Fabrizio Freda, who has been at the helm of The Estée Lauder Companies since 2009, informed the Board of Directors of his plans to retire at the end of fiscal year 2025. The news comes after confirmation in July that Tracey T. Travis, Executive Vice President and Chief Financial Officer, will retire in June 2025, succeeded by Akhil Shrivastava.
Freda’s departure has been the subject of much speculation as the business struggled to recover after the pandemic, with its stock price down some 70% since 2022. While Estée Lauder’s fourth-quarter results exceeded analyst estimates but its outlook for fiscal 2025 fell short of Wall Street expectations.
According to a statement, no successor has been revealed, but the Board of Directors is “well advanced” in succession planning, considering internal and external candidates. Until a successor is appointed, Freda will continue to lead and oversee the company's strategic, financial, and investment priorities. He will remain an advisor through fiscal year 2026.
WWD sources say Jane Lauder, Executive Vice President of Enterprise Marketing and Chief Data Officer, and Stéphane de La Faverie, Group President, are contenders. Recently, the duo was named “co-executive leaders” of the newly named Profit Recovery and Growth Plan (PRGP), which is expected to drive incremental operating profit of $1.1 billion to $1.4 billion. They each report to Freda.
On his retirement, Freda said, “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.”
While the past few years of business have been rocky, it saw many years of success under Freda, resulting in a share price jump from $16.75 in 2009 when Freda became CEO, to a peak of over $370 in January 2022, giving it a market capitalization of more than $133 billion. He also made blockbuster acquisitions like DECIEM and Tom Ford.
