FT : Airbus unveils close to $10bn of orders at Paris show overshadowed by Air I

Airbus unveils close to $10bn of orders at Paris show overshadowed by Air India disaster
The world’s two largest planemakers usually vie for large deals but Boeing has scaled back its presence

Airbus dominated the first day of the biennial Paris Air Show, unveiling close to $10bn of orders after its rival Boeing cut back its activities following last week’s fatal Air India crash. 

The European planemaker has secured an order for up to 77 freight and passenger aircraft from Saudi Arabian leasing company AviLease, as well as deals with Riyadh Air and Polish airline LOT.  

The world’s largest aerospace industry gathering is taking place just days after the crash of an Air India flight bound for London. The plane, a Boeing 787-8, crashed shortly after taking off from Ahmedabad, killing all but one of 242 people on board.

Boeing scaled back its presence at the show after the disaster, with chief executive Kelly Ortberg and Stephanie Pope, the head of its commercial aircraft division, both cancelling plans to attend. 

Investigators in India are continuing to examine one of the plane’s “black box” flight recorders, which records cockpit voices and flight data, to try to determine what happened.

The world’s two largest planemakers typically vie for large orders but the accident has cast a shadow over the show, which is also taking place against a backdrop of worries about US tariffs and worsening conflict in the Middle East.

AviLease, which is backed by Saudi Arabia’s sovereign wealth fund, kicked off the show with an order for 30 A321 narrow-body aircraft, with options for 25 more, as well as 10 A350 freight planes and 12 options. Last month, it announced an order of 30 Boeing 737 Max jets during US President Donald Trump’s tour of the Middle East.

Riyadh Air announced an order of 25 A350-1000 wide-body Airbus jets, with options for another 25. Poland’s LOT will buy 40 A220 narrow-body aircraft, with an option to extend to 84 planes. 

The combined orders, excluding options, are valued at close to $10bn, according to estimates from aviation consultancy Cirium. Riyadh Air’s order of 25 A350s alone is valued at about $4.6bn, according to Cirium.

The orders announced on Monday bring the order book of Riyadh Air, which plans to operate its first flight later this year, to a total of 182, according to its chief executive Tony Douglas.

The orders come as both Boeing and Airbus have continued to struggle with persistent supply chain problems, with both “selling what they can build”, according to Sash Tusa, analyst at Agency Partners in London. 

In the case of Airbus, this means wide-body A350s because they have a shorter lead time than the bestselling A320 family of narrow-body jets. Airbus has faced challenges increasing output of the A320, particularly because of shortages of engines. 

The Polish order for A220 jets was welcome, said Tusa, because Airbus needs to sell more for the programme to break even.

FT : How to cut Britain’s sky-high electricity prices

How to cut Britain’s sky-high electricity prices
The UK needs to ensure natural gas is less dominant in setting costs

If economic growth is the UK government’s “number one mission”, it could do no better than to address the country’s punishingly high electricity prices. Britain has the highest industrial electricity prices in the developed world, according to 2023 data from the International Energy Agency — and it has been near the top for some time. This means energy-intensive UK businesses struggle to retain competitiveness, start-ups have less to spend on scaling up and Britain’s attractiveness as an investment destination is damaged. Right now, a manufacturer setting up in the UK would pay almost four times more, per kilowatt-hour, than it would in the US. This is a significant factor in Britain’s feeble productivity growth.

Yet the UK is a world leader in green electricity generation. Last year it generated close to two-thirds of its power from low-carbon sources, well above the global average. Backed by renewable energy sources that have low generation costs, the UK’s electricity prices ought to be a lot lower. But like many nations, its electricity market operates a marginal pricing system: the wholesale price of electricity is determined by the cost of the most expensive power needed to meet demand at any given moment. That is often from plants fuelled by natural gas, a significant portion of which the UK imports at volatile international prices.

This leads to a frustrating situation where expensive gas plants determine the price of electricity the bulk of the time. In 2021, gas set the price of electricity 98 per cent of the time in the UK, compared with just 39 per cent across Europe on average, according to a UCL study. How can Britain ensure gas sets the price less often?

The long-term solution is to phase out gas use and expand renewable and nuclear generation. But the intermittent nature of wind and solar energy means gas will remain an important source until the UK generates all electricity from zero-carbon sources. In the interim, subsidies for industrial users could provide a reprieve, but are not fiscally sustainable. Instead, the government is better off focusing on efforts to modernise an energy system that was designed for the fossil fuel era.

First, the UK must make better use of renewables. The government’s long-term infrastructure strategy, which is being outlined this week, and its forthcoming industrial strategy will be important in guiding public and private investment towards green energy sources. Investing in the country’s poor grid infrastructure and storage technologies would lower the amount of time that costly gas plants are relied upon. Building more electricity links with Europe would also boost the system’s resilience.

Second, flexible power usage has an important role. Different tariff structures can incentivise retail and industrial customers to shift to off-peak times when electricity rates are lower. This can also reduce the outlays on expensive green infrastructure, which are often recouped in bills.

Finally, Britain could adjust its pricing formula. The government is mulling the use of zonal pricing, which would set prices according to the regional electricity mix. Another option worth exploring includes reverting to the pre-privatisation model of charging industry the long-run marginal costs of energy, as recommended by the economist Sir Dieter Helm.

New pricing models make sense in theory. But in practice any move to a new mechanism would require quick and clear execution, to avoid the effect of price uncertainty in dulling energy investment. Either way, the cleanest and most cost-effective way to bring down Britain’s energy prices is to pave the way for cheap, homegrown renewable energy sources to set them for much more of the time.

>>> Europe : Brokers Upgrades & Downgrades - 16th of June 2025 V2(+)

>>> Up
* Aker BP Raised to Add at AlphaValue/Baader
* BT PT Raised to 130 pence from 112 pence at Citi
* Canatu Raised to Buy at Inderes; PT 12 euros
* Celanese Raised to Overweight at Wells Fargo; PT $66
* Cisco Raised to Buy at Deutsche Bank; PT $73 (+)
* Smurfit WestRock Raised to Buy at Jefferies; PT $55
* Spotify PT Raised to $750 from $650 at Evercore ISI
* Symrise Cut to Underperform at Jefferies; PT 90 euros
* Syensqo Raised to Buy at Jefferies; PT 80 euros
* TGS ADRs Raised to Buy at Banco BTG Pactual; PT $37
* Umicore Raised to Buy at Jefferies; PT 16 euros

>>> Down
* Arkema Cut to Hold at Jefferies; PT 65 euros
* Brenntag Cut to Underperform at Jefferies; PT 53 euros
* Clariant Cut to Hold at Jefferies; PT 9.50 Swiss francs
* Kitron Cut to Hold at ABG; PT 57 kroner
* Kone Cut to Hold at Danske Bank Markets; PT 60 euros (+)
* Konecranes Cut to Hold at Danske Bank Markets; PT 75 euros (+)
* Packaging Corp Cut to Hold at Jefferies; PT $205
* Porsche Cut to Underperform at BofA; PT 37 euros (+)

>>> Initiation
* Assa Abloy Rated New Hold at Baptista Research; PT 337 kronor
* Atlas Copco Rated New Hold at Baptista Research
* BoneSupport Rated New Buy at Danske Bank Markets; PT 400 kronor (+)
* Diploma Reinstated Buy at Investec; PT 5,660 pence
* Energean Cut to Hold at Berenberg (+)
* Ericsson Rated New Hold at Baptista Research; PT 87.90 kronor
* Light Science Technologies Rated New Corporate at Shore Capital (+)
* Martin Marietta Rated New Sector Perform at RBC; PT $515
* GEK TERNA SA Rated New Outperform at Mediobanca SpA
* Sandvik Rated New Hold at Baptista Research; PT 239.50 kronor
* Signet Rated New Buy at Jefferies; PT $102
* VP Rated New Buy at Shore Capital; PT 760 pence (+)
* Volvo Rated New Outperform at Baptista Research
* VP Rated New Buy at Shore Capital; PT 760 pence (+)
* Ypsomed Rated New Buy at Stifel; PT 475 Swiss francs

>>> Call
* Porsche AG Cut to Underperform at BofA on Growth Concerns (+)
* Consumer Ingredients Favored in Europe Chemicals at Jefferies

WWD : Leonard Lauder, Legendary Beauty Executive, Dies at 92

Leonard Lauder, Legendary Beauty Executive, Dies at 92
Lauder built the beauty company founded by his mother Estée into a global giant.

Beauty has lost its master builder.

Leonard A. Lauder, arguably the most influential and respected architect of the prestige beauty business, died late Saturday at age 92.

Lauder spent his career molding the Estée Lauder Companies Inc., into the global leader of prestige beauty. The company that his parents — the ever quotable Estée (“When sex goes out of business, so will we”) and her husband Joseph — founded in 1946, their son shaped into a $15.61 billion giant in sales for the 2024 fiscal year.

What drove this empire building was an unquenchable desire to create a gold standard for the industry. In June 1995, five months before the company went public, the then-president and chief executive officer unveiled his vision to become “the preeminent supplier of upmarket cosmetics in the world.”

Then Lauder reached out for that goal.

Lauder once remarked, “Money doesn’t drive me. What drives me is to see that this great company continues its inexorable march to becoming the greatest company in the world. Not the largest, but the greatest.”

In that pursuit, he brought a passion and drive that were seemingly inexhaustible. Younger employees would flag in his wake as Lauder would visit store after store almost from dawn to dark, speaking with retail executives and customers to find out what the latest trends were. As chairman, he could walk onto a store floor anywhere from Los Angeles to London and immediately spot that a counter for one of Lauder’s brands was two inches smaller than a competitor’s, or not positioned correctly for a store’s new traffic pattern.

Even as his company’s success grew, Lauder would listen and question more than issue diktats. Throughout his life he retained a salty sense of humor – perhaps honed during his years in the Navy and Navy Reserve – and never lost his ear-to-ear grin or the twinkle in his eye, which immediately relaxed even the most intimidated person meeting him for the first time.

He was in the forefront of leaders defining and establishing the doctrine of the modern global prestige beauty business, particularly in department and major specialty stores. He was among the first to recognize the transcendent reach of globalization in the beauty business, coining its language and recognizing fundamental doctrines. His vision was driven by the role of innovation, the power of new product introductions, the purity of distribution strategy and the sanctity of brand equity. He viewed brands as living, breathing beings.

Those beliefs may have become thought of as old school as younger competitors came on the scene talking about triple-tier distribution, celebrity marketing, the power of influencers and their digital native brands. But Lauder’s tenacity of vision and Zen-like surety of purpose never faltered and his passion never ceased to fuel the vitality of the business.

Later in life, when asked how he kept his batteries charged, Lauder traced his deep reserves of energy to his practice of teaching his brand equity course to his young executives. He identified himself as Lauder’s CTO, or “chief teaching officer,” perhaps the title that made him the most proud.

“The thing that gives me the greatest pleasure and recharge is teaching,” he said once, noting that he had redone the syllabus “to make it something far deeper than I have ever done.

“The other thing is that a lot of the people who were low-level merchants a long time ago when I was more deeply involved with individual buyers and merchandise managers are now store principals, and what gives me pleasure is meeting with them and understanding them and talking to them.” He added with a grin, “I give them my advice, whether they like it or not.”

At least one person who heeded Lauder’s advice was Ralph Lauren. “Leonard’s life and mine have intersected for so many years and during that time I have called on him many times for advice,” the designer said in 2018. “He was always there for me. He is a man of honor, a man of integrity, a man of great energy and passion and what I’ve really learned and respected was his love and support of his family,” Lauren continued. “They always came first.”

Lauder tended to view the people who worked with him and for him as much more than employees. When asked in 2018 what was his proudest achievement, he replied that it was “the people we have brought up and who are running the company today…These are people who really started at a much lower level and they grew and grew and grew. These people are my proudest accomplishment. The wealth of a company is its people and we are a very wealthy company.”

Throughout his career, long before Lauder started teaching his classes, he was known for his mentoring skills. On more than a few occasions, a rising industry star might be asked with whom they would like to work for next. The answer was often, “Leonard.”

When asked about his reputation, Lauder, who prided himself on his ability to read people, replied, “Every time I’m meeting someone, I ask myself, ‘Can they grow into a great leader?’”

But the tricky part comes when giving someone a second and third chance, usually at the behest of their manager, when Lauder knew instinctively from the beginning that they wouldn’t work out. “I always regret that I didn’t push harder,” Lauder recalled in 2018. “I wanted to let the managers say, ‘let’s do it.’ But if you wait three or four years and the person still hasn’t produced, you’ve lost three or four years.

“I gave a speech some time ago to a group of people at Macy’s in California, and I spoke to them about this and ended with the phrase—‘Just remember this, dumb is forever,’” he recalled.

But he never lost his voracious curiosity. It was not unusual for Lauder to be lunching with someone in a restaurant like Michael’s in Midtown Manhattan and turn his questioning to his favorite subject —what promising start-ups are ripe for the plucking. His eyes would twinkle, he might borrow an order pad from a passing waiter to write on, then whip out a pen and furiously start jotting down names of companies.

Even at age 92, he was still in the game, thinking about how to get the group – which has been struggling over the last few years – back onto the growth track.

The word passion crops up often when associates reminisce about Lauder, particularly when his son, William P. Lauder, executive chairman, reflects about his days with his father. “My father demonstrated that a hugely successful business can be built on this simple concept: A passion for product, a passion for the consumer, a passion for the retailer, a passion for the brand, a passion for quality, a passion for people, and a passion for leadership. His passion for every aspect of building a lasting, world-leading cosmetics company has made our company great. His passion for teaching everybody around him has made us all better as a result.”

But that great passion was not limited to the beauty game. His other great love was collecting art, most famously the works of the Cubist painters. In 2013, Lauder sealed his artistic legacy by donating his world-renowned Cubist collection to the Metropolitan Museum of Art, then consisting of 81 works by Pablo Picasso (34), Georges Braque (17), Juan Gris (15) and Fernand Léger (15). The choice of the Met as the recipient of the donation came as a bit of a surprise since Lauder had long been associated with the Whitney Museum of American Art. But that museum was devoted to American art and Lauder had been quite generous there with money and painting.

Lauder had considered many other museums, but he picked the Met partly because of the encyclopedic nature of its holdings — and its shortcomings. The Met had a sparse collection of 20th century art, a shortage he hoped to help remedy with the opening in the museum of the Leonard A. Lauder Research Center of Modern Art that might inspire other collectors to step forward.

“I wanted to transform the Met,” he said, adding that his generosity was motivated by “my love of art and my love of New York.” Above all “I wanted to make it a gift to New York,” said Lauder, who was born in the city and grew up on the Upper West Side.

Lauder began his life of art collecting in a small way by buying Art Deco postcards at age 6. That fascination grew into a collection of 120,000 postcards, 700 of which were featured in a 2012 exhibition at the Museum of Fine Arts, Boston.

He first found a seat in the art establishment by joining the acquisition board of the Whitney in 1971, then became a trustee, rose to president in 1977 and finally the museum’s chairman in 1994. His gift of $131 million to the Whitney’s endowment was at the time the largest in the institution’s history. This was in addition to his gift of works by Jasper Johns, Roy Lichtenstein, Claes Oldenburg, Cy Twombly and Andy Warhol.

Years before he announced his choice of the Met as a next home of his Cubist collection, Lauder discussed his approach to collecting and drew a parallel between building his business and art collection. “I’m building my art collection not to possess it but to conserve it,” he said, because it’s all going to go to a museum. “Everything I buy, the question is where will it fit into my collection and into a museum.”

The same philosophy applied to the company he helped grow.

“My passion for this [beauty] business is not to make more money, because I have more than enough money for the next five lifetimes [his net worth was estimated by Forbes Magazine at $9.7 billion as of this year]. The passion is to build something great that can be conserved. There is a parallel as to what I do with my art and what happens with our company.”

This all-consuming passion was evident in every corner of his day, even when he was preoccupied with something else. He always had time to stop and talk shop, especially with retailers. Even into his 90s, he would still meet people regularly for lunch to talk business and trends. His eyes retained their sparkle and his grasp on their arm as firm as ever as he pulled them in close for a chat.

His instinct for spotting quicksilver changes in fickle consumer tastes was second to none. Lauder read the twists and turns of the market like a weather map.

He had a knack for perfecting in-store sell-through and promotional strategies.

Not that the Lauders invented every promotional tactic. He freely acknowledged that the ubiquitous gift-with-purchase was invented elsewhere. “Charles of the Ritz had been doing it for years.”

But Estée Lauder put her spin on sampling by giving a gift without any purchase, according to Lauder’s book, “The Company I Keep. My Life in Beauty,” which was published by Harper Business in 2020.

The Lauders took their entire $50,000 advertising budget and ordered huge quantities of full-sized products and mailed invitations to every woman listed on the charge account files of each store in the Lauder distribution. Drop by and get full sized box of face powder for free.

That worked so well that the concept was expanded to include sending postcards — paid for by the stores — to customers whenever Lauder opened a store. The quality of the full-sized gift and the personal touch worked like catnip.

“In every case, eager shoppers mobbed our counters — then spread throughout the main floor in a relentless tide, increasing sales on the entire floor, increasing sales by well over 100 percent. It was a win/win for both of us,” he wrote, referring to both Lauder and the retailers.

Gift-with-purchase and purchase-with-purchase became the engines for holiday selling, and the Lauders mastered the game. One of the more powerful promotional strategies was Lauder’s holiday blockbuster. The idea hit with such impact that some department stores reportedly used the blockbuster to kick off their seasonal merchandising attack.

In analyzing the dynamics of the department store market, Lauder put the consumer at the center of the question: Who owns the customer?

Lauder cited the acceleration of the pace of business for the need to have a future vision. Another driver was the ongoing wave of consolidations of not only brands but especially distribution. “[That touched off] a new war that we have to understand and that is the war as to who owns the consumer. If the beauty industry understands that they are in that war, they will be able to thrive. If they don’t, that’s curtains.”

He then explained, “If the manufacturers of the products own the consumer, they can put as much money as they have available into giving great product, great service, great advice and the business will thrive. However, if they give up ownership of the consumer to the retailer, as happened in the ’30s with Sears Roebuck and is happening today with many of the mass retailers both in the United States and in Europe, those mass retailers will demand greater and greater margin from you because they own the consumer, and you will not have the money to invest in the product.”

As an example he pointed to “the war” in Europe between perfumery chains that were then consolidating and growing larger, demanding more margin in the process. “They are bleeding the product and the ability of the manufacturers to drive customers into their stores,” he said in 2010. “Our key modus operandi is that we use our money to drive consumers into our retail outlets.”

When asked eight years later, in 2018, if a peace treaty had been struck, Lauder firmly said no. “When it comes to many retailers, they truly feel they own the customer [and the sales data] because they are paying the rent,” he said, adding, “this is a battle that simply has never been settled, and it goes on to this day.”

That acuity in spotting issues was a trait that Lauder long displayed and which was first honed in his youth at the University of Pennsylvania’s Wharton School. He later served as a lieutenant in the U.S Navy, and at age 25 joined the family business fulltime in 1958. The next year, he married Evelyn Hauser, who also went to work at the company and eventually rose to senior corporate vice president.

Later she founded the world renowned Breast Cancer Research Foundation. Their marriage lasted 52 years, until her death in 2011. In 2015, Lauder remarried, to Judy Glickman, who survives him.

The story of the beginnings of Lauder, the company, was entrepreneurial in nature and humble in origin. First-year sales in the late ’40s amounted to $50,000, “almost all of which was eaten up by expenses,” according to Lauder’s memoir.

Estée Lauder began — like many industry start-ups — at the kitchen sink. Lauder recalled as a little boy watching his mother cook up facial creams. He never stopped working alongside his mother — the legend — even as the company took flight.

“Mrs. Lauder was deeply involved in the choice of the fragrances,” he recalled, “and I did the makeup and the treatment — and advertising.”

His father handled the finances. His younger brother, Ronald S. Lauder, who survives him, joined the company in 1964 and remains involved as chairman of Clinique Laboratories LLC. He retired as a board director earlier this year.

Decades later, Aerin Lauder, Leonard’s niece who held a top job at Lauder then left to create her own brand, remarked, “He knew just what makes an ad speak to a woman, what makes it beautiful and, most important, how it reflects and strengthens a brand.”

Those were also the yeasty days when the American beauty industry was emerging with bare knuckles flying. Competition was warfare.

“I miss the intensity,” Lauder remarked in 2010. “I miss the hostility. I miss the competition. I miss the love of product. In the old days, earlier on, you had Elizabeth Arden competing with Helena Rubinstein. Then you had Elizabeth Arden competing with Charles Revson. Then you had Charles Revson competing with Estée Lauder. Then you had Leonard Lauder competing against L’Oréal in some areas. It was a battle, really, of founders. As those founders have moved on, you now have professional companies, and the passion between an owner and a founder and a professional manager — as much as one would like to pump that passion in — that passion for competition is different.

“However, that doesn’t mean that things aren’t better, because there is far more professionalism in the products today — no product can come to market until it has been tested and retested and retested again and again and again. I see a great benefit to professional management.

“But that doesn’t mean I don’t mind the scrappiness of the old days.”

Years later, Lauder fondly recalled telling a buyer that his ambition was to rank number one in the U.S. market — then dominated by Revlon, followed by Elizabeth Arden, Helena Rubinstein and Charles of the Ritz — only to be met by skepticism from the retailer.

By 1960, he began making a mark. Lauder was running the daily operations as executive vice president. In that year, the Estée Lauder company opened at Harrods in London, its first step overseas. “We were the first American luxury cosmetics brand to enter the post-war European market,” he recalled.

Now Estée Lauder’s brands are sold around the globe. “In the early ’60s, I had the vision for Estée Lauder of being a multinational and multi-branded company,” he told WWD in 2010.

The first turning point came with the launch of Clinique in 1968. It was a more democratic upstart, compared to the glamour-driven Lauder brand, followed by the revolutionary MAC and a host of other upstart acquisitions, some of which have worked and others that did not.

“Clinique began the transformation of Estée Lauder into the multi-national, multi-brand company I envisioned,” he wrote in his book.

In the ’40s and ’50s, most major cosmetics companies marketed their products under a single brand name, such as Revlon, Elizabeth Arden and Helena Rubinstein. Lauder had another vision: “I hate to use the word today,” he remarked in 1995, “but it was in my mind then — a General Motors of cosmetics.” He continued, “The vision is to continue to expand our brand portfolio and our offering in our field, in our space, and to continue to try to take advantage of the changing world scene.”

Lauder attributed his success, in part, to a strategy of creating his own competition, rather than waiting for challengers to appear. “I created Clinique to compete against Estée Lauder,” he wrote in his memoir. “When we began to acquire other companies, we started with MAC and quickly followed with its polar opposite, Bobbi Brown Cosmetics. Le Mer competes against Estée Lauder’s premium product, Re-Nutriv. In the hair care area, we acquired Bumble and bumble to compete with Aveda.

“What I was trying to bring about was becoming the market leader, and we’ve done that: we are the largest supplier of prestige cosmetics in the world and we are the dominant player in almost every prestige market, largely because of that strategy,” he wrote at the time in his book.

But there was an Achilles heel — keeping your distribution in synch with your brand equity and demand. And the company stumbled with its 1979 launch of Prescriptives, which Lauder described as a super-scientific version of the Lauder brand.

“The strategic mistake I most regret was not cutting Prescriptives’ distribution,” he wrote, noting that the brand was overdistributed “by far. I wanted to cut our distribution to focus on high-end stores. But we recently had gone public and we felt that cutting sales would hurt our share price. The decision led to short-term gain but a long-term loss since we had to eventually close all the Prescriptives counters.”

Through it all, the company retained its original DNA, its prestige identity, its brand-driven nature and its affinity for creative innovation — all driven by a boost of adrenaline provided by a management change in March 2009. William Lauder, who was serving as CEO, moved to executive chairman and recruited Fabrizio Freda from Procter & Gamble to become the group’s CEO and president. Leonard Lauder became chairman emeritus.

In a subsequent WWD interview, Freda praised a long list of corporate attributes that characterized the company, but he made clear he wanted to instill more financial discipline.

During much of Freda’s tenure, the company soared, particularly as sales in China and the travel retail channel accelerated exponentially. The company’s stock price hit an all-time high of 351.13 in January 2022. But during the pandemic, Estée Lauder struggled and is today in turnaround mode under CEO Stéphane de La Faverie, who took the reins this January.

“Leonard Lauder was beloved by many and will be missed tremendously. To our employees at The Estée Lauder Companies, he was an inspiration and a champion,” said de La Faverie. “To the industry, he was an icon and pioneer, earning respect worldwide. His energy and vision helped shape our company and will continue to do so for generations to come. He was a deeply compassionate leader who cared profoundly about every person in the company. I feel privileged to have worked with Leonard, who has been the best mentor I could have dreamt to learn from. He will be remembered by all of us.”

As for Freda, after a few years at the company, he said, “The most lasting lesson I learned from Leonard Lauder is that even though we live in a world where products and consumers are more and more in control, the reality is brands and companies are defined by their distribution strategies and those strategies are built on trust and relationships.”

Relationships, indeed. Leonard Lauder made hand-written thank-you notes on blue cards ubiquitous. Jane Lauder, who held numerous senior positions at the company during her time there and Lauder’s other niece, pointed out that when he traveled, he left a trail of thank-you messages addressed to employees and acquaintances. “His famous notes found their way all over the world,” she said.

Lauder’s influence has always remained palpable. Back in the ’70s and ’80s, when the company was locked in a market share war with L’Oréal, he was known for his vision and maintaining a long-range viewpoint.

Lauder was long known as a lifelong innovator and ground breaker, overseeing the launch of one brand after another — such as Clinique, Aramis, Lab Series Skincare for Men, Prescriptives and Origins.

He also had a knack for generally picking winners to buy. During the indie boom of the ’90s, he led the company through a series of key acquisitions that later proved to be building blocks of the company’s future.

But the company was not always on the leading edge. The ’70s and ’80s was the heyday of designer fragrances, but Lauder seemed to sit out the licensing game. By the ’90s, Lauder said he had wished he had entered the fray sooner. “The only thing that I regret,” he said, “is that when the designer movement came in, I didn’t overrule the family and demand that we start taking up designer names.”

Lauder didn’t elaborate, but he later mentioned that the company had indeed signed a contract with a fashion designer, Emanuel Ungaro, in 1970. But there was a difference of opinion involving Ungaro and Estée, on fragrance direction. “I decided that there wasn’t enough room for two very, very strong points of view.” Lauder recalled in 1995. “So we quietly gave up the contract.”

Eventually, attitudes changed with a shift of winds. A deal was signed in 1994 with Tommy Hilfiger, ushering in a new era for the company, which by 2019 boasted seven designer nameplates, including Tom Ford, Michael Kors, Donna Karan, Ermenegildo Zegna and Tory Burch, all powerful brands. While most of those licenses are now owned by other companies, the Tom Ford brand has become integral to Lauder’s growth.

“Leonard was a father figure to me. We were very close friends for almost 40 years,” said Hilfiger. He was an amazing mentor to me throughout the years. We built an incredible fragrance business over the years, beginning with Tommy and Tommy Girl.

“After the success of those two, many more fragrances and perfumes followed,” Hilfiger recalled. “It was such an exciting opportunity to work with such a phenomenal family business.

“Leonard also taught me so much about art over the years,” the designer continued. “He was the consummate gentleman, and Evelyn was an unforgettable friend. as well. Words cannot describe how much I will miss him.”

But there were changes that ran deeper than nameplates. Lauder’s devotion to the prestige market meant that a different business model had to be invented. Unlike some multichannel companies like L’Oréal, which can cascade down ingredient innovations from higher-priced products to economical mass brands, thus amortizing the R&D costs, Lauder’s focus was strictly on the upper market. Thus the marketing attack was organized on a horizontal basis with sister and brother brands attacking competitors shoulder to shoulder as quickly as possible.

“Everything in the Lauder organization operates on cross-fertilization,” Lauder said. “A duty-free idea winds up in [the Lauder store] in Las Vegas. The Vegas ideas wind up at Color on Three [Bloomingdale’s cosmetics counter]. These ideas will wind up in Prague or Budapest and those ideas will perhaps wind up one day in China.”

This strategy was fine-tuned when it came to product development. A star example shone brightly in the early ’90s during the alpha-hydroxy and salicylic acid boom. Lauder launched one such product after another in one division after another as rapidly as the labs could churn them out.

“The Lauder corporation [got] extremely high marks for being fast on its feet with the alpha-hydroxy trend,” observed Allen Burke, then divisional merchandise manager of Dayton’s, Hudson’s and Marshall Field’s in Minneapolis. “It was the single biggest trend to hit the market in 10 years.”

Leonard Lauder once reminisced about some of the defining moments for the company. “If I had to choose one, it was probably about 1962, when the Estée Lauder brand started to really take off,” he said. “To see our business go ahead 45 or 50 percent per month per year was incredible. It was exhausting but incredible. That was the first major pivotal moment. The second was seeing the success of our international expansions and ventures.”

The third pivotal period came when Lauder’s multibrand strategy began to click, and the fourth came with the acquisition of influential, dynamic brands like MAC and Bobbi Brown and “seeing them hit a new stride and a new era of growth,” Lauder recalled.

In later decades, around 2014, the acquisition of a new wave of indie brands— like Le Labo, Editions de Parfums Frédéric Malle, Kilian, Too Faced, and Glamglow — brought a new Millennial audience. Earlier acquisitions, like Smashbox, gave the company a foothold in the newly booming direct-selling market. By 2019, Lauder listed a total portfolio of 29 brands on its website.

His curiosity, however, extended beyond new brands. His passport was well-worn; he was a ceaseless traveler. Lauder could just as easily be found in Hong Kong haggling with a publisher over a magazine ad placement or calmly sitting in Moscow’s Red Square studying shoppers bustling by.

He was the grandmaster of the prestige game and reveled in the global nature of the competition. He often said the beauty business for him was like playing “a multidimensional game of chess. You move along one plane, which is maybe your national plane. You deal in multiple other planes, which are different nations, different continents, different brands and different channels of distribution.”

That was an apt description of the kaleidoscopic mental moves required to compete on a grand scale with powerhouses like L’Oréal in Europe and Shiseido in Japan, not to mention Unilever, LVMH and Procter & Gamble.

Among the elements he mastered was the power of language and Lauder chose his words carefully in giving interviews.

One of his favorite sayings was, “If you can’t see the future, you can’t get there. It’s as simple as that.”

“Leonard Lauder literally created the prestige cosmetics business,” remarked Jane Hertzmark Hudis, executive vice president and chief brand officer at Lauder, when asked what she learned from him.

“His lessons are as meaningful today as when I started,” she said in a 2010 interview. “Brand equity is everything and without it, nothing else matters. Protect it, cherish it — never ever let it slip away. Leonard believe(d) strongly in the power of intuition, the power of creativity and the power of a woman,” she said.

That view was held by many, not the least by John Demsey, Lauder’s former executive group president. “Leonard was unquestionably one of the greatest architects in prestige beauty and has established the entire business paradigm that we live in today. Aspiration, desire, creativity, product innovation, point of sale, style and effective advertising and communication were the cornerstones of Leonard’s repertoire.”

WSJ : Victoria’s Secret Is Under Mounting Pressure From Latest Activist Investor

Victoria’s Secret Is Under Mounting Pressure From Latest Activist Investor
Barington plans to push the lingerie retailer to overhaul its board

Activist investor Barington Capital Group has built a stake in Victoria’s Secret VSCO -8.18%decrease; red down pointing triangle and believes the lingerie retailer hasn’t lived up to its full potential, according to people familiar with the matter.

The investor’s arrival adds to the pressure that Victoria’s Secret is already facing from another big disgruntled shareholder and after a recent security incident caused the company to temporarily shut down its website.

The details
Barington owns a stake of over 1% in Victoria’s Secret and intends to keep buying more shares, the people said. (The exact size of its position couldn’t immediately be learned.)

The retailer’s stock has tumbled more than 50% so far this year, bringing its market value to about $1.5 billion. After Victoria’s Secret separated from what is now Bath & Body Works BBWI -3.45%decrease; red down pointing triangle in 2021, it was valued at over $6.5 billion.

The activist plans to push Victoria’s Secret to refresh its board and refocus on its core bra business to turn around its share performance, the people said.

Barington believes that Victoria’s Secret is one of the most iconic brands in the world but that managers—including Chief Executive Hillary Super—lack the experience and strategic clarity needed to drive a turnaround, the people added. It plans to ask Victoria’s Secret to consider replacing a majority, if not all of, the board with new independent directors, they said.

Barington also sees opportunities to unlock value in the retailer’s beauty business, which the firm estimates could alone be worth about as much as Victoria’s Secret’s current market value, the people said.

Super took over as CEO last September after stints at lingerie competitor Savage X Fenty and the apparel retailer Anthropologie. Investors at the time were hopeful that her arrival would help breathe new life into the business. She has since focused on newer areas, including sport and swimwear.

A spokesperson for Victoria’s Secret said the company hadn’t heard from Barington yet but looked forward to engaging with the firm. “While we have more work to do, we are already delivering meaningful progress, including exceeding revenue and adjusted operating income guidance in the first quarter. We are confident that executing our strategy under the new and experienced leadership team will continue to unlock value for our shareholders,” the spokesperson said in a written statement.

The context
Victoria’s Secret is already facing pressure from one of its biggest investors, Australian billionaire Brett Blundy, who this month called for a board overhaul and said the company had suffered from “continued mismanagement” and “disastrous board-level decisions.”

In late May, Victoria’s Secret adopted a so-called poison pill in an attempt to fend off Blundy’s investment firm. BBRC International owns about 12.9% of Victoria’s Secret shares, according to a letter made public this month.

Barington considers the shareholder-rights plan to be counterproductive and plans to ask Victoria’s Secret to rescind it, the people familiar with the matter said.

Last week, Victoria’s Secret narrowed its loss and logged higher-than-expected sales in its fiscal first quarter. Still, its outlook for the current quarter was short of analysts’ expectations, and the retailer said it was seeing tepid consumer demand in an uncertain macroenvironment.

The company did highlight strength in beauty and said it was looking to “supercharge” its bras business.

Barington isn’t a stranger to Victoria’s Secret. It amassed a stake in L Brands in 2019 and pushed for a split from Bath & Body Works. The firm, led by James Mitarotonda, primarily invests in consumer and industrial companies.

>>> What to look at today - 16th of June 2025

Investors in Asia struck a cautious tone on Monday, as an escalating conflict between Israel and Iran pushed oil prices higher and raised wider questions about the long-run impact. As markets reopened following a weekend of strikes between Israel and Iran, investors appeared reluctant to make big bets in either direction. A gauge of Asian stocks was just 0.1% higher and moves were mixed across the region. Japan’s Nikkei 225 was up 1.1%, buoyed by a weaker yen. Chinese stocks swung between small losses and gains. Stocks had tumbled on Friday as investors reacted to reports that Israel had launched airstrikes against Iran. A major concern is that the conflict leads to a prolonged disruption to the supply of oil. That could weigh on the global economy and potentially fuel a round of inflation just as many central banks pivot toward easing. Brent crude rose as much as 5.5% in early trading before paring most of its gain. Treasury yields rose at most major maturities. The 10-year yield was up three basis points to 4.43%. US equity futures edged higher. The mixed picture from markets is partly because investors are weighing up local news against broader questions around the conflict. Japanese equities were helped by a mix of a weakening yen, which may boost companies with overseas revenues, and a rally in defense stocks after reports that Japan and the EU would meet to discuss cooperation measures for the defense industry. The yen was around 0.3% weaker against the dollar. Retail sales in China rose 6.4% in May, a much faster expansion than the estimated 4.9%. That figure came alongside a raft of data from the world’s second largest economy, which painted a mixed picture. But the surprise lifted sentiment, and helped Chinese stocks in Hong Kong pare earlier losses.  Investors are bracing themselves for a volatile week. A meeting of the Group of Seven leaders kicked off in a Canadian mountain resort on Sunday, and now looks set to be dominated by discussion of the conflict. The Federal Reserve and the Bank of Japan are among a raft of monetary authorities set to announce interest rate decisions.

Nikkei +1.12% Hang Seng +0.12% CSI -0.05% Shanghai +0.08% Shenzen +0.37%

Eur$ 1.1555 CNH 7.1843 CNY 7.1839 JPY 144.04 GBP 1.3571 CHF 0.8110 RUB 79.5625 TRY 39.4650 WTI$ 73.76 +1.07% Gold 3,425 -0.22% BTC 106,620 +1.80% ETH 2,617 +4.54%

S&P +0.25% Nasdaq +0.34% EuroStoxx +0.04% FTSE +0.02% Dax +0.00% SMI -0.06%

Macro :
- Belgium’s Credit Rating Cut by Fitch as Budget Concerns Linger
- British Virgin Islands, Bolivia Placed on Watchdog’s ‘Gray List’
- G7 Leaders in Canada, Fed Sets Rates: Week Ahead June 14-20
- US Ex-Im Bank May Fund Greenland Rare Earths Mine, Reuters Says

Keep an eye on :
- MEHCQ US : 23andMe to Sell Assets to Wojcicki-Led Nonprofit for $305m
- AIR FP : Airbus Nears Deal to Sell A220 Jets to Poland’s LOT: Reuters
- AIR FP : Airbus Is Studying Simple A220 Stretch to Revive Flagging Model
- AIRO US : Drone Maker Airo’s Shares Rise Up to 291% After Upsized IPO
- Airport Brussels : Flanders Buys OTPP Stake in Brussels Airport for €2.77B: L’Echo
- AMZN US : SK Group, Amazon Web to Build AI Data Center in S. Korea: Chosun
- ASTOR SS : Scandinavian Astor Buys Latvian Defense Company Ammunity
- BIM FP : Biomerieux to Buy Day Zero Diagnostics for Under $25M
- BX US : Blackstone Said to Be in Talks to Buy Embattled Allegiant Resort
- BT/A LN : BT CEO Says AI Advances Could Deepen Job Cuts: FT
- BG US : Bunge’s Viterra Deal Cleared by China, Paving Way for Closing
- NET US : Cloudflare Convertible Finished Four-Plus Times Oversubscribed
- Crystal Place IPO : Crystal Palace FC Backer Eagle Files Confidentially for US IPO
- SATS US : Trump Urged Ergen, Carr to Cut Deal on EchoStar, *ECHOSTAR SHARES EXTEND POSTMARKET RALLY TO MORE THAN 50%
- GMEXICOB MM : Grupo Mexico Will Sell Highway Business for $406 Million
- HSBA LN : HSBC Hastens Search to Find Next Chairman as Tucker’s Exit Nears
- JLR : JLR Expects FY26 Ebit Margin at 5%-7%, Free Cash Flow Near Zero
- JCI US : Johnson Controls Adds $9b to Share Repurchase Program
- KER FP : Kering to Tap Renault’s Luca de Meo as CEO After Share Slump
- LAVA IM : Lavazza Studying Combination With Dallmayr, Corriere Says
- LLY US : Lilly’s Experimental Obesity Drug Shows Promise in Early Study
- MGN NO : Magnora Gets Bid for Hermana at NOK10/Share
- MB IM : Mediobanca May Delay Shareholder Vote on Banca Generali Bid
- MTRO LN : Metro Bank Gets Takeover Approach From Pollen Street, Sky Says
- NFE US : Creditors to New Fortress Energy Organize Amid Bond-Price Slump
- 17 HK : New World Faces Key Test With Bond Interest Payment Due Monday
- PEAN SW : Peach Property Signs New Credit Facility Totalling €120 Million
- PFE US : Pfizer Says FDA Didn’t Expand Indication for Talzenna
- REGN US : Regeneron: Dupixent Outperformed Xolair on Primary Endpoints
- STO AU : *ADNOC AGREES TO TERMS OF TAKEOVER OF SANTOS: AFR
- Relativity Space : Relativity Space Said to Reverse Stock Split After Schmidt Deal
- ROG SW : Roche to Advance Prasinezumab Into Phase III Development
- SCATC NO : Financing for $600m Egypt Solar Power Project Signed: Minister
- SCATC NO : Scatec Reaches Financial Close for Obelisk; Signs PPA for 900MW
- SIKA SW : Swiss Industrials Company Sika Sees Big India Opportunity
- SXS LN : Spectris Board Rejected KKR’s Preliminary Takeover Offer
- TTMT IM : JLR Parent Tumbles After Weak Free Cash Flow Guidance
- TEF SM : Millicom Spain to Buy Telefonica’s Otecel in Ecuador for $380m
- TEF SM : Expreso.ec: This is the 'real' reason why Telefónica sold its operations in Ecuador
- TSLA US : NASA Considers Axiom Launch Next Week Following Delay
- TFG NA : Vend Marketplace Launch of tender offer to buy back own shares
- TTE FP : TotalEnergies gas project in Mozambique faces UK human rights probe
- TTE FP : TotalEnergies to Boost Investment in Malaysia’s Gas Sector: CEO
- THL NZ : Tourism Holdings Headed For Record Gain After Takeover Approach
- TRMED NO : Thor Medical Signs Strategic Sales Agreement for Thorium-228
- UCG IM : UniCredit Owns 1.9% of Mediobanca Ahead of Bank Investor Meeting
- X US : Nippon Steel, US Steel Deal to Close by June 18, Nikkei Reports
- VENDA NO :
- VSAT US : Viasat Shares Jump After $568 Million Settlement With Ligado
- VSCO US : Victoria’s Secret Pressured by Another Investor Urging Changes
- YCA LN : EU seeks to sever nuclear energy ties with Russia - FT :

>>> Europe : Brokers Upgrades & Downgrades - 16th of June 2025

>>> Up
* Aker BP Raised to Add at AlphaValue/Baader
* BT PT Raised to 130 pence from 112 pence at Citi
* Canatu Raised to Buy at Inderes; PT 12 euros
* Celanese Raised to Overweight at Wells Fargo; PT $66
* Smurfit WestRock Raised to Buy at Jefferies; PT $55
* Spotify PT Raised to $750 from $650 at Evercore ISI
* Symrise Cut to Underperform at Jefferies; PT 90 euros
* Syensqo Raised to Buy at Jefferies; PT 80 euros
* TGS ADRs Raised to Buy at Banco BTG Pactual; PT $37
* Umicore Raised to Buy at Jefferies; PT 16 euros

>>> Down
* Arkema Cut to Hold at Jefferies; PT 65 euros
* Brenntag Cut to Underperform at Jefferies; PT 53 euros
* Clariant Cut to Hold at Jefferies; PT 9.50 Swiss francs
* Kitron Cut to Hold at ABG; PT 57 kroner
* Packaging Corp Cut to Hold at Jefferies; PT $205

>>> Initiation
* Assa Abloy Rated New Hold at Baptista Research; PT 337 kronor
* Atlas Copco Rated New Hold at Baptista Research
* Diploma Reinstated Buy at Investec; PT 5,660 pence
* Ericsson Rated New Hold at Baptista Research; PT 87.90 kronor
* Martin Marietta Rated New Sector Perform at RBC; PT $515
* GEK TERNA SA Rated New Outperform at Mediobanca SpA
* Sandvik Rated New Hold at Baptista Research; PT 239.50 kronor
* Signet Rated New Buy at Jefferies; PT $102
* Volvo Rated New Outperform at Baptista Research
* Ypsomed Rated New Buy at Stifel; PT 475 Swiss francs

>>> Call
* Consumer Ingredients Favored in Europe Chemicals at Jefferies

>>> Stoxx 600 Pre-Market Indications

  • BP (BPE5 TH) +2.7%
    • Israel-Iran Attacks Extend to Fourth Day With No Deal in Sight
  • Frontline PLC (HF6 TH) +2.5%
  • Shell (R6C0 TH) +2%
  • TotalEnergies (TOTB TH) +2%
  • Kering (PPX TH) +2%
    • Gucci Owner Kering Turns to Renault CEO in Turnaround Bid (3)
  • QinetiQ (QY6 TH) +1.9%
  • Kongsberg (KOZ1 TH) +1.7%
  • Hensoldt (HAG TH) +1.6%
  • BAE (BSP TH) +1.5%
  • HSBC (HBC1 TH) +1.4%
  • ABN Amro (AB2 TH) -1.4%
  • AUTO1 (AG1 TH) -1.5%
  • Roche (RHO5 TH) -1.6%
  • TUI (TUI1 TH) -1.6%
  • DSM-Firmenich (ZX6 TH) -1.7%
  • Lufthansa (LHA TH) -1.7%
  • JDE Peet’s (JDE TH) -2%
  • Brenntag (BNR TH) -2.1%
    • Consumer Ingredients Favored in Europe Chemicals at Jefferies
  • Renault (RNL TH) -3.1%
  • Symrise (SY1 TH) -3.9%