Kering Appoints Demna to Revitalize Gucci Amidst Controversial Move

Kering lost $3 billion in stock market value after selecting Demna as Gucci's chief designer. Analysts view the in-house choice as a gamble due to Gucci's elegant reputation. Demna's appointment follows sales decline under previous designer De Sarno. Industry response is mixed, reflecting Gucci's complex market position.

Kering faced a significant stock market decline, losing $3 billion in value, after opting to promote in-house talent Demna to lead Gucci as its new chief designer rather than hiring an established fashion industry star. This decision caused Kering shares to dip by up to 13% by Friday morning trading in Paris.

The fashion world is divided over whether 43-year-old Demna, known for his distinctive street-style aesthetic at Balenciaga, is the right choice for Gucci, a label renowned for timeless elegance. The appointment comes after the brand dismissed previous design chief Sabato de Sarno, amid continuous declining sales.

In appointing Demna, Kering hopes to recapture global trendsetting status. Early reactions, especially from China, signal both excitement and skepticism. Demna's future influence will be closely watched at upcoming fashion events, as he navigates balancing streetwear appeal with Gucci's heritage.

(With inputs from agencies.)