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.

PARIS (Reuters) - Kering shares tanked 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 job market.

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.