Shares of Kering plunged on Friday after the firm announced that Demna Gvasalia would take the reigns as new artistic director of its ailing Gucci fashion line.

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 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.