Kering lost around $3 billion in stockmarket value on Friday after the group chose in-house talent Demna to reinvigorate its Gucci label rather than hiring one of fashion's big-ticket names as chief designer.

The French luxury-goods company named Demna Gvasalia as the new artistic director of its flagship label Gucci, as the group seeks a brand turnaround amid a challenging market backdrop for luxury names.

The Georgian designer will finish his time at Balenciaga in royal fashion with one final collection presented during Paris couture week on July 6. According to the release, his time at Gucci will begin almost immediately after in early July 2025.