Dive Brief:
- Estée Lauder Companies announced Thursday that Leonard Lauder will not stand for re-election to the company’s board of directors. He will remain the Chairman Emeritus, according to a press release.
- Leonard Lauder has the right to designate two directors of the company and has chosen his sons William Lauder, who serves as the executive chairman, and Gary Lauder to serve on the board.
- The company’s board included Gary Lauder’s name among the nominees for election at its annual meeting in November.
Dive Insight:
Leonard Lauder, son of founder Estée Lauder, is stepping back from the board, while remaining Chairman Emeritus.
Leonard Lauder joined the company in 1958 and served as president from 1972 to 1995, and as CEO from 1982 to 1999. He was named chairman of the board in 1995 and served in that role through 2009.
“My father envisioned and helped drive the growth and expansion of our company from an iconic single brand to the global, brand-building powerhouse it is today,” William Lauder said in a statement. “We’ve never wavered from his vision of being a home for the best brands and best people, all of whom are united in delivering high-quality, prestige beauty products and high-touch service and experiences, while maintaining our unique, values-driven culture.”
Leonard Lauder said that he is confident in the company’s leadership.
In its latest earnings, full year net sales were $15.9 billion, a decrease of 10% from the year prior. Net earnings were $1 billion, down 57.9% year over year.
The company said it aims to return to net sales growth in fiscal year 2024 and over the next few years progressively rebuild its margins.
“This past year has undoubtedly been difficult, largely given the challenges we faced from increased market volatility in certain markets and the corresponding impact on our business,” CFO Tracey Travis said on an earnings call with analysts earlier in the month.
Last year, the company acquired Tom Ford for $2.8 billion.
