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Lauder Reorganizes Brand Portfolio Leadership

Jane Hertzmark Hudis adds Clinique, MAC and Tom Ford Beauty to her lineup, while newly promoted Stéphane de La Faverie gains three brands and oversight of the makeup category.

The Estée Lauder Cos. has reshuffled its brand deck following the ouster of John Demsey seven months ago.

Jane Hertzmark Hudis, executive group president, and Stéphane de la Faverie, who has been promoted to executive group president, will oversee the group’s 21 brands, including the brands formerly under the disgraced Demsey, who was let go following an ill-advised Instagram post. Both will continue to report to chief executive officer Fabrizio Freda.

Hudis will add two of Lauder’s billion-dollar brands — Clinique and MAC, as well as Tom Ford Beauty —to her existing portfolio of La Mer, Bobbi Brown, Origins, Aveda, Bumble and bumble and Dr. Jart+. She will also continue her enterprise-wide executive leadership of skin care and hair care, as well as her role as executive sponsor for key company-wide priorities including initiatives focused on marketing excellence and winning with Chinese consumers.

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De la Faverie is adding the California-based brands Too Faced, Smashbox and GlamGlow to his existing cluster, which includes Estée Lauder and Aerin Beauty, Jo Malone London, Le Labo, Kilian Paris, Editions de Parfums Frederic Malle, Darphin Paris, Lab Series and Deciem. His category leadership is expanding to include makeup, in addition to fragrance, and the subcategories of home, bath and body, and men’s skin care and grooming. He will continue to drive integrated planning and end-to-end business operations enterprise wide, as well.

“The strength of our portfolio reflects the strength of our leadership team, and this evolution leverages the track record and high potential of each leader to take our business to even greater heights in the future,” said Freda in a statement.

The move comes at a pivotal time for many of the brands involved in the reorganization. Lauder has emerged as a surprise frontrunner to acquire Tom Ford International, according to industry sources. The brand has been actively seeking a buyer, and the move would mark Lauder’s first foray into fashion.

Tom Ford is an important contributor to Lauder’s fragrance sales, which were $579 million for the fiscal fourth quarter 2022. For Lauder’s fiscal year year ending June 2022, fragrance sales overall grew 30 percent, with the company noting that Tom Ford Beauty grew strong double digits, reflecting strength in its Signature and Private Blend fragrances, including Black Orchid and Oud Wood.

MAC, too, posted double-digit net sales growth, driven by hero products like Studio Fix, the launch of a new mascara, and successful social media campaigns.

The move also marks De La Faverie’s first time assuming leadership over the makeup category since he joined Lauder in 2011 as senior vice president and global general manager of Aramis and Designer Fragrances.

Although prestige makeup sales have rebounded this year according to data from NPD, comprising one-third of sales and crossing the $2 billion mark for the second quarter, Too Faced, which Lauder acquired for $1.4 billion in 2016, has struggled. While Lauder’s sales in the category grew 11 percent for FY 2022, it did not cite Too Faced or Smashbox as drivers of the business.

Industry sources with knowledge of both brands said that sales for Too Faced and Smashbox are up thus far this year, but that neither is outpacing the market. Glamglow is said to be down, despite the continued strength of the skin-care category.

The reorganization has also led to other promotions within Lauder. Justin Boxford, global brand president of La Mer, has been appointed global brand president of Estée Lauder, reporting to de La Faverie.

Sandra Main, global brand president of La Mer and Bobbi Brown, will assume direct leadership of La Mer and oversee Bobbi Brown until a new leader is named.

Michelle Freyre has been named global brand president of Clinique and Origins, expanding her brand oversight.

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Amber Garrison, who assumed the role of global brand president of Origins in July, will continue as a member of Hudis’s leadership team and report to Freyre.

“Leveraging our internal talent pipeline globally underscores our commitment to create new professional development and career advancement opportunities for the next generation of leaders across our organization,” said executive chairman William P. Lauder in a statement.