Elf Beauty said on Thursday allegations by short-seller Muddy Waters about the beauty company overstating its revenue and inventory numbers were "without merit".

At the Sohn Conference in London, the short-seller Muddy Waters revealed its latest target: ELF Beauty.

Elf Beauty is pushing back against allegations by Muddy Waters, which accused the company of overstating revenue and inflating inventory.

Muddy Waters has taken a short position in cosmetics company Elf Beauty, the hedge fund's chief executive Carson Block said at the Sohn conference in London on Wednesday. Shares in Elf were down 10% on the day after Block alleged at the event that Elf had overstated its revenue over the past three years,

The short seller's report stated that, over the past three quarters, e.l.f. Beauty has “materially overstated revenue” by about $135 million to approximately $190 million. Als

E.l.f Beauty called a short-seller’s report meritless a day after its publisher, Muddy Waters Research, accused the cosmetics company of overstating its revenue.