PARIS– Luxury analysts had been plumping for Gucci to name a high-profile creative director to reverse its declining business, but they seem lukewarm on the choice of Demna, who made Balenciaga a byword for underground,

Demna has been named Gucci's new creative director, stepping into the role after a 10-year tenure at Balenciaga.

Kering lost around $3 billion in stockmarket value on Friday after the group chose in-house talent Demna to reinvigorate its Gucci label rather than hiring one of fashion's big-ticket names as chief designer.