By Tassilo Hummel and Piotr Lipinski PARIS (Reuters) -Kering shares dropped sharply on Friday morning after the group led by Francois-Henri Pinault chose to bet on subversive in-house talent Demna to reinvigorate its Gucci label rather than hiring a big-ticket name from fashion's overheating jobs market.

The French luxury-goods company named Demna Gvasalia as the new artistic director of its flagship label Gucci, as the group seeks a brand turnaround amid a challenging market backdrop for luxury names.

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.

Shares of Kering SA nosedived nearly 13% on Friday after the luxury fashion house announced Demna Gvasalia as the new artistic director of Gucci.

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,

PARIS (Reuters) - Kering shares tanked on Friday morning after the group led by Francois-Henri Pinault chose to bet on subversive in-house talent Demna to reinvigorate its Gucci label rather than hiring a big-ticket name from fashion's overheating job market.

Shares of Kering plunged on Friday after the firm announced that Demna Gvasalia would take the reigns as new artistic director of its ailing Gucci fashion line.

Kering appointed Demna Gvasalia as artistic director of Gucci, turning to the Balenciaga designer to inject new life into its flagship brand at a difficult time for the industry.

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.