Allegations Surface Against Oddity Tech by Short Seller Ningi Research

Allegations Surface Against Oddity Tech by Short Seller Ningi Research

THE WHAT?  Short seller Ningi Research has alleged that Oddity Tech, the parent company of Il Makiage and Spoiled Child, has misled investors by not being a purely online retailer and engaging in deceptive billing practices. Ningi Research released a 50-page report detailing their claims and holds a short position in Oddity Tech.

THE DETAILS  Ningi Research’s report accuses Oddity of operating over 40 stores in Israel, suggesting that the majority of its profits come from these physical locations rather than online sales in the U.S. Oddity Tech, however, has dismissed the report, stating that its Israeli brick-and-mortar operations constitute less than 5% of its net revenue. Ningi further alleged that Oddity’s impressive digital growth is due to subscriptions that are difficult for consumers to cancel, citing complaints from the Better Business Bureau and social media.

Oddity responded by defending its business practices and emphasizing that all revenue outside Israel is generated through online sales. The company also highlighted its dedication to customer satisfaction and the use of technology to address and resolve any issues.

THE WHY?  Ningi Research’s allegations challenge Oddity Tech’s claims of being a disruptive force in the beauty industry with a digital-only model. These accusations, if proven true, could undermine investor confidence and the company’s market position. Oddity’s robust denial and commitment to transparency and customer care aim to reassure stakeholders and maintain its reputation in the highly competitive beauty and wellness sector.