Estee Lauder Appoints New CEO

Estee Lauder (NYSE: EL) has appointed Stephane de La Faverie as its new CEO, effective January 1, 2025, amid declining demand for cosmetics and premium fragrances.

Currently the executive group president, de La Faverie oversees luxury fragrance brands such as Jo Malone London and Le Labo. He joined Estee Lauder in 2011 after working at L’Oreal.

De La Faverie succeeds Fabrizio Freda, who announced his retirement in August but will serve as an advisor through fiscal year 2026. Freda, CEO since 2009, expanded Estee Lauder’s skincare lineup through acquisitions, including Dr. Jart and Deciem.

Charlene Barshefsky, the presiding director, stated that de La Faverie was the clear choice following a detailed succession planning process. William Lauder, grandson of Estee Lauder’s founders, will step down as executive chairman but remain chair of the board.

Stéphane’s extensive industry expertise and collaborative approach are seen as vital for the company’s future. He will particularly focus on boosting sales in China, a market currently experiencing a slowdown in demand for affordable luxury items like lipsticks and perfumes.

The company is set to release its quarterly earnings soon, having previously forecasted disappointing profit and sales figures due to struggles in the Chinese market. Estee Lauder’s stock has fallen nearly 40% this year.