Underlying sales at luxury goods company Burberry frightened investors on Wednesday, causing shares to drop 7.1 percent. Worries over sales overshadowed relief at finding a replacement for chief executive Rose Marie Bravo, who will become vice chairman when she relinquishes her role in June 2006. Angela Ahrendts will replace her.

The company said earnings before interest and tax would be at the bottom end of the range of "the mid to low £160 millions".

Wholesale sales, which account for just over half of total turnover, fell 3 percent to £191 million in the first half ended 30 September, as clients reduced their orders due to smaller demand for the spring/summer range. The company said underlying wholesale sales would continue to fall in the second half.

Total sales rose 2 percent to £355 million, compared with an 8 percent rise in the same period last year.