Lauder family set to sell USD 1B in ELC shares to settle Leonard Lauder’s estate
This comes amidst ongoing restructuring and digital expansion efforts within the company.
USA – The Lauder family, descendants of Leonard Lauder, is selling USD 1 billion in shares of Estée Lauder Companies (ELC) to settle estate obligations following Leonard Lauder’s passing in June 2025.
The sale involves trusts connected to the Lauder family offering about 11.3 million shares of ELC’s Class A Common Stock for USD 90 per share through a registered public offering.
Importantly, Estée Lauder Companies will not receive proceeds from this sale, as the shares being sold are existing family-held shares.
The funds generated from this transaction are intended to cover estate taxes, debts, and administrative expenses related to Leonard Lauder’s estate.
Despite this significant share sale, the Lauder family will maintain substantial control over the company, retaining 82% of the voting rights associated with the common stock after the sale.
This represents a slight decrease from their prior control level of 86%.
Several Lauder family members, including William P. Lauder, Jane Lauder, Gary M. Lauder, and Eric L. Zinterhofer, remain active on the Estée Lauder board, underscoring the family’s ongoing governance role.
This share sale and estate settlement occur against a backdrop of ongoing corporate challenges and transformation.
Estée Lauder is also pursuing digital modernization, including a partnership with Shopify to enhance its omnichannel consumer experience and launching its flagship brand in Amazon Premium Beauty’s online store in Mexico to expand market reach.
Estée Lauder FY2025 financial highlights
In fiscal 2025, Estée Lauder Companies reported a net loss of USD 1.13 billion, impacted by restructuring costs, declining sales, and tariff pressures.
The company’s skincare category remained its top-selling segment, with revenue of USD 7.0 billion, though it declined 12% year over year.
Makeup sales, affected mainly by slower performance from the MAC brand, totalled about USD 4.3 billion, while fragrances remained steady at USD 2.49 billion.
Hair care sales further declined to USD 565 million.
Regionally, the U.S. and Latin America led with sales around USD 4.41 billion, followed by Europe, Korea, and the Middle East at USD 3.57 billion, Asia Pacific at USD 3.6 billion, and mainland China at USD 2.74 billion.
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