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.

Italian luxury brand Gucci has appointed Georgian designer Demna as its artistic director, owner Kering said on Thursday, as it tries to revitalise its struggling flagship label and stop a slide in sales.

Shares in Kering sank, after the French fashion conglomerate named the provocative designer Demna as artistic director of Gucci, its largest brand. Kering stock recently stood more than 13% lower, putting the shares on course for one of their biggest one-day drops on record,