The New President and CEO Takes Over from William Lauder Amid Continued Strategic Changes
Estée Lauder has officially named Stéphane de La Faverie as the new president and chief executive officer, set to assume the position on January 1. This announcement by the company coincides with news of current Executive Chairman William Lauder’s decision to step down while maintaining his role as the chair of the board of directors following the annual stockholder meeting.
This movement within the company follows the announcement that Jane Lauder will be parting ways with her current role, leaving no family members involved in daily operations for the first time. As de La Faverie takes up his CEO role, present CEO Fabrizio Freda will be leaving his post ahead of schedule.
On the subject of de La Faverie’s appointment, William Lauder shared, “His strategic vision will position the company to drive long-term growth in the face of its current challenges, as he deploys transformational new approaches for the future. This appointment marks an exciting new chapter in our company’s story, and I look forward to supporting Stéphane as he leads the many talented employees of The Estée Lauder Cos. and accelerates us along our path to a promising future.”
In an internal memo, William Lauder and Freda highlighted the ongoing role of the Lauder family, stating, “As ELC begins this next chapter, the Lauder family intends to remain meaningful stockholders, ensuring that their values and approach to long-term patient capital continue to play a vital role in the company’s governance.”
De La Faverie launched his career with Estée Lauder Cosmetics in 2011 following a tenure at L’Oréal Paris. His most recent role was as executive group president, where he managed a comprehensive portfolio of brands. Reflecting on his new appointment, he expressed,
I am deeply humbled and excited to lead The Estée Lauder Cos., a company founded by a visionary entrepreneur whose legacy continues to inspire us today. We are extremely focused on revitalizing our growth via groundbreaking innovation, unforgettable experiences, and cutting-edge marketing to inspire our consumers worldwide.”
Welcoming de La Faverie to the role, Freda stated his belief in his predecessor’s visionary leadership and commitment to excellence that will guide the future growth of the company.
The task ahead of de La Faverie is significant, given that Estée Lauder has lost its status as the top prestige beauty business to L’Oréal during Freda’s tenure. The company’s shares have experienced severe fluctuations, and the business has struggled to bounce back post-pandemic with a slower recovery than anticipated in the Asia travel retail market and its Chinese operations.
Entering fiscal year 2025, expectations point to a decrease in reported and organic net sales and suggest that the company needs to focus on innovation, attracting a younger consumer base, and refining brand messaging.