Fabrizio Freda, the long-serving CEO of Estée Lauder Companies, has announced his intention to retire at the end of the 2025 fiscal year, specifically in June 2025. This decision comes after more than 16 years of leadership during which Freda has significantly shaped the brand’s global presence. Under his guidance, Estée Lauder expanded its portfolio, acquiring prestigious names like Tom Ford and La Mer, yet faced challenges in recent years.

The company’s struggles have been well-documented, including a staggering 70% decline in stock price since 2022, primarily attributed to overexposure in the Chinese market and waning demand for luxury cosmetics. Despite these setbacks, Freda propelled the company to witness its first net sales increase after six consecutive quarters of decline, indicating a potential turnaround.

The board is actively pursuing a successor, evaluating both internal and external candidates to fill the void left by Freda. Throughout this transition, he will lend his expertise as an advisor in 2026. William P. Lauder, the executive chairman, expressed gratitude for Freda’s dedication and highlighted his unique understanding of the family-owned business dynamics.

Freda’s tenure is a testament to effective leadership amid challenges, providing valuable insights for the beauty industry’s evolution. Transitioning to a new leader could redefine Estée Lauder’s strategy, ensuring robust recovery while aligning with changing consumer behaviors.