Balenciaga’s successful designer Demna has become Gucci’s new creative director. Following this move, Kering suffered a value drop of approximately $3 billion in the stock market.

The fashion world witnessed one of the biggest surprises in recent years. Balenciaga’s designer Demna became Gucci’s new creative director.

“I am truly excited to join the Gucci family,” Demna expressed in a statement, saying, “It is an honor for me to contribute to a fashion house that I deeply respect and have admired for a long time.”

LOST $3 BILLION IN VALUE

According to Reuters, this change at Gucci, the largest brand of the Kering Group, unsettled investors leading to a 13% drop in the company’s shares. Consequently, the company lost about $3 billion in value on the stock market on Friday.

Many analysts mentioned that the 43-year-old Demna, renowned for his success at Balenciaga, might be considered a risky choice for Gucci, a much larger brand known for timeless elegance. Ariane Hayate, the European Equity Fund Manager at investment bank Edmond de Rothschild, commented on the matter, saying, “This in-house solution may seem like a decision made due to lack of better options, but considering Balenciaga’s success, it is a bold move. Time will tell.”