Call Nov. 1, 2023",
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      "kind": "title",
      "text": "ELF's Reported Inventory First Blew Out in Q2 FY24, Leading to a Likely False Material Statement",
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