Estée Lauder’s Turnaround Strategy Faces Investor Scrutiny

Estée Lauder is navigating a critical period as it attempts to reverse a significant downturn in its business performance. The cosmetics giant’s ambitious “Beauty Reimagined” strategy has yet to convince a skeptical market, with recent disclosures regarding executive compensation raising questions about the alignment of leadership incentives with shareholder returns.

The company’s fiscal 2025 results underscored the depth of its challenges. Estée Lauder reported an 8% decline in organic sales and a sharp reversal into a loss of $3.15 per share. The most severe impact was felt in the previously lucrative travel retail segment, which contracted by a substantial 28%. This difficult backdrop coincides with the appointment of new CEO Stéphane de La Faverie, who commences his role with a base... Read more...