Estée Lauder Appoints Stéphane de La Faverie as New CEO Amidst Strategic Leadership Shift

Estée Lauder Companies has announced a significant transition in its leadership, appointing Stéphane de La Faverie as its new chief executive and president, effective January 1. De La Faverie, who has been with the company since 2011 and currently serves as executive group president, will also join the board of directors. This appointment coincides with the retirement of Fabrizio Freda, who has led the company for over 16 years.

In a strategic shift, William P. Lauder, the grandson of the founder and a pivotal figure in the company, will relinquish his role as executive chair on November 8 but will continue as chair of the board. This move marks a step back for the Lauder family from day-to-day operations, signaling a new era focused on strategic governance and maintaining their legacy as significant shareholders.

The company faces a challenging economic landscape, with recent financial reports indicating a downturn. For the fiscal year ending June 30, Estée Lauder reported a 2% decline in sales to $15.6 billion and a significant drop in net earnings to $390 million from the previous year’s $1 billion. These changes come at a time when the beauty industry grapples with sluggish sales, particularly in the critical Chinese market.

Despite these challenges, Estée Lauder remains committed to revitalizing its business. Under de La Faverie’s leadership, the company has initiated a Profit Recovery and Growth Plan, which includes workforce adjustments, brand investment, and product innovation aimed at improving margins and setting a course for recovery and growth.