Aerin Lauder, chairman and creative director of Aerin LLC, attends the Paddle & Party for Pink fundraiser at the residence of Richard Perry, president of Perry Partners LP, in North Haven, New York, U.S., on Saturday, Aug. 17, 2013. The event raised $1.2 million for the Breast Cancer Research Foundation. Photographer: Amanda Gordon/Bloomberg *** Local Caption *** Aerin Lauder | Image Source: houstonchronicle.com
Aerin and Jane Lauder, the granddaughters of Estee Lauder, the founder of the beauty products company that bears her name, have become billionaires amid a bull market for cosmetics companies.
The sisters, who are among the youngest female billionaires in the world, each control more than 17 million shares of Estee Lauder Cos., according to filings with the U.S. Securities and Exchange Commission. The stock, which they own directly and through family trusts, is valued at about $2.6 billion, according to the Bloomberg Billionaires Index.
Shares up 23 percent
The New York-based company's shares have risen 23 percent this year. An Estee Lauder spokeswoman declined to comment on their net worth. They have never appeared on an international wealth ranking.
"The company is continuing to take market share in the global beauty industry as investors flock to stocks which are best in their class," said David Wu, a luxury goods analyst at Telsey Advisory Group. "They're faring even better than their peers."
Aerin, 43, has worked at Estee Lauder for more than two decades and is the company's style and image director. She also runs a namesake fashion business. She's married to Eric Zinterhofer, a co-founder of private equity firm Searchlight Capital Partners.
Jane joined the company in 1996. She was promoted to global president and general manager of Estee Lauder's Origins, Darphin and Ojon brands last year, according to a news release. She's married to Kevin Warsh, a former governor of the Federal Reserve Bank, and, at age 40, is the second youngest female billionaire in the U.S. behind Lynsi Torres, the 31-year-old owner and president of the In-N-Out restaurant chain.
The pair also serve on the company's board alongside their uncle, billionaire Leonard Lauder, and his son, William Lauder. The siblings' father, Ronald Lauder, has a fortune worth at least $3.5 billion, according to the Bloomberg ranking. Leonard Lauder, 80, the company's emeritus chairman and largest shareholder, has a net worth of $9.5 billion.
Left to right, Jane Lauder, Evelyn Lauder, Leonard Lauder, and Aerin Lauder pose at the 34th Annual FiFi awards ceremony hosted by The Fragrance Foundation in New York on Monday, April 3, 2006. Photographer: Adam Rountree / Bloomberg News | Image Source: houstonchronicle.com
Started in 1946
Estee Lauder started the company in 1946 by making skin creams on her kitchen stove and selling them to beauty salons. It became the largest closely held cosmetics company in the world before selling shares in a public offering in 1995. Lauder died in 2004 at age 97. Family members maintain more than 85 percent of its voting control. The company had $10.2 billion in revenue in the fiscal year ended June 30, selling products under brand names such as Aveda, Clinique and Bobbi Brown.
William Lauder, Estee Lauder's executive chairman, is credited for his great emphasis on keeping the heritage of the brand intact while effectively navigating the company's dual structure to reach its global growth aspirations. Visit this site to learn how he was able to surpass the challenges of running a family-owned business by sticking to the brand's core values and traditions.
