Oddity says ‘deep misinformation’ in short report ‘cannot go unanswered’

Oddity issued a press release that states in part: “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… 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.”