NEW YORK - ODDITY Tech Ltd. (NASDAQ:ODD), a consumer tech company specializing in the beauty and wellness sectors, has publicly refuted allegations made by NINGI Research in a recent short seller report. The company emphasizes that the report contains "demonstrable factual inaccuracies" and "unfounded and malicious speculation."
The disputed report suggested that ODDITY's Israeli brick-and-mortar operations, which include 43 retail stores and 6 beauty schools, are a significant source of revenue and EBITDA for the company. ODDITY clarified that these operations are, in fact, an immaterial segment, contributing to less than 5% of net revenue and EBITDA in both fiscal year 2023 and the first quarter of 2024.
The company also addressed the claims regarding lawsuits, stating that the majority are small-claims suits related to its Israeli stores, totaling less than $100,000. ODDITY stressed the strength of its online business model, attributing its success to the use of technology in delivering personalized beauty experiences, which has been a major factor in its scale and profitability.
ODDITY's commitment to customer satisfaction was reinforced, pointing to the thousands of high ratings on independent review websites. The company highlighted that consumer claims represent a negligible portion of their sales volume and that they will continue to prioritize customer satisfaction.
The press release statement from ODDITY also underscored that all of its Israeli subsidiaries are fully audited by Ernst & Young, and their financial statements are filed with Israeli authorities and consolidated with the group as required.
ODDITY Tech Ltd. operates with its business headquarters in New York City, an R&D center in Tel Aviv, Israel, and a biotechnology lab in Boston. It owns brands such as IL MAKIAGE and SpoiledChild and serves approximately 50 million users with its AI-driven online platform. The company remains steadfast in its mission to disrupt the offline-dominated beauty and wellness industries through its digital-first brands.
InvestingPro Insights
Amidst the controversy surrounding ODDITY Tech Ltd. (NASDAQ:ODD), the company's financial health and market performance remain a focal point for investors. According to InvestingPro data, ODDITY has a market capitalization of 2.33 billion USD, indicating its significant presence in the consumer tech sector. The company's commitment to technological innovation in beauty and wellness is reflected in its impressive gross profit margins, which stand at 71.55% for the last twelve months as of Q1 2024.
ODDITY's growth trajectory is further evidenced by a robust revenue increase of 38.75% over the same period. This aligns with the optimism of analysts, as captured in one of the InvestingPro Tips, which states that analysts anticipate sales growth in the current year. Additionally, the company's P/E ratio has adjusted to 25.42, suggesting a more favorable valuation when considering its near-term earnings growth. Another InvestingPro Tip highlights that ODDITY is trading at a low P/E ratio relative to this expected earnings growth, making it an attractive prospect for value-oriented investors.
Investors looking to delve deeper into ODDITY's financials and market prospects can find more InvestingPro Tips at https://www.investing.com/pro/ODD. For those interested in subscribing to InvestingPro for comprehensive analyses, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 5 additional InvestingPro Tips available for ODDITY, offering a broader perspective on the company's performance and potential.
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