Core Viewpoint - E.l.f. Beauty is facing allegations from Muddy Waters regarding the overstatement of its revenue by approximately $135 million to $190 million over the last three quarters, which has led to a significant drop in its stock price [1][2]. Financial Performance - E.l.f. Beauty has achieved a remarkable 38% compound annual growth over the last four years, increasing revenues from $283 million in fiscal 2020 to just over $1 billion in fiscal 2024 [5]. - The company reported a 77% revenue increase in fiscal 2024, while the overall beauty industry grew by 10% to $446 billion [8]. - E.l.f. Beauty expects revenues to reach $1.3 billion in fiscal 2025, with adjusted EBITDA projected between $304 million to $308 million [23]. Market Position and Strategy - E.l.f. Beauty has established a strong market presence, with 84% of net sales last year made through retail partners, including Target, Walmart, and Ulta [20]. - The company is expanding its international presence, with significant growth in the U.K., Germany, and Mexico, and international sales nearly doubling from $61 million to $118 million in the first six months of fiscal 2025 [21][22]. Brand Loyalty and Consumer Engagement - E.l.f. Beauty has cultivated a "sticky" brand quality that resonates with consumers, focusing on product performance rather than stock prices [3][5]. - The company excels in digital marketing and social media engagement, utilizing humor and collaborations to enhance brand visibility and customer loyalty [12][14]. Leadership and Workforce - E.l.f. Beauty operates with a lean workforce of only 475 full-time employees, significantly lower than the typical range for a company of its size, allowing for a focused approach to serving its community [26]. - The leadership team includes experienced professionals from major brands, contributing to the company's innovative and consumer-focused strategies [24][25].

NEWTOWN, Pa., Nov. 25, 2024 /PRNewswire/ -- Edelson Lechtzin LLP is investigating potential violations of the federal securities laws involving e.l.f. Beauty, Inc. ("e.l.f. Beauty") (NYSE: ELF) resulting from allegations of providing potentially misleading business information to the investing public.If you have non-public information that could assist in the e.l.f. Beauty Investigation or if you are an e.l.f. Beauty investor who suffered a loss and would like to learn more, you can provide your information ...

NEW YORK, Nov. 23, 2024 (GLOBE NEWSWIRE) -- WHY: Rosen Law Firm, a global investor rights law firm, announces an investigation of potential securities claims on behalf of shareholders of e.l.f. Beauty, Inc. (NYSE: ELF) resulting from allegations that e.l.f. Beauty may have issued materially misleading business information to the investing public. SO WHAT: If you purchased e.l.f. Beauty securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency f ...

NEW YORK, Nov. 22, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against e.l.f. Beauty, Inc. (“e.l.f. Beauty” or the “Company”) (NYSE: ELF) on behalf of e.l.f. Beauty stockholders. Our investigation concerns whether e.l.f. Beauty has violated the federal securities laws and/or engaged in other unlawful business practices. Click here to participate in the action. On November 20, 2024, Muddy Waters Research issued a ...

LOS ANGELES, Nov. 22, 2024 /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of e.l.f. Beauty, Inc. ("e.l.f. Beauty" or "the Company") (NYSE: ELF) for violations of the securities laws.The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Muddy Waters Research published a report about e.l.f. Beauty, Inc. on Novem ...

ATLANTA, Nov. 21, 2024 (GLOBE NEWSWIRE) -- Holzer & Holzer, LLC is investigating whether e.l.f. Beauty, Inc. (“e.l.f. Beauty” or the “Company”) (NYSE: ELF) complied with federal securities laws. On November 20, 2024, Muddy Watters Research released a report alleging that e.l.f. Beauty “has materially overstated revenue over the past three quarters – possibly by ~$135 million to ~$190 million.” Following this report, the price of the Company’s stock dropped.  If you purchased e.l.f. Beauty stock and suffered ...

Key TakeawaysE.l.f. Beauty called claims that it overstated its revenue meritless and said it "was fully confident in our financial statements."The beauty brand's statements come after the short-seller, Muddy Waters, alleged it had inflated its revenues for three quarters.E.l.f.'s stock prices plunged after Muddy Waters' allegations on Wednesday, but have since recovered. E.l.f. Beauty Inc (ELF) called a short-seller’s report meritless a day after its publisher, Muddy Waters Research, accused the cosmetics ...

SAN DIEGO, Nov. 20, 2024 (GLOBE NEWSWIRE) -- Johnson Fistel, LLP is investigating whether e.l.f. Beauty, Inc. (NYSE: ELF) or any of its executive officers violated securities laws by misrepresenting or failing to timely disclose material information to investors. On November 20, 2024, Muddy Waters Research issued a report regarding e.l.f. Beauty. The report states that “Muddy Waters is short e.l.f. Beauty, Inc. (ELF) because we believe it has materially overstated revenue over the past three quarters – poss ...

e.l.f. Beauty, Inc. (ELF) has experienced notable volatility in its stock performance. Over the past three months, the stock has declined 24.7%, underperforming the Zacks Consumer Staples sector’s drop of 4.5% and the S&P 500's growth of 5%. This downward trend reflects a combination of market-wide headwinds and company-specific challenges, raising questions about its near-term outlook.ELF Three-Month Price Performance vs. Sector & S&P 500Image Source: Zacks Investment ResearchHowever, the stock has rebound ...

Core Viewpoint - E.l.f. Beauty has shown significant growth in sales and market share, leading to an optimistic outlook for the company's future performance [1][6]. Sales Performance - For the fiscal second quarter ending September 30, e.l.f. Beauty's sales increased by 40% year over year to $301.1 million, surpassing the analyst consensus of $286 million [3]. - Adjusted earnings per share (EPS) decreased from $0.82 to $0.77 but exceeded the analyst estimate of $0.43 [3]. - Adjusted EBITDA rose by 9% to $146.8 million [3]. Market Share and Profitability - E.l.f. Beauty improved its market share in the color cosmetics category by 195 basis points to 12%, despite a 5% decline in the overall category [4]. - The company experienced a consumption growth of 16% in tracked channels, which was below the expected 20% [4]. - Increased marketing costs impacted profitability [4]. International Growth - The company reported a 91% year-over-year increase in international revenue, successfully entering the German market and becoming the No. 1 brand in the stores it entered [5]. Guidance and Forecasts - E.l.f. raised its full-year fiscal 2025 guidance, now expecting sales to increase by 28% to 30%, up from a prior expectation of 25% to 27% [6]. - Updated fiscal 2025 outlook includes net sales of $1.315 billion to $1.335 billion, adjusted EBITDA of $304 million to $308 million, and adjusted EPS of $3.47 to $3.53 [7]. Marketing and Supply Chain - Management anticipates improved marketing leverage in fiscal Q4 due to more balanced spending [8]. - The company has room to diversify its supply chain, with approximately 80% of its products currently sourced from China [8]. Growth Opportunities - E.l.f. has been a strong growth story in the consumer products sector, capturing market share from established brands through affordable products and influencer marketing [9]. - The company is exploring international growth and expanding into the skincare category, having acquired Naturium in October 2023 [10]. Valuation - E.l.f. trades at a forward price-to-earnings ratio of 31 based on fiscal 2026 estimates, with a PEG ratio of 0.6, indicating potential undervaluation [11]. - Despite concerns about potential tariffs, the company has a history of overcoming such challenges while continuing to grow [11]. Investment Recommendation - E.l.f.'s current valuation is considered attractive, positioning it as one of the best growth stories in the consumer sector, suggesting a favorable investment opportunity [12].