The great Gucci reset is here. On Wednesday, the Italian fashion house named Demna, the mononymic designer who transformed Balenciaga from a niche luxury house into one of the most provocative, boundary-breaking brands of the last decade, as its new artistic director. He will be in charge of women’s wear, men’s wear and accessories.

Kering shares tanked on Friday morning after the group led by Francois-Henri Pinault chose to bet on subversive in-house talent Demna to reinvigorate its Gucci label rather than hiring a big-ticket name from fashion's overheating job market.

Shares in Kering sank, after the French fashion conglomerate named the provocative designer Demna as artistic director of Gucci, its largest brand. Kering stock recently stood more than 13% lower, putting the shares on course for one of their biggest one-day drops on record,