NEW YORK - The Estée Lauder Companies Inc. (NYSE:EL) revealed today that Mark Loomis, Group President of North America, will retire at the end of fiscal year 2025. Tara Simon and Amber English have been named as successors, with Simon taking on the role of President, North America, and English becoming President, Digital and Online, North America. Both will begin their new positions on January 1, 2025, to facilitate a smooth transition.
Loomis, who has been with Estée Lauder for over 28 years, has been credited with significant contributions to the company's strategy and growth, particularly in the North America and Asia/Pacific regions. Fabrizio Freda, President and CEO of Estée Lauder, expressed gratitude for Loomis's dedication and impact on the company.
Simon, who joined Estée Lauder in 2020, previously led the California Brands, including Too Faced and Smashbox. Her prior experience includes a role as Senior Vice President of Merchandising, Prestige Beauty at Ulta Beauty (NASDAQ:ULTA), where she was instrumental in evolving the business model and enhancing the retailer's prestige brand offerings. Simon is recognized for her strategic gains in the specialty-multi prestige beauty space and her focus on brand building and consumer engagement.
English, who joined Estée Lauder in 2022, will oversee the digital transformation and omni-capabilities for North America. Her background includes leading the global Amazon (NASDAQ:AMZN) Fashion Private Brands business and various roles across Amazon Fashion, Beauty, and Consumables. English has been influential in leading Estée Lauder's initial brand launches on the U.S. Amazon Premium Beauty store and has focused on developing digital experiences for consumers.
William P. Lauder, Executive Chairman of Estée Lauder, praised both Simon and English for their extensive backgrounds and commercial expertise in prestige beauty, expressing confidence in their ability to drive growth in the North American market.
The Estée Lauder Companies Inc. is known for its portfolio of luxury and prestige brands in skin care, makeup, fragrance, and hair care products, with a global presence in approximately 150 countries and territories.
This leadership transition announcement is based on a press release statement and is intended to provide investors with factual information regarding the upcoming changes in the company's North American management team.
In other recent news, Estee Lauder (NYSE:EL) has been in the spotlight due to a variety of developments. Piper Sandler increased the price target for Estee Lauder to $122.00 from $114.00, maintaining an Overweight rating. This adjustment reflects optimism regarding the company's near-term prospects, especially considering recent economic stimulus measures in China.
Simultaneously, DA Davidson sustained its Buy rating on Estee Lauder shares with a price target of $130.00, despite an earnings downturn in the first half of fiscal year 2024. The firm also revised its earnings per share estimate for Estee Lauder, reducing it by $1.28, or 30%, to $2.95.
On the other hand, Evercore ISI maintained its Outperform rating with a $130.00 price target for Estee Lauder, highlighting the company's recent performance in China's online market. They noted an increase in online sales in China, attributed to market share gains in skincare, particularly with its La Mer brand and the Re-Nutriv upgrade.
In other company news, Estee Lauder's Profit Recovery and Growth Plan aims to deliver between $1.1 and $1.4 billion in net profit over fiscal year 2024 levels. Furthermore, Haider Ackermann has been appointed as the new Creative Director for TOM FORD, a part of Estee Lauder's portfolio, which is expected to drive the brand's expansion into its next phase. These are some of the recent developments surrounding Estee Lauder.
InvestingPro Insights
As Estée Lauder (NYSE:EL) prepares for this significant leadership transition, investors may find additional context from recent financial data and expert insights valuable. According to InvestingPro, Estée Lauder's market capitalization stands at $35.88 billion, reflecting its position as a major player in the prestige beauty industry.
The company's impressive gross profit margin of 71.67% for the last twelve months as of Q4 2024 underscores its ability to maintain pricing power in the competitive beauty market. This aligns with one of the InvestingPro Tips, which highlights Estée Lauder's "impressive gross profit margins." This strength could provide incoming leaders Tara Simon and Amber English with a solid foundation as they take on their new roles in North America.
Another relevant InvestingPro Tip notes that Estée Lauder "has maintained dividend payments for 29 consecutive years." This long-standing commitment to shareholder returns, with a current dividend yield of 2.64%, may offer some reassurance to investors during this period of leadership change.
It's worth noting that while the company faces some challenges, with revenue growth declining by 1.9% in the last twelve months, the quarterly revenue growth of 7.26% in Q4 2024 suggests potential improvement. This could be an area of focus for the new leadership team as they aim to drive growth in the North American market.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Estée Lauder, providing a deeper understanding of the company's financial health and market position as it navigates this transition period.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.