However, later in the day, CNBC’s Jim Cramer disputed the New York Post’s story, which caused the stock to give back its early morning gains.
Jim Cramer Puts the Rumor to Rest
Cramer, who knows Peltz very well, claims that Peltz has no intention of pursuing a shakeup at The Estée Lauder Companies, citing the firm’s dual-class share structure, which gives the Lauder family outsized control over the direction of the company.“Should Fabrizio Freda lose his job?” Cramer said on CNBC. “I also checked on that. The family loves him. So, it would be quite a departure, after a very good run by the way, that they would suddenly turn on him after seriously one bad quarter.”
So, based on Cramer’s comments, the New York Post story has been put to rest—Freda’s position is secure and a sale to LVMH is highly unlikely.
See Cramer shut down the story in the video below:
.@jimcramer shuts down reports that Trian Partners founder Nelson Peltz is exploring a potential shakeup of $EL in today's #MadDash. pic.twitter.com/p9ZDYcMxju
— Squawk on the Street (@SquawkStreet) May 8, 2023