Initial response to the short seller report published on May 21st 2024
May 21 2024 - 3:21PM
ODDITY Tech Ltd. (NASDAQ: ODD)
While ODDITY doesn’t engage with self-interested short sellers
and hostile interests, the level of deep misinformation in this
report cannot go unanswered.
ODDITY fundamentally rejects the short seller report. The
allegations contained in the report by NINGI Research are based on
demonstrable factual inaccuracies, incorrect assumptions, and
unfounded and malicious speculation. The short seller report was
published without any involvement by ODDITY.
- The main allegation in the report that the Israeli
brick-and-mortar business is a significant portion of ODDITY’s
revenue and EBITDA is a complete falsehood. ODDITY’s
parent company is an Israeli entity, a fact that could have led to
the fundamental misunderstanding in the report regarding the source
of our group revenue. The brick-and-mortar business in Israel (43
retail stores and 6 beauty schools) represents an immaterial part
of our business, accounting for less than 5% of ODDITY’s
Net Revenue and less than 5% of ODDITY’s EBITDA in both FY2023 and
Q1 2024. The Israeli business operations have
always been reflected in our financial disclosures. All of
ODDITY’s revenue outside of Israel is exclusively from online
sales.
- All of ODDITY’s Israeli subsidiaries are fully audited by Ernst
& Young, our auditors on record, and the financial statements
are filed with the Israeli authorities. Their results are
consolidated with the group, as required, hence there are no
standalone reports.
- The overwhelming majority of the “hundreds of lawsuits”
mentioned in the report are small-claims suits related to our
stores’ business in Israel. In the aggregate these total
less than $100,000.
- ODDITY firmly stands behind its use of technology to deliver a
personalized beauty experience to consumers to drive conversion,
customer loyalty, repeat purchase rates, and business results. Any
other claim is purely false. Our investment in technology is the
main driver behind the company’s massive scale and high
profitability as an online business.
- ODDITY firmly stands behind its strong and positive customer
experience, as evident by the tens of thousands of 4 and 5 star
reviews on many independent review websites, such as
Trustpilot.com, Google, etc. As ODDITY stated on its earnings call
– it is important to understand that the consumer claims represent
a fraction of a percent of our sale volume. ODDITY will always
continue to address incidents of dissatisfaction and keep its
customers satisfied and loyal.
Short sellers and competitors will not deter us from continuing
to deliver the best online customer experience and to take
significant market share of the beauty industry.
About ODDITY:
ODDITY is a consumer tech company that builds and scales
digital-first brands to disrupt the offline-dominated beauty and
wellness industries. The company serves approximately 50 million
users with its AI-driven online platform, deploying data science to
identify consumer needs, and developing solutions in the form of
beauty and wellness products. ODDITY owns IL MAKIAGE and
SpoiledChild. The company operates with business headquarters in
New York City, an R&D center in Tel Aviv, Israel, and a
biotechnology lab in Boston.
Contacts:
Press:Michael Braunmichaelb@oddity.com
Investor:investors@oddity.com
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