Estée Lauder Companies (EL) shares are trading lower on Wednesday, reflecting investor anticipation ahead of the company’s fiscal 2025 first-quarter earnings report scheduled for release on October 31, 2024. The stock has already experienced a decline of over 31% in the past year, according to Benzinga Pro, likely influenced by a combination of economic pressures and the changing landscape of the beauty industry.
Adding to the news flow, Estée Lauder announced a significant leadership change, appointing Stéphane de La Faverie as its new President and Chief Executive Officer, effective January 1, 2025. He will also join the Board of Directors, succeeding Fabrizio Freda, who has chosen to retire after more than sixteen years with the company. Freda’s departure marks the end of an era for Estée Lauder, as he played a crucial role in guiding the company through a period of substantial growth and transformation.
De La Faverie, currently serving as Executive Group President, brings a wealth of experience to the CEO role. He oversees a diverse portfolio of brands under the Estée Lauder umbrella, including industry giants like Estée Lauder itself, as well as developing brands such as Jo Malone London, The Ordinary, and Le Labo. Before joining Estée Lauder in 2011, he served as General Manager of Giorgio Armani Beauty USA, a division of L’Oréal Paris. This background suggests a deep understanding of the beauty market and its diverse consumer segments.
To ensure a smooth transition, Freda will work closely with de La Faverie over the coming months, fostering continuity and maintaining the company’s strategic direction. This collaborative approach aims to mitigate potential disruptions during the leadership change. Meanwhile, William P. Lauder will step down as Executive Chairman but will remain Chair of the Board, providing a sense of stability and continuity at the highest level of the company’s governance.
Investors seeking exposure to Estée Lauder can explore options like the VanEck Morningstar Wide Moat Growth ETF (MGRO) and the KraneShares Global Luxury Index ETF (KLXY), both of which hold shares of EL.
At last check on Wednesday, EL shares were trading down by 0.98% at $87.88. The market is likely to remain focused on the company’s upcoming earnings report, as it will provide insights into its performance and strategic direction under the new leadership.
The changing economic landscape, the shift in consumer preferences, and the evolving beauty industry will all factor into the company’s success in the coming years. De La Faverie’s leadership, combined with the company’s focus on innovation and consumer engagement, will be crucial for Estée Lauder’s continued growth and success.
