Estee Lauder Reviews Portfolio, May Divest Brands Amid Leadership Shift
Estee Lauder is assessing its beauty portfolio, potentially considering the sale of some brands as part of a strategic shift under new leadership.
According to Bloomberg News, the company has engaged Evercore Inc. to evaluate its portfolio. Sources familiar with the matter caution that discussions are ongoing and may not result in any divestitures.
Estee Lauder and Evercore declined immediate comment.
The move comes after the company withdrew its annual financial projections and cut its dividend in October. Stephane de La Faverie, a company insider, became CEO on January 1st.
Estee Lauder has been impacted by declining demand in China and competition from emerging beauty and skincare brands. The company anticipates further industry challenges in the near term.
William Lauder, grandson of the company's founders, stepped down as executive chairman last year. Estee Lauder's stock declined 48.7% in 2024, following significant drops in prior years.