Continuity mistake: When Craig and Day-Day are standing in the parking lot looking at the store "pimps and hoes" the pimp pulls up in a Plymouth Prowler. In the first shot he pulls up too far and hits the curb with the nose of the Prowler. In the next shot the car is about two feet back from the curb.
Plot hole: It's never explained how Ms. Pearly the landlord knew Craig and Day Day since they were kids, and it also doesn't make much sense how Craig and Day Day are so scared of Damon and can correctly recall him being this super buff grown adult, when he was locked up for 12 years and their characters are all in their early 20s.
Answer: He's insulting Mrs. Pearly by insinuating she has a mustache and that she needs to trim it to look neat.
Bishop73