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  "documentTitle": "e.l.f. Beauty, Inc. (ELF)",
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  "authorName": "Muddy Waters Research",
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  "presentationDate": "2024-11-20 00:00:00",
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  "notes": "The slide outlines a specific fraud allegation regarding inventory accounting and revenue recognition.",
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      "text": "ELF's claim it changed sourcing practices strikes us as categorically false.",
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      "text": "revenue: $135 million",
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      "text": "ELF's claim it changed sourcing practices strikes us as categorically false. From speaking with a former China-side manager and three of ELF's largest suppliers, we understand that ELF's longstanding general practice was to take title to goods on the China side.",
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      "kind": "paragraph",
      "text": "Muddy Waters is short e.l.f. Beauty, Inc. (ELF) because we believe it has materially overstated revenue over the past three quarters – possibly by ~$135 million to ~$190 million.",
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      "text": "Understanding our revenue inflation thesis requires first looking at ELF's inventory accounts and data that track its imports. In Q2 FY24, as ELF's reported inventory was growing, ELF announced that a recent change to its sourcing practices was responsible for the sudden appearance of an additional $36.9 million of inventory.",
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      "text": "e.l.f. Seems to Sell Product it Does Not Have",
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