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

Muddy Waters has taken a short position in Elf, claiming that the company possibly overstated its revenue by as much as $190 million over the past three years and inflated its inventory numbers to cover for insufficient sales, the hedge fund's CEO Carson Block said on Wednesday at a conference in London.

Shares of Elf fell as much as 16% on Wednesday following the short-seller report but pared losses to close 2.2% lower at $119. The stock has nearly quadrupled from 2023 to hit a record high in March.

"Muddy Waters' latest report is an attempt by a noted short-seller to negatively impact Elf Beauty's ( ELF ) share price for its own benefit and at the expense of all other Elf Beauty ( ELF ) shareholders, and Muddy Waters' allegations are without merit," Elf said in a statement.

Elf raised its forecasts for annual sales and profit earlier in November, becoming the only company performing well in a weak beauty market where legacy cosmetics brands such as Estee Lauder and L'Oreal have been facing slowing demand.

The beauty company also said on Thursday that for competitive reasons, it had filed a request for confidentiality with U.S. Customs and Border Protection in early 2024, with respect to customs import data.

"Therefore, import data available to the public after February 6, 2024, does not include a substantial majority of our actual U.S. imports," Elf said.

(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Devika Syamnath)