Estee Lauder Appoints New CEO

(Reuters) – Estee Lauder has announced the appointment of insider Stephane de La Faverie as its new CEO, effective January 1, 2025. This decision comes as the company aims to revamp its operations due to declining demand for cosmetics and premium fragrances, as consumers become more selective in their spending.

De La Faverie, who has been with Estee Lauder since 2011 and is currently the executive group president, oversees luxury fragrance brands such as Jo Malone London, Frederic Malle, Le Labo, and Kilian Paris. He will succeed Fabrizio Freda, the incumbent CEO who announced his retirement in August 2023 and will serve as an adviser in fiscal year 2026.

Freda has been at the helm since 2009, expanding the company's skincare offerings with new brands like Dr. Jart and Deciem, the owner of The Ordinary. As per Charlene Barshefsky, the presiding board director, the board unanimously agreed on De La Faverie as the new CEO after rigorous succession planning and evaluation of both internal and external candidates.

Furthermore, William Lauder, the grandson of the company's founders and previous CEO, will step down from his role as executive chairman but will remain as chair of the board.

De La Faverie will face the challenge of revitalizing sales, particularly in China, amidst weakening demand for even classic luxury items such as lipsticks and perfumes. Estee Lauder is expected to report its quarterly earnings on Thursday, following recent forecasts of annual profit and sales falling short of expectations due to challenges in the Chinese market. Notably, the company's shares have plummeted nearly 40% this year.