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Dive Brief:

• The Estée Lauder Companies has named Stéphane de La Faverie as president and chief executive officer effective Jan. 1. De La Faverie is succeeding Fabrizio Freda who announced his retirement earlier this year.

• De La Faverie has been with the company since 2011, most recently as executive group president overseeing Estée Lauder as well as Jo Malone London, The Ordinary and Le Labo. During his career, de La Faverie has held a variety of executive positions with Giorgio Armani, Lanc?me, Ralph Lauren and Biotherm beauty brands.

• Additionally, Estée Lauder announced that William Lauder will be stepping down as executive chairman of the company and remain chair of the board of directors following its annual shareholder meeting set for Nov. 8.

Dive Insight:

Estée Lauder is ushering in new leadership as the beauty giant works to execute a turnaround.

“Having worked closely with him for many years, I can attest to Stéphane’s ability to nurture and build powerful prestige brands, while his thorough understanding of and respect for our company’s heritage and culture positions him well for success in this role,” William Lauder said in a statement. “His strategic vision will position the company to drive long-term growth in the face of its current challenges, as he deploys transformational new approaches for the future.”

Estée Lauder began a restructuring program earlier this year as sales declined 7% in the second quarter. In February, the company said it would trim up to 5% of its workforce and began to make executive changes, including the promotion of its controller to the CFO position. In October, Estée Lauder continued to make changes as its group president of North America, Mark Loomis, announced his retirement after 28 years with the brand. Assuming new roles in January are Tara Simon, who will become president of North America, and Amber English, who will be president of digital and online in North America.

The company in September also brushed off an unsolicited “mini-tender” offer by TRC Capital Investment Corporation.

In its most recent quarter, announced Thursday, the beauty giant reported first-quarter net sales fell 4% year over year to $3.36 billion. The Estée Lauder Companies also swung to a loss, reporting a net loss of $156 million compared to a net income of $31 million last year. The company also withdrew its full-year outlook given the “complex industry landscape, including the particular difficulty in forecasting the timing of market stabilization and recovery in China and Asia travel retail, and in the context of leadership changes,” Freda said in a statement.