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 Georgian creative will wrap up his tenure at Balenciaga with a couture show on July 9. His successor has yet to be named.

Demna will show his final Balenciaga couture collection in July before starting at Gucci. The announcement caps weeks of fevered speculation over the future of Italy's largest luxury house, which has been on a high-stakes hunt for a new designer to reverse falling sales since parting ways with Sabato De Sarno in February.

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.

Gucci announced Thursday that the Balenciaga artistic director Demna will take over the creative direction of the Italian luxury fashion house, starting in July. Gucci and its French parent Kering said in a statement that Demna “has redefined modern luxury, earning global recognition and cementing his authority on the industry.’’

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

Kering SA appointed Balenciaga designer Demna Gvasalia to oversee a makeover of its struggling Gucci fashion label, disappointing investors who had expected a high-profile external hire.

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,