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Estée Lauder said to be reviewing brand portfolio under new management

Katie Ross
28 January 2025

The Estée Lauder Companies is reportedly reviewing its portfolio of beauty brands in an effort to turn the business around under new management, possibly denoting the sale of certain labels.

Sources close to the matter told Bloomberg that investment firm Evercore Inc is working alongside Estée Lauder to review its portfolio. However, decisions are still being made and the company is not set to definitely dispose of any of its brands.

It was announced in August that President and CEO Fabrizio Freda would be retiring at the end of fiscal 2025, after more than 15 years at the business.

In October, Estée Lauder, which owns Bobbi Brown, MAC Cosmetics and Clinique, withdrew its annual sales and profit forecasts and cut its dividends, just a day after it named Stéphane de La Faverie as its new CEO. De La Faverie took over the role on 1 January.

Business has been dented by a slump in demand in China and tough competition from newer beauty and skincare brands. In October, Estée Lauder said that it anticipated strong declines in the short term.

Shares in Estée Lauder fell 48.7% in 2024, following a 41% and 33% tumble in 2023 and 2022, respectively.

There has been significant movement within the company recently. In November, President for UK&I Sue Fox stepped down, with new Senior Vice President and General Manager UK&I Pernilla Nyberg announced the following day.

It was also announced in October that Jane Lauder, Chief Data Officer and Executive Vice President of Enterprise Marketing would be stepping down from her role.

Former CEO and grandson of the company founders William Lauder was also set to step down from his role as Executive Chairman last year.

Similarly, Ronald S. Lauder, who first joined the business in 1964 and served on its Board of Directors, announced his departure last week.

Estée Lauder did not respond to request for comment.


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