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

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

Short seller Carson Block said he’s shorting the shares of cosmetics brand Elf Beauty Inc. Speaking at the Sohn conference in London on Wednesday, the chief executive officer of Muddy Waters Capital said he is shorting the stock because he has concerns linked to the Oakland, California-based firm’s revenue.