Official Announcement: Stéphane de la Faverie becomes the new President and CEO of Estée Lauder Cos.
He will take over on January 1, the company confirmed in a statement early Wednesday morning, and also announced that William Lauder will step down from his current role as executive chairman and remain chairman of the board. The company’s next annual general meeting.
This marks the first time a family member will no longer be involved in the company’s day-to-day operations, after Jane Lauder announced Sunday that she would be leaving her role at the company. Mr. de la Faveri’s appointment as CEO on January 1 also means that current president and CEO Fabrizio Frida will be retiring earlier than planned.
William Lauder said of de la Faverie’s appointment: “His strategic vision will enable us to develop innovative new approaches for the future and ensure long-term growth in the face of current challenges. We will be a company that promotes This appointment marks an exciting new chapter in our company’s story, and I look forward to supporting Stefan as he leads the Estée Lauder Company’s many talented employees and accelerates our company’s path to a promising future. I am. ”
In an internal memo sent by William Roeder and Frieda, seen by WWD, they explained their future family involvement.
“As ELC begins its next chapter, the Lauder family intends to remain meaningful shareholders, ensuring that their values and approach to long-term patient capital continue to play a key role in the company’s governance. ” the company said. “As the company announced this week, Jane Lauder will continue to serve as a member of the Board of Directors alongside Gary, Ronald and William, with a shared focus on driving long-term growth for the benefit of all shareholders. Mr. Leonard will remain Chairman Emeritus, and Mr. Aerin will continue to play an influential role in shaping the company as founder and founder of AERIN and Style and Design Director of Estée Lauder Re-Nutribe. It will be.”
After many years at L’Oréal Paris, Mr. de la Faverie joined Lauder in 2011 as Senior Vice President and Global General Manager of Aramis and Designer Fragrances. Most recently, as Executive Group President, his brand portfolio includes Estée Lauder and Aerin Beauty. Jo Malone London. Le Labo, Deciem, etc.
Commenting on his appointment, Mr. It continues,” he said. “As we work together to return to our pre-eminent position as a global prestige beauty leader, we are committed to our family heritage, extraordinary brands, extraordinary talent, consumer-centric approach and creativity – the very essence of who we are. We leverage core elements that reflect our DNA. We fuel growth through breakthrough innovation, unforgettable experiences, and cutting-edge marketing to inspire consumers around the world. We are very focused on making it happen.”
Frieda said in a statement: “Having worked with Stephen for many years, I am excited to welcome him as Estée Lauder’s next president and CEO and look forward to supporting a seamless transition. Visionary leadership is defined by an unwavering commitment to excellence and a forward-thinking approach to strengthening our brands and shaping the consumer experience in an industry as dynamic as Prestige Beauty. Stefan’s deep knowledge, leadership excellence, and unique ability to combine inspiration, credibility, and strategic insight to drive profitable growth will position him to guide the future success of the company’s portfolio. You can do it.”
As has been widely reported, Mr. de la Faverie will be given the job he deserves. During Frida’s tenure, Lauder became one of the world’s top luxury beauty companies, a position it recently lost to L’Oréal.
The company’s stock price soared from $16.75 in 2009, when Frieda became CEO, to a high of more than $370 in January 2022, giving it a market capitalization of more than $133 billion. The stock closed Tuesday at $88.75.
Shares fell as the company struggled to recover post-pandemic, with its Asian travel retail market and China business not recovering as quickly as expected. At the same time, analysts point to a recent lack of innovation in product development and marketing, as well as weakness in its home U.S. market.
2025 is expected to be another challenging year. Reported net sales and organic net sales are expected to decline 1% to 2% year over year. The company is expected to release updated numbers on Thursday.
Analysts and industry insiders alike emphasized that the company needs to focus on innovation, develop a younger audience, and strengthen its brand message.
