Last night, Estée Lauder officially confirmed the retirement of its CFO Tracey T. Travis, effective June 30, 2025, a prospect that had weighed on its share price yesterday.

The American cosmetics group said in a press release that a replacement for Tracey Travis, who had held the post since 2012, was already in the pipeline, but that her name would be announced at a later date.

After losing nearly 2% on Thursday on rumors of her impending departure, Estée Lauder shares rebounded by 2% in early trading on Friday.

While the timing of his departure is far from ideal, given that the group is trying to turn around and cope with the difficulties encountered in the Asian travel-retail market, as well as in China, the economic environment and the slowdown in department stores in the US, we believe that the long transition period ahead will ease the uncertainty surrounding the long-term execution of the group's strategy", commented analysts at Canaccord Genuity.

According to the Canadian broker, the future of Fabrizio Freda, the company's current CEO, could also be uncertain, given that fiscal 2024 marks the last year of his current incentive plan.

The share price has fallen by over 30% since the start of the year, leaving it with a capitalization of over $37.2 billion.

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