Estée Lauder family issues statement following declining sales

The Estée Lauder Companies has shared a message from the Lauder family, addressing its declining sales as it looks to bring the firm back to profitable growth.

The statement comes after Estée Lauder reported 4% decrease in net sales to £2.58 billion ($3.36 billion) for the first quarter, revealing single-digit declines across all beauty categories.

The company's recent performance primarily reflects further softness in overall prestige beauty in mainland China.

"This is a difficult time, and we know you feel this challenging moment deeply, as do we. Our recent results tell us we have much to improve upon. As a result, the company must continue moving forward on a necessary and fundamental turnaround plan to bring us back to profitable growth," the statement reads.

"We have navigated through challenging moments before, and the entire Lauder family is confident in The Estée Lauder Companies' ability to address the ever-changing market realities and re-establish our position as the global leader in prestige beauty. We know we will get through this, and we will be even stronger on the other side."

It comes after William and Jane Lauder, the grandchildren of founder Estée Lauder, announced their decisions to step away from their operational and managerial roles last week.

Jane will step down from her position as Chief Data Officer and Executive Vice President of Enterprise Marketing, while William will depart as Executive Chairman.

However, both will continue to serve the company as members of the Board of Directors, and as stockholders.

"The Lauder family intends to remain meaningful stockholders, ensuring that our values and our approach to long-term patient capital continue to play a vital role in the company. We will continue to work with the leaders at ELC to ensure our values are reflected," the statement added.

It also emphasised the appointment of Stéphane de La Faverie as President and CEO, replacing Fabrizio Freda, who will retire after nearly 14 years at the business.

"With more than 25 years in the beauty industry and nearly 14 years with our company, Stéphane will continue to nurture our incredible brands while driving innovation for the future of prestige beauty," the Lauder family continued.

"We know he has the courage, the drive, and an understanding of, and respect for, our company’s culture and values that will accelerate change quickly, effectively, and profitably.

"This is a moment where we must lean into our heritage, drawing strength from what makes us unique and enduring.

"As our mother and grandmother used to say, 'I didn't get there by wishing for it, I got there by working for it,' and we, too, will address this moment of difficulty by following her words. We know we can get there, because in our company’s history, we have never lost sight of the future or been afraid of the work ahead."