Yesterday, in a significant leadership transition, Stéphane de La Faverie has been appointed as the new chief executive officer of Estée Lauder Companies, according to a report by The Wall Street Journal. De La Faverie, a veteran of the company with over 13 years of experience, has held various leadership positions, most recently serving as executive group president for the past two years. His deep ties to the founding family and extensive knowledge of the brand have positioned him as a strong successor to Fabrizio Freda, who has faced mounting pressure as the company’s stock price has declined since 2022.
While Estée Lauder Companies has refrained from commenting on the appointment, the announcement follows a period of speculation regarding the company’s succession strategy. Jane Lauder, the current chief digital officer and another contender for the top role, is expected to step down by the end of 2024, further consolidating de La Faverie’s leadership path.
In collaboration with Jane Lauder, de La Faverie has been at the forefront of Estée Lauder’s “profit growth and recovery plan,” initiated in 2023. This strategic initiative aims to revitalize the company’s performance by focusing on rebuilding core brand equity and addressing persistent challenges in its Asian markets, which have been a drag on results.
According to the latest financial report, Estée Lauder’s net sales for fiscal year 2024 were $15.61 billion, a 2% decrease year-over-year; sales in the Asia-Pacific region were $1.205 billion, a 7% decrease year-over-year.
