Estée Lauder Appoints Stéphane de la Faverie as New CEO Amid Strategic Transition

In a pivotal leadership shift for the global beauty industry, Estée Lauder Companies (ELC) has officially appointed Stéphane de la Faverie as its new President and Chief Executive Officer, effective January 1, 2025. This highly anticipated appointment, confirmed in a company statement on Wednesday, also comes as William Lauder prepares to step down from his role as Executive Chairman, transitioning to Chair of the Board of Directors after the company’s annual stockholders meeting. For the first time in Estée Lauder’s storied history, the daily operations of the company will be entirely in the hands of non-family members.

The transition marks a significant moment for the Lauder family legacy. Following Jane Lauder’s announcement on Sunday that she will be stepping back from her operational role, the iconic beauty house will see a departure from active family involvement in its management. However, in a joint memo from William Lauder and outgoing CEO Fabrizio Freda, it was made clear that the Lauder family will continue to play a strategic role through their substantial equity holdings and governance influence. “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”, the memo emphasized, underscoring a commitment to legacy stewardship.

Stéphane de la Faverie’s ascension to CEO comes after a distinguished tenure at Estée Lauder, which he joined in 2011 as Senior Vice President and Global General Manager for Aramis and designer fragrances. In his most recent role as Executive Group President, de la Faverie managed a diverse portfolio of high-performing brands, including Estée Lauder and AERIN Beauty, Jo Malone London, Le Labo, and Deciem. His leadership approach, deeply rooted in brand heritage and strategic innovation, will be crucial as ELC navigates a competitive market landscape. “I am deeply humbled and excited to lead The Estée Lauder Companies, a firm founded by a visionary entrepreneur whose legacy continues to inspire us today”, he said in a statement. “We are focused on revitalizing growth through groundbreaking innovation, unforgettable experiences, and cutting-edge marketing to inspire our consumer worldwide”.

Fabrizio Freda, who has held the CEO position since 2009, will leave behind a complex legacy. Under his leadership, Estée Lauder ascended to become the global leader in prestige beauty, with the company’s share price soaring from $16.75 in 2009 to an all-time high of over $370 in January 2022, achieving a market capitalization of $133 billion. However, more recent years have brought challenges. A slow recovery from the pandemic, compounded by sluggish performance in Asia’s travel retail sector and a stalled Chinese market, has significantly impacted growth. As a result, Estée Lauder’s stock price tumbled, closing at $88.75 on Tuesday, with analysts highlighting the urgent need for innovation, engagement with your consumers, and stronger brand messaging.

Freda expressed confidence in de La Faverie’s capability to navigate these complexities: “Having worked alongside Stéphane for many years, I am thrilled to welcome him as the next President and CEO. His visionary leadership, strategic insights, and deep understanding of our brands will enable him to guide the company toward sustainable growth in a dynamic and ever – evolving market”, he stated.

As industry insiders look ahead to Fiscal 2025, the outlook remains cautiously optimistic yet challenging. Estée Lauder has forecasted a decrease in both reported and organic net sales between 1 and 2 percent. Analysts are calling for urgent strategic pivots, emphasizing the importance of product innovation and the necessity to capture the attention of a younger demographic. Yet, with the la Faverie at the helm, there is hope that his blend of creativity, strategic acumen, and respect for the brand’s heritage will usher in a transformative era for the company.

This new chapter at Estée Lauder is poised to test the company’s resilience and capacity for reinvention. The global beauty community will be watching closely as the De La Faverie steers this iconic brand into an uncertain yet promising future, guided by a vision that seeks to balance tradition with modernity in the ever-evolving world of prestige beauty.