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.

Gucci has announced that the Balenciaga artistic director Demna, who goes by one name, will take over the creative direction of the Italian luxury fashion house starting in July.