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Estée Lauder Companies (ELC) has appointed Stéphane de la Faverie as chief executive officer and president of the American beauty conglomerate.
De la Faverie, who currently serves as the executive group president, steers the company’s integrated planning and end-to-end business operations. The portfolio of brands he oversees includes Estée Lauder, Aerin Beauty, Jo Malone London, Kilian and Deciem (The Ordinary and Niod), to name a few. He has held the position since 2020. De la Faverie succeeds Fabrizio Freda, who is retiring after leading the company for over 15 years. He will commence his new role effective 1 January 2025.
“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. 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,” said William P Lauder in a statement, who will also be stepping 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. “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,” he adds.
De la Faverie must shake up ELC’s strategy as the company’s latest earnings reflect a challenging landscape. Amid a prestige beauty net sales decline in China and a tempered performance in skincare and makeup (down 3 per cent for 2024), ELC is re-navigating the success of its latest acquisition, Tom Ford Beauty. There’s also the need for innovation and investment. “Estée Lauder needs a much clearer strategy in terms of appealing to consumers — including acquiring new ones across its various brands. At present, the group seems to be very muddled in terms of its brands, their position in the market and the distribution strategy. Overall, the company feels cumbersome,” says Neil Saunders, managing director and retail analyst at data research firm Globaldata.
One category de la Faverie will likely break early ground on is fragrance. Not only has the sector performed consecutively well this year for ELC — up 2 per cent, led by Le Labo and Jo Malone — but the executive has also had an integral hand in driving the category’s growth over the years, including at brands Estée Lauder and Aerin Beauty. Before joining the conglomerate, de la Faverie led L’Oréal’s Giorgio Armani perfume growth in the US between 2008 and 2010 as the company’s general manager. It has also been said that de la Faverie will leverage the skincare expertise he’s developed over the years to drive differentiation across the group and tap into the men’s skincare market — a strategy already at play with male skincare brand Lab Series, which launched on Amazon in August.
De la Faverie has a long journey ahead to steer Estée Lauder Companies out of turbulent waters amidst a luxury slowdown, but he’s confident. “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 revitalising our growth via groundbreaking innovation, unforgettable experiences, and cutting-edge marketing to inspire our consumers worldwide,” he concludes.
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