Estée Lauder reviews brand portfolio amid leadership changes

Estée Lauder is undergoing a strategic review of its beauty brand portfolio, potentially leading to the sale of some labels, as the company transitions to new leadership under CEO Stéphane de La Faverie. The cosmetics giant has enlisted Evercore Inc. to assist in this review amid significant challenges, including a 48.7% drop in stock value in 2024 and a decline in demand, particularly in China. The company recently withdrew its annual sales and profit forecasts and cut its dividend, reflecting ongoing struggles in the competitive beauty market. Key management changes include the retirement of Ronald S. Lauder from the board and the stepping down of other long-standing executives. The deliberations regarding potential brand disposals are still ongoing, with no certainty that sales will result from this review. Estée Lauder's efforts to revitalize its business signal a response to evolving consumer preferences and market dynamics.