Leadership Change at Estée Lauder: Stéphane de La Faverie Expected as New CEO

The cosmetics giant Estée Lauder is on the verge of a significant leadership transition. According to reports by the Wall Street Journal, citing informed sources, the experienced manager Stéphane de La Faverie is set to take over as Chief Executive Officer. The official announcement could be made as early as this week. Jane Lauder, granddaughter of the company's founder Estée Lauder and also considered a potential candidate for the CEO position, plans to step down from the management by the end of the year. The current CEO, Fabrizio Freda, had announced his resignation at the beginning of this year. Indeed, de La Faverie will face several challenges left behind by Freda. The demand in China has been slow to recover since the pandemic, especially in duty-free shops, which are of strategic importance to Estée Lauder's brands. Company representatives have had to revise their forecasts for this region several times. Other cosmetics providers and luxury brands have also recently warned of declining spending by Chinese consumers, which could impact Estée Lauder's financial results. Analysts expressed after Freda's resignation announcement that an external candidate might be better suited to implement the necessary restructurings. Estée Lauder shares reduced their previous gain to 1.8% after having risen by as much as 6%. Since the beginning of the year, the stock value has fallen by almost 40%, while the S&P 500 Index has risen by 22%. Stéphane de La Faverie is one of two Executive Group Presidents at Estée Lauder and oversees brands such as Le Labo, Kilian Paris, and The Ordinary. He has been with the company since 2011, having previously worked at L'Oréal.