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.

Kering shares dropped a significant 12% on Friday morning, following the announcement of Demna’s appointment at Gucci on Thursday afternoon.