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.
Clinical aesthetics products refer to a category of products used in the field of medical aesthetics or cosmetic dermatology. These products are typically designed and formulated to be used under the supervision of healthcare professionals, such as dermatologists, plastic surgeons, or trained aestheticians. They are distinct from over-the-counter cosmetics in that they often contain active ingredients or formulations that require expertise in their application or administration.
Examples of clinical aesthetics products include:
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Dermal Fillers: Injectable substances used to add volume, smooth wrinkles, and enhance facial contours. Examples include hyaluronic acid fillers like Juvederm and Restylane.
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Botulinum Toxin (Botox): Injectables that temporarily paralyze facial muscles to reduce the appearance of wrinkles caused by repetitive movements, such as frown lines and crow's feet.
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Chemical Peels: Solutions applied to the skin to exfoliate and improve its texture. They can treat acne, pigmentation issues, and signs of aging.
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Laser and Light Therapies: Devices that emit focused light or laser energy to treat various skin conditions, including acne, scars, and signs of aging.
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Prescription Skincare Products: Formulations containing active ingredients like retinoids (vitamin A derivatives), hydroquinone, or prescription-strength antioxidants to address specific skin concerns under medical supervision.
