.August 19, 2024 5:25:00 PM

Estee Lauder (NYSE:EL) saw a 2% drop in shares as CEO Fabrizio Freda announced his retirement at the end of fiscal year 2025 after 16 years of leadership. The company is actively working on succession planning, considering both internal and external candidates to fill Freda’s role.

In its recent quarterly earnings report, Estee Lauder exceeded expectations with adjusted EPS of $0.64 and net sales of $3.87 billion, beating analysts’ forecasts. Despite challenges in key markets like mainland China and North America, the company experienced a 7% sales increase, driven by an 8% rise in organic net sales, particularly in Skin Care.

Looking forward, Estee Lauder anticipates a decline in first-quarter adjusted EPS between $0.02 and $0.10, with reported and organic net sales expected to decrease by 3% to 5%. For the full fiscal year, the company projects adjusted earnings of $2.75 to $2.95 per share, with reported and organic net sales ranging from a 1% decline to a 2% increase compared to the previous year.