On August 19, The Estée Lauder Companies Inc. announced that President and CEO Fabrizio Freda has informed the Board of Directors of his intention to retire at the end of fiscal year 2025.
The company’s Board of Directors has been engaged in a long-term CEO succession plan and is well advanced in the process of considering highly qualified candidates both internally and externally. Until a successor is appointed, Freda will continue to oversee the company’s strategic, financial, and investment priorities, focusing on driving the Profit Recovery and Growth Plan, as well as efforts to reignite profitability and growth. Additionally, once a successor is named, Freda will assist with a smooth transition and will remain as an advisor in fiscal year 2026.
Fabrizio Freda joined The Estée Lauder Companies in 2008 and became President and CEO in July 2009. Since then, he has led the company’s global growth and digital transformation, establishing Estée Lauder as a leader in the beauty industry. Under his leadership, the company has successfully expanded into new markets and channels and has developed a diverse brand portfolio. Freda has also driven consumer-focused innovation and the establishment of sustainable business models, earning high praise within and outside the industry.
William P. Lauder, Chairman of the Board, stated, “On behalf of the entire Board of Directors and the Lauder family, we wish to extend our sincere gratitude to Fabrizio for over sixteen years of devoted service to the Company. We look forward to celebrating Fabrizio’s many amazing accomplishments as his formal retirement date nears. Until then, the Board, Fabrizio and the entire leadership team are laser-focused on navigating the current challenges faced by the Company.”
Lauder added, “On a personal note, Fabrizio has been an incredible partner to me as well as other members of the Lauder family. He understands the uniqueness of this family business and has used our long-term focus and principle of patient capital as a point of strength as he has transformed the business to meet evolving consumer aspirations.”
Upon announcing his retirement, Freda commented, “Leading The Estée Lauder Companies for sixteen years, is and has been, a true honor and privilege. I am so proud of our company’s incredible accomplishments, and to have built the most talented, dedicated, and passionate team in the industry. Together we have transformed the Company in beautiful ways; and we have set new standards for excellence. 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. 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. I look forward to continuing to work closely with our Board of Directors in the selection of my successor and ensuring a seamless transition.”
On August 19, 2024, The Estée Lauder Companies also reported its fiscal 2024 fourth-quarter and full-year results, with net sales declining by 2% year-over-year to $15.6 billion. The company faced challenges due to the ongoing weakness in the luxury beauty market in mainland China and a decline in Asia travel retail but saw growth in Hong Kong, Europe, the Middle East & Africa, Japan, and Latin America.
Additionally, the company’s net earnings for fiscal 2024 were $390 million, a significant decrease from $1.01 billion in the previous year. Diluted earnings per share also declined by 61% to $1.08, but adjusted diluted earnings per share reached $2.59, surpassing the company’s outlook.