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.

Kering appointed Demna Gvasalia as artistic director of Gucci, turning to the Balenciaga designer to inject new life into its flagship brand at a difficult time for the industry.

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.