The Estée Lauder Group has appointed Stéphane de La Faverie as its new CEO and member of the Board of Directors. The promotion of the Group’s current Executive Chairman comes at a time when former CEO Fabrizio Freda is retiring after 16 years with the company, and demand in China is slowing sharply.
Stéphane de La Faverie officially becomes the new CEO of The Estée Lauder Companies. He was previously Executive President in charge of the company’s integrated planning and end-to-end business operations.
With 25 years’ experience in prestige beauty, Stéphane de La Faverie previously held the position of International President of the Estée Lauder brand, having previously worked for the l’Oréal group.
He will take up his new position on January 1, 2025. He will report directly to the company’s Board of Directors. For his part, William P. Lauder will step down from his current role as Executive Chairman of the company, and will remain Chairman of the Board of Directors, following the company’s next annual shareholders’ meeting.
Stéphane de La Faverie joins a climate of managerial reorganization, which has seen the appointment of two new leaders for The Estée Lauder Companies’North America region in the persons of Tara Simon and Amber English, respectively Regional President and Regional President of Digital and Online Services.
Ideal leader
Before handing over the torch, current Group CEO of The Estée Lauder Companies, Fabrizio Freda, will support Stéphane de La Faverie over the coming months “to ensure a smooth transition.”
William P. Lauder, who intends to concentrate on his role as Chairman of the Board, optimistically welcomed the arrival of the Group’s new CEO: “When I reflect on the sixteen years of working alongside Fabrizio and so many talented leaders and employees, I am immensely proud of what we have achieved.” He says he is “convinced that Stéphane will be an effective and forceful CEO, capable of taking the decisive steps needed to meet today’s challenges, and that he and the next generation of the company’s leaders will lead us to even greater success.”
Charlene Barshefsky, Chairman of the Board of Directors, happily describes Stéphane de La Faverie as “the ideal leader”, noting that he “was the obvious choice of the Board of Directors because of his strategic vision, his global industry knowledge and experience, his deep ambition for the company and its remarkable brands, and his unique ability to meet the challenges facing the company to re-launch its growth”. It adds “his in-depth knowledge of our business will enable Stéphane to quickly assess opportunities and implement strategic plans.”
More generally, the press release praises “his extensive commercial expertise, his ability to navigate complex global supply chains, his experience in disruption management, and his ambition and commitment to strengthening the company and its brands” as “essential leadership qualities at a time when the company is undergoing a strategic reset.”
For his part, the principal interested party said he was “humbled and excited to be taking the helm of a company founded by a visionary entrepreneur whose legacy continues to inspire us today.”
25 years in prestige beauty
Stéphane de La Faverie ‘s 25 years of experience in the prestige beauty sector made him the ideal internal candidate, even overruling Jane Lauder, a member of the founding family. He joined the Estée Lauder Group in 2011 , and has held the position of Group Executive Chairman since September 2022, overseeing many of the company’s brands across its powerful portfolio. This includes both billion-dollar brands such asEstée Lauder and developing brands such as Jo Malone London, The Ordinary and Le Labo.
During his time as International President of the Estée Lauder brand from July 2016 to September 2022, Stéphane de La Faverie “focused uncompromisingly on brand excellence and innovation across categories, geographies and channels, as well as his ability to drive profitability with discipline, speed and efficiency.”
Among his many achievements, the group highlighted his “important role in enhancing the company’sfragrance portfolio at a pivotal time for the category”. It also mentions his “key role in implementing the company’sturnaround and earnings growthplan to restore stronger, more sustainable profitability.”
Prior to joining The Estée Lauder Companies, Stéphane de la Faverie was General Manager of Giorgio Armani Beauty, a division of L’Oréal.
He began his career at L’Oréal with the Lancôme Global brand at the end of 2001, then joined the Travel Retail division as Regional Director of the Luxury Products Group, overseeing the Lancôme, Giorgio Armani, Ralph Lauren and Biotherm beauty brands. Shortly afterwards, he was appointed General Manager of Lancôme, and in 2006 was promoted to Vice President of Marketing, overseeing both the skincare and fragrance categories.
Towards revitalized growth
“We are extremely focused on revitalizing our growth through breakthrough innovations, unforgettable experiences and cutting-edge marketing to inspire our consumers worldwide,” said the new CEO.
The beauty and luxury sector is currently facing a series of headwinds accentuated by slowing sales in China. The Estée Lauder Companies’ main rival, the l’Oréal group, has reported a fall in quarterly sales in recent days, citing reduced confidence among Chinese customers. While sales were up 2.8% on a reported basis and +3.4% on a comparable basis to 10.28 billion euros, they were still below forecasts. This is a worrying sign for Estée Lauder, which is preparing to publish its quarterly results on October 31.
Read also > Estée Lauder: North America region welcomes two new executives
Featured Photo: © The Estée Lauder Companies
