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.

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

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.

A day after Kering appointed Balenciaga designer Demna to oversee a makeover of its struggling Gucci fashion label, shares of the French luxury-goods company plunged.