1st Qtr Trading Update

Burberry Group PLC
19 July 2004

                                                             

                               Burberry Group plc
                            First Quarter Trading Update

19 July 2004. Burberry Group plc reports on trading for the first quarter ended#
30 June 2004.


Highlights          
   Total revenues increased 14% on an underlying* basis, 6% reported
•  Retail sales rose 15% underlying (7% reported) driven by new stores
•  Wholesale revenues increased 10% underlying (5% reported) with growth of 
   approximately 10% expected for the Autumn/Winter 2004 season
•  Licensing revenue increased by 17% underlying (9% reported)
  


                           Quarter to 30 June       
                         2004             2003              % change

£ million   Reported    Underlying*    Reported    Reported     Underlying*

Retail        55.6         59.9          52.1         7            15

Wholesale     37.0         38.8          35.1         5            10

Licence       11.1         11.9          10.2         9            17

Total        103.7        110.6          97.4         6            14

* Underlying figures are calculated at the same exchange rates as used in the
previous year's quarterly reported results.


Commenting on the trading results, Rose Marie Bravo, Chief Executive, stated,
'The financial year is off to a good start. In this quarter which marks
Burberry's seasonal transition from spring to autumn, we achieved strong sell-
through of remaining spring/summer merchandise and experienced an encouraging
initial consumer response to our autumn/winter collections. This performance is
consistent with expectations for the full financial year.'

 
Total revenues
Total revenues in the first quarter increased by 14% on an underlying basis
(i.e. at constant exchange rates), 6% reported, compared to the same period last
year.

 
Retail
Retail sales in the quarter increased by 15% underlying, 7% reported, driven by
contributions from newly opened stores with modest gains at existing stores.
Retail sales accounted for approximately 54% of total revenue in the quarter.
Burberry remains on schedule to open seven new stores and concessions, adding
approximately 8% net retail selling area, for the financial year; no new store
openings were planned for the first quarter.

Retail sales growth varied by region. As anticipated, against a strong
comparative driven by end of season sale activity in the 2003/04 period, US
market sales growth moderated in the current period. This was accompanied by a
corresponding benefit to gross margin. Continental European markets continued to
achieve vigorous growth while the UK market continued to demonstrate improvement
in the quarter relative to the previous period. In Asia, sales in Korea
continued to be adversely affected by the volatile macro environment while
benefiting from an earlier end of season sale period this year. Hong Kong
demonstrated ongoing strength, while Southeast Asia, boosted by new stores,
achieved strong gains.

Wholesale
In the quarter, total wholesale sales increased by 10% on an underlying basis,
5% reported. For the full Autumn/Winter 2004 season, Burberry anticipates
approximately 10% underlying wholesale sales growth. The majority of
autumn/winter product shipments are concentrated in the second quarter of each
financial year.

Licensing
Total licensing revenues in the quarter increased by 17% on an underlying
basis, 9% reported. Licensing revenues from the Japanese market reflected a
reduction in management fees payable with respect to specific licences and
increases in certain royalty rates, with volumes broadly in line with the
previous year. Licensing revenue increases were also driven by strong sales
gains at global product licensees. 

Burberry will provide a first half trading update on 13 October and release 
interim results for the six months to September 2004 on 16 November.



 
Enquiries:

Burberry                                                       020 7968 0577
Stacey Cartwright               CFO
Matt McEvoy                     Strategy and IR
John Scaramuzza                 Strategy and IR

 
Brunswick                                                      020 7404 5959
Susan Gilchrist
Sophie Fitton


 
Certain statements made in this Trading Update are forward looking statements. 
Such statements are based on current expectations and are subject to a number of
risks and uncertainties that could cause actual results to differ materially
from any expected future results in forward looking statements.

This announcement does not constitute an invitation to underwrite, subscribe
for or otherwise acquire or dispose of any Burberry Group plc or GUS plc
shares. Past performance is not a guide to future performance and persons
needing advice should consult an Independent financial adviser.


                      This information is provided by RNS
            The company news service from the London Stock Exchange