Estee Lauder (NYSE:) made a major announcement on Monday, revealing that its CEO, Fabrizio Freda, will be retiring at the end of the fiscal year 2025. This news comes just ahead of the company’s earnings release.
Having served as the company’s leader for over 16 years, Freda shared his decision with the Board of Directors, signaling the start of a significant leadership transition for the renowned global beauty powerhouse.
Estee Lauder has assured stakeholders that it is well-prepared for this CEO succession, having thoroughly considered both internal and external candidates for the role.
During this transitional period, Freda will continue to oversee the company’s strategic, financial, and investment priorities. This includes spearheading the ongoing Profit Recovery and Growth Plan aimed at reviving profitability and nurturing further growth.
Once a successor is named, Freda plans to collaborate closely with them to ensure a seamless handover. He has also committed to being available as an advisor throughout fiscal year 2026.
William P. Lauder, Executive Chairman of Estee Lauder, expressed gratitude to Freda for his dedication and highlighted his pivotal role in transforming the company to meet the ever-changing demands of consumers.
In response, Freda reflected on his tenure, expressing his deep honor and privilege in leading the company. He reiterated his dedication to the current strategic initiatives and conveyed confidence in the future leadership of Estee Lauder.
“Now is the right time to look ahead to the next generation of leadership for this great company,” Freda noted.
Aside from the leadership news, Estee Lauder also disclosed its latest quarterly earnings. The company reported a fourth-quarter adjusted EPS of $0.64, surpassing analyst expectations, with net sales reaching $3.87 billion.
Despite challenges in key markets such as mainland China and North America, Estee Lauder saw a 7% increase in sales compared to the same period last year. The growth was primarily driven by the global travel retail business within the Skin Care category.
Looking ahead, Estee Lauder forecasts a slight decline in first-quarter adjusted earnings per share but remains optimistic about the strategic growth initiatives in place. For the full year, the company anticipates adjusted earnings to range between $2.75 and $2.95 per share, with reported and organic net sales expected to show a slight variation compared to the previous year.