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.

One of the biggest surprises in the fashion world in recent years unfolded as Demna, the designer of Balenciaga, was appointed as the new creative director of Gucci.

“I am truly excited to be joining the Gucci family,” said Demna in his statement, adding, “Contributing to a fashion house that I deeply respect and have long admired is an honor for me.”

$3 BILLION VALUE DROP

According to Reuters, the change at Gucci, the largest brand of the Kering Group, unsettled investors, causing the company’s shares to drop by up to 13%. As a result, the company experienced a value drop of around $3 billion on the stock market last Friday.

Many analysts pointed out that the 43-year-old Demna, known for his success at Balenciaga, might be a risky choice for Gucci, a much larger brand celebrated for its timeless elegance. Ariane Hayate, the European Equity Fund Manager at investment bank Edmond de Rothschild, stated, “This in-house solution may seem to have been taken due to lack of better options, but considering Balenciaga’s success, it is a bold move. Time will tell.”