After leading Estée Lauder Companies (ELC) for nearly two decades, Fabrizio Freda has revealed his intention to retire from his role as President and CEO at the end of June 2025, marking the conclusion of the company’s fiscal year. During this period, Freda will continue to guide the luxury beauty giant’s strategic direction, financial objectives, and investment initiatives until a successor is named.
The search for Freda’s replacement is reportedly in an advanced stage, with both internal and external candidates under consideration. Freda, who has been at the helm of ELC since 2009, will stay on as an advisor to his successor until 2026 to ensure a smooth transition of leadership.
Reflecting on his tenure, Freda expressed deep pride in the achievements of the company and the team he has built. “Leading the Estée Lauder Companies for sixteen years, is and has been, a true honour and privilege,” Freda stated. He highlighted the transformation of ELC under his leadership, emphasizing the company’s innovation and commitment to excellence. “Together we have transformed the company in beautiful ways; and we have set new standards for excellence,” he added.
Freda also mentioned his commitment to seeing through ELC’s ongoing strategic reset and its Profit Recovery and Growth Plan, which aims to tackle current market challenges. He noted, “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.”
William P. Lauder, Executive Chairman of ELC, praised Freda for his years of service, stating, “On behalf of the entire board of directors and the Lauder family, we wish to extend our sincere gratitude to Fabrizio for over 16 years of devoted service to the company.” Lauder expressed confidence in the current leadership team’s ability to navigate ongoing challenges and reiterated the board’s commitment to a seamless leadership transition.
Lauder also spoke highly of Freda’s understanding of ELC as a family business and his ability to harness its unique values to drive growth. “Fabrizio has been an incredible partner to me as well as other members of the Lauder family. He understands the uniqueness of this family business,” he remarked.
Fabrizio Freda’s departure comes shortly after the retirement of Tracey Travis, ELC’s Chief Financial Officer for 12 years. Travis’s exit at the end of June set the stage for Akhil Shrivastava to step into the CFO role later this year.
The announcement of Freda’s retirement coincided with ELC’s fiscal 2024 financial results, which showed a 2% decline in net sales to $15.61 billion. This decrease has been attributed to a weaker performance in the prestige beauty market in mainland China and a drop in travel retail sales across Asia, particularly in the first half of the fiscal year. The company has also faced challenges, including job cuts, in response to these market conditions.
Freda’s impending retirement marks the end of an era for Estée Lauder Companies, a period defined by significant growth and transformation under his leadership. The board and the wider company now look to the future, preparing for a new chapter while acknowledging the substantial legacy Freda leaves behind.