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.

PARIS (Reuters) -Kering shares dropped sharply on Friday morning after the group led by Francois-Henri Pinault chose to bet on subversive in-house talent Demna to reinvigorate its Gucci label rather than hiring a big-ticket name from fashion's overheating jobs market.

Demna has a strong viewpoint ... which is the secret sauce for a brand like Gucci,” Bernstein SG analyst Luca Solca said.

Gucci is struggling. Gucci may be desperate. Today, the Italian house announced its appointment of Demna as its new Artistic Director. He will begin his tenure in July of this year, and present his first collection in September. Demna is Gucci’s first “celebrity” designer in the brand’s 100-plus-year history.

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.’’