A Gucci store, operated by Kering SA, in the Sanlitun area of Beijing, China, on Saturday, Oct. 12, 2024.
Bloomberg | Bloomberg | Getty Images
Shares of Kering plunged on Friday after the company announced that Demna Gvasalia would take the reins as new artistic director of its ailing Gucci fashion line.
Gvasalia, known as Demna in the industry, joins internally from Kering-owned Balenciaga. He replaces Sabato De Sarno, whose departure was announced last month.
Shares were down 11.66% by 8:39 a.m. London time.
“Demna’s contribution to the industry, to Balenciaga, and to the Group’s success has been tremendous. His creative power is exactly what Gucci needs,” Kering’s chairman and CEO François-Henri Pinault said in a statement.
The appointment marks Kering’s latest bid to turn around its main Gucci label, which accounts for around half of total group revenues but has suffered waning sales amid weaker demand from the key Chinese market.
Gucci sales plunged 24% annually in the fourth quarter to 1.92 billion euros, Kering reported last month, amid a broader 12% fall in group revenues.
This is a developing story and will be updated shortly.
