Kering’s Choice of Insider to Revamp Gucci Prompts Selloff

Kering SA disappointed investors by naming an internal designer to oversee a makeover of its struggling Gucci brand, turning to Balenciaga’s Demna Gvasalia rather than a high-profile external hire.

The choice of a relatively obscure but sometimes controversial creative chief from a fellow Kering label prompted a further selloff in shares of the French luxury-goods company. They plunged as much as 14% in Paris early Friday and have lost 48% over the past 12 months as Kering has fallen behind rivals like LVMH, dragged down by the problems at Gucci.