Oct 30 (Reuters) - Estee Lauder ( EL ) named insider

Stephane de La Faverie its new CEO on Wednesday, as the company

looks to revamp its business amid falling demand for cosmetics

and premium fragrances with consumers getting picky with their

spending.

De La Faverie, currently the cosmetic giant's executive

group president, oversees high-end fragrance brands such as Jo

Malone London, Frederic Malle, Le Labo and Kilian Paris.

He joined Estee in 2011 from L'Oreal and will take

on the role from veteran Fabrizio Freda, who announced his

retirement in August, on Jan. 1, 2025.

Estee had earlier said Freda would remain as an adviser to

his successor in fiscal year 2026.

Freda became CEO in 2009 and was responsible for expanding

the company's skincare portfolio with the addition of brands

such as Dr. Jart and The Ordinary owner Deciem.

"Following a comprehensive CEO succession planning process,

and a thorough review of external and internal candidates,

Stephane was the clear choice of the board," Charlene

Barshefsky, presiding board director, said.

The MAC lipstick maker also said William Lauder, the

grandson of the company founders and former CEO, would also step

down from his current role as executive chairman and remain

chair of the board.

As new CEO, de La Faverie will be tasked with reviving

sales, especially in China, at a time when demand for even

"affordable luxuries" such as lipsticks and perfumes, widely

considered recession-proof, are seeing a hit.

Estee is set to report its quarterly earnings on Thursday.

In the prior quarter, the company forecast its annual profit and

sales below estimates due to weakness in China.

Shares of the company have fallen nearly 40% this year.