3rd Quarter Results

Burberry Group PLC
12 January 2005



Burberry Group plc

Third Quarter 2004/05 Trading Update




Burberry Group plc reports on trading for the third quarter ended 1 January
2005.


Financial Highlights

   • Total revenues increased 7% on an underlying* basis
   • Retail sales increased 6% underlying driven by new and refurbished
     stores
   • Wholesale revenues increased 5% underlying; Burberry continues to
     anticipate mid-to-high single digit wholesale sales growth for 
     Spring/Summer 2005 season
   • Licensing revenue increased 14% underlying driven by global licensee gains


                               Third Quarter                                           Nine Months
           -----------------------------------------------------   ----------------------------------------------------
                 2004/05          2003/04       % change                2004/05          2003/04        % change
           ---------------------  --------  --------------------   --------------------  --------  --------------------
£ million  Reported  Underlying*  Reported  Reported  Underlying*  Reported Underlying*  Reported  Reported Underlying*
           ---------------------  --------  --------------------   --------------------  --------  --------------------

Retail        96        100          94         1          6          207       221         203        2        9
Wholesale     47         49          47         2          5          245       255         230        7       11
Licence       18         18          16        15         14           57        58          46       23       25
           ---------------------  --------  --------------------   --------------------  --------  --------------------
Total        161        167         157         3          7          509       534         479        6       12

            * Underlying figures are calculated at constant exchange rates.



Commenting on the trading results, Rose Marie Bravo, Chief Executive, stated,
'In the context of a highly promotional environment, Burberry held its course
and delivered a solid result for the quarter. With favourable initial consumer
response to the spring product, strong editorial presence and an exciting
advertising campaign, Burberry is well-positioned as we enter the season.'


Total revenues

Total revenues in the third quarter ended 1 January 2005 increased by 7% on an
underlying basis (i.e. at constant exchange rates), 3% reported, compared to the
same period last year.


Retail

Retail sales accounted for approximately 59% of total revenue in the period.

Retail sales in the third quarter increased by 6% underlying, 1% reported,
driven by contributions from newly opened and refurbished stores. In the context
of highly promotional retail environments in the US and UK, Burberry maintained
its end of season sales strategy with the timing of sale periods remaining
consistent with that of the previous year. During the quarter, Burberry opened
stores in Rome, Italy and Boca Raton, Florida, added two accessory concessions
in Spain and completed major store refurbishments, including Paris and San
Francisco. On a year over year basis, average selling space increased
approximately 8% in the quarter.

Retail sales growth varied by region. In the US market, despite a challenging
outerwear season, muted consumer response to some classic styles and
deliberately restrained outlet store sales, retail sales increased in line with
space growth in the period. In Europe, Continental markets generally continued
to perform well, while the UK market was weak for the quarter. In Asia, sales in
Korea continued to be volatile as a result of the difficult macro environment
resulting in a flat overall performance for the quarter. Hong Kong experienced
vigorous growth throughout the period, while Southeast Asia, boosted by new
stores, achieved strong gains.

Burberry remains on schedule to open a minimum of two concessions during the
fourth quarter, resulting in the addition of approximately 7% retail selling
area for the 2004/05 financial year. In addition, several important store
refurbishments will commence in the fourth quarter. For the 2005/06 financial
year, the Group has to date signed leases for new stores in Naples, Florida and
San Antonio, Texas.


Wholesale

Wholesale sales accounted for approximately 29% of total revenue in the period.

In the quarter, total wholesale sales increased 5% underlying, 2% reported. On
the basis of orders received to date, Burberry continues to anticipate
mid-to-high single digit growth for the Spring/Summer 2005 season. Spring/summer
merchandise shipments are concentrated in the fourth quarter of each financial
year.

During the quarter, franchise partners opened the following Burberry locations:
3 stores in China; a second store in Moscow (Russia); a second store in Dubai
(UAE); and stores in Copenhagen (Denmark) and Sao Paolo (Brazil).


Licensing

Total licensing revenues in the quarter increased by 14% on an underlying basis,
15% reported, reflecting strong gains by global product licensees. In Japan,
aggregate volumes declined as a result of licensee cancellations/transitions, a
soft apparel market and Burberry's programme to reduce selectively the
distribution of certain products in that market. These declines were partially
offset by increases in certain royalty rates. Global product licences drove
gains in the quarter led by fragrances, which benefited from the ongoing
strength of the Burberry Brit product line.

Conclusion
As a whole, this performance is consistent with management's expectations for
the financial year.



Burberry will provide a second half trading update on 13 April.





Enquiries:

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


Brunswick                                               020 7404 5959
Susan Gilchrist
Laura Cummings
Robert Gardener


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