Estée Lauder Appoints Stéphane de La Faverie as CEO

Estee Lauder announced that it has appointed Stephane de La Faverie as its new CEO, effective January 1, 2025. The company is facing a decline in demand for cosmetics and premium fragrances and aims to revitalize its business as consumers become more selective in their spending.

Currently serving as chairman, de La Faverie is responsible for overseeing luxury fragrance brands such as Jo Malone London and Kilian Paris. He joined the company in 2011 after his tenure at L'Oreal and will replace Fabrizio Freda, who has led the company since 2009 and is set to retire. Freda will continue as a consultant until the end of the fiscal year 2026.

During Freda's tenure, Estee Lauder expanded its skincare line by acquiring brands such as Dr. Jart and The Ordinary's parent company, Deciem. Board chairman Charlene Barshefsky emphasized that de La Faverie's selection was unanimous after a thorough succession planning process that evaluated both external and internal candidates.

In a strategic shift, the company's founders' grandson and former CEO, William Lauder, will step down from his role as executive chairman but will remain as board chairman.

A key challenge that de La Faverie will face as CEO is boosting sales in the Chinese market, where there has been a decline in demand for "affordable luxury" products, particularly lipsticks and fragrances.

Estee Lauder is set to release its quarterly earnings report on Thursday. Previous quarterly forecasts indicated that annual profits and sales would fall short of expectations, largely due to a weakening market in China. The company’s stock has declined by approximately 40% this year.