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It’s official: Stéphane de La Faverie is the new president and chief executive officer of the Estée Lauder Cos.
He will take the reins on Jan. 1, the company confirmed in a statement early Wednesday, as it also announced that William Lauder will step down from his current role as executive chairman of the company and will remain chair of the board of directors, following the company’s upcoming annual meeting of stockholders.
After Jane Lauder’s Sunday announcement that she will be departing her role at the company, this means that there will be no family members working in the day to day running of the company for the first time. De La Faverie’s hiring as CEO effective Jan. 1 also means that Fabrizio Freda, the current president and CEO, will be stepping down earlier than planned.
Of de La Faverie’s appointment, William Lauder said, “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 sent by William Lauder and Freda seen by WWD, the duo explained family involvement going forward.
“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,” it said. “As announced by the company this week, Jane Lauder plans to continue serving on the board of directors, alongside Gary, Ronald and William, with a shared focus on driving long-term growth that benefits all stockholders. Leonard, who will remain chairman emeritus, and Aerin, who will continue as founder and creator of AERIN, and style and design director of Estée Lauder Re-Nutriv, will also play influential roles in shaping our company.”
After many years at L’Oréal Paris, de La Faverie joined Lauder in 2011 as senior vice president, global general manager, Aramis and designer fragrances. Most recently, as executive group president, his portfolio of brands includes Estée Lauder and Aerin Beauty; Jo Malone London; Le Labo and Deciem, among others.
“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,” he said of his appointment. “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. We are extremely focused on revitalizing our growth via groundbreaking innovation, unforgettable experiences, and cutting-edge marketing to inspire our consumers worldwide.”
In a statement, Freda said: “Having worked alongside Stéphane for many years, I am thrilled to welcome him as the next president and CEO of the Estée Lauder Cos. and look forward to supporting a seamless transition. His visionary leadership is defined by his unwavering commitment to excellence and forward-thinking approach to enhancing our brands and shaping the consumer experience. In an industry as dynamic as prestige beauty, Stéphane’s deep knowledge, exceptional strength as a leader, and unique ability to combine inspiration, authenticity and strategic insights to drive profitable growth will enable him to guide the future success of the company’s portfolio.”
As widely reported, de La Faverie will have his work cut out for him. Under Freda’s tenure, Lauder became the top prestige beauty business in the world, but recently lost that status to L’Oréal.
The company’s share price jumped from $16.75 in 2009 when Freda became CEO to a peak of more than $370 in January 2022, giving it a market capitalization of more than $133 billion. On Tuesday, shares closed at $88.75.
The stock price tumbled as the company struggled to bounce back after the pandemic, and the Asia travel retail market and its Chinese business did not recover as quickly as it hoped. At the same time, analysts have pointed to a recent lack of innovation around product development and marketing, as well as weakness in its home market of the U.S.
Fiscal 2025 is lining up to be another tricky year. Reported and organic net sales are forecast to decrease between 1 percent and 2 percent, versus the prior year. The company will release it’s latest figures on Thursday.
Both analysts and industry insiders stressed that the company needs to focus on innovation, tapping into a younger audience and tightening brand messaging.
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