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A Gucci store, operated by Kering SA, in the Sanlitun area of Beijing, China, on Saturday, October 12, 2024.
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Actions of Dry He immersed himself on Friday after the company announced that Demna Gvasalia would take the reins as a new artistic director of his Gucci sick fashion line.
Gvasalia, known as Desena in the industry, joins Balenciaga owned by Kering. Replaces Sabato de Sarnno, whose departure was announced last month.
The shares fell 11.66% at 8:39 am, London time.
“Demon’s contribution to the industry, to Balenciaga, and the success of the group has been tremendous. Its creative power is exactly what Gucci needs,” said Kering President and CEO, François-Henri Pinault in a statement.
The appointment marks Kering’s last offer to change its main Gucci label, which represents about half of the group’s total revenues, but has suffered diminishing sales in the midst of a weaker demand in the key Chinese market.
Gucci sales Sunk 24% Annually in the fourth quarter to 1.92 billion euros, Kering reported last month, in the midst of a broader 12% drop in group income.
This is a development story and will be updated shortly.
