Last week, Retail Beauty reported that longtime Estée Lauder Companies (ELC) executive Stéphane de La Faverie was set to become CEO, succeeding Fabrizio Freda following his planned retirement next June. This has now been confirmed in a statement released by ELC.

ELC has officially announced this significant leadership transition amid current challenges in key markets. De La Faverie will take over as President and Chief Executive Officer on January 1, 2025, following Freda’s 16-year tenure. De La Faverie, who joined the company over a decade ago and now serves as Executive Group President, has been instrumental in guiding major brands like Jo Malone London, and Le Labo through periods of dynamic growth. Freda will support de La Faverie in ensuring a smooth transition.

The leadership shift comes as Estée Lauder reports a 4% decline in first-quarter net sales, attributed to decreased consumer demand in mainland China and lower conversion rates in Asia’s travel retail sector. Quarterly revenue dropped from $3.52 billion in the prior year to $3.36 billion. The company also reported a net loss of $156 million, impacted by a $159 million settlement related to talcum litigation claims.

Despite these setbacks, Estée Lauder saw growth in its luxury fragrance segment, bolstered by brands like Le Labo and the recent launch of Balmain Beauty. De La Faverie’s extensive expertise in prestige beauty will be key as he works to guide the company through these challenges.

William P Lauder, who will step down from his current role as Executive Chairman but will remain Chair of the Board, described de La Faverie as a transformational leader suited to steer Estée Lauder into its next growth phase amidst complex global market conditions.

“Stéphane’s deep-rooted industry and operational expertise, and his collaborative and dynamic approach, make him the ideal CEO to move us forward with speed, and urgency,” he said. “Having worked closely with him for many years, I can attest to Stéphane’s ability to nurture and build powerful prestige brands, while his thorough understanding of and respect for our Company’s heritage and culture positions him well for success in this role. 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 Companies and accelerates us along our path to a promising future.”

Lauder continued, “As I reflect on sixteen years of working alongside Fabrizio and so many talented leaders and employees, I am immensely proud of what we have accomplished. My decision to focus solely on my role as Chair of the Board represents an important evolution for the Lauder family. Our family’s long-standing day-to-day management of the Company is evolving and reflects my desire to focus more on the overall strategic direction of the Company. As a family, we remain committed to this incredible Company and continue to view our investment through the lens of long-term patient capital. I am confident that Stéphane will be an effective, impactful CEO, able to take the decisive actions needed in the face of our current challenges, and that he and the next generation of the Company’s leadership will steer us towards even greater success.”

Presiding Director Charlene Barshefsky added that de La Faverie’s deep industry experience and commitment to sustainable growth made him the Board’s top choice.

“Following a comprehensive CEO succession planning process, and a thorough review of external and internal candidates, Stéphane was the clear choice of the Board for his mix of strategic vision, global industry knowledge and experience, profound ambition for the Company and its remarkable brands, and unique ability to address the challenges facing the Company to revitalise growth,” she said. “His deep knowledge of our Company will enable Stéphane to quickly assess opportunities and implement strategic plans. His inclusive leadership style will enable him to inspire and mobilise the Company with speed and agility and set us on a path to long-term, sustainable growth and drive shareholder value.”

De La Faverie aims to build on Estée Lauder’s Profit Recovery and Growth Plan (PRGP), which has already demonstrated early success in bolstering profitability. He emphasised his dedication to innovation and enhancing consumer engagement, positioning Estée Lauder as a leader in the evolving beauty landscape.

“As we work together to return to our pre-eminent position as the leader in global prestige beauty, we will draw on our family heritage, extraordinary brands, exceptional talent, consumer-centric approach and creativity – core elements that reflect our very DNA,” he said. “We are extremely focused on revitalising our growth via groundbreaking innovation, unforgettable experiences, and cutting-edge marketing to inspire our consumers worldwide. I am grateful to Fabrizio for his strategic guidance, and I look forward to working with him on a seamless transition. It is an honor to advance this legacy of excellence, and I am excited to lead our incredible teams as we work together to shape the beauty landscape of tomorrow while representing the interests of all shareholders.”

This leadership change is a critical moment for Estée Lauder as it faces market volatility in China and broader global pressures. Moving forward, the company will prioritise growth in emerging markets, product innovation, and digital engagement—strategic areas where de La Faverie has excelled throughout his career.

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