The Estee Lauder Companies’ president and CEO Fabrizio Freda will step down at the end of FY25 after leading the company for more than 16 years.
The board said it is well advanced in the CEO succession planning process with many highly qualified internal and external candidates. Freda will partner with the new leader to ensure a smooth transition and will also be available in FY26 as an advisor.
“As we manage for the long term, now is the right time to look ahead to the next generation of leadership for this great company,” said Freda.
“I will continue to be fully focused on the execution of our strategic reset and the profit recovery and growth plan as we continue to address the current challenges.”
For FY24, which ended on June 30, Estee Lauder reported a 2 per cent decline in sales to $15.61 billion. Organic net sales also fell 2 per cent, reflecting ongoing softness in overall prestige beauty in mainland China and a decline in Asia travel retail.
The decreases were partially offset by growth in Hong Kong, Europe, the Middle East & Africa, Japan and Latin America.
On the bottom line, net earnings dropped from $1.01 billion in the prior year to $390 million.
The company expects FY25 net sales growth to be in the range of -1 per cent to +2 per cent. The decline in Mainland China and Asia is forecast to continue throughout the year while the rest of the business will accelerate growth.
The Estee Lauder Companies sells in approximately 150 countries and territories under brands such as Estee Lauder, Aramis, Clinique, Mac, Bobbi Brown, Tom Ford, Smashbox, Le Labo, and Kilian Paris.
