First Half Trading Update

Burberry Group PLC
13 October 2004


                                 Burberry Group plc

                              First Half Trading Update

13 October 2004. Burberry Group plc reports on trading for the first six months
ended 30 September 2004.

Financial Highlights

   • Total revenues increased 14% on an underlying* basis, 8% reported
   • Retail sales rose 12% underlying (4% reported) driven primarily by new
     stores
   • Wholesale revenues increased 13% underlying (8% reported) reflecting
     strong growth in the US and Asia
   • Licensing revenue increased by 31% underlying (28% reported), bolstered
     by the launch of Burberry Brit for men
   • Outlook for second half
     • On schedule to open a minimum of 4 stores and concessions, including a
       store in Rome, in addition to 2 major refurbished stores
     • Mid-to-high single digit wholesale sales growth expected for the Spring/
       Summer 2005 season
     • Anticipate licensing revenues in line with first half

New Fragrance Agreement

   • New fragrance licence to result in increased royalty rate and marketing
     support

            First Half to 30 September
            --------------------------
                     2004                     2003            % change
            -----------------------       --------     ---------------------
£ million   Reported    Underlying*       Reported     Reported  Underlying*
            --------    -----------       --------     --------  -----------

Retail           111            120            107            4           12
Wholesale        197            207            183            8           13
Licence           39             40             31           28           31
            --------     ----------       --------     --------  -----------
Total            347            367            321            8           14


* Underlying figures are calculated at constant exchange rates.

Commenting on the trading results, Rose Marie Bravo, Chief Executive, stated,
'Burberry has again delivered a double digit revenue increase in the first half,
benefiting from our balanced strategy by product, channel and region. We were
particularly encouraged by the 31% gain in our licensing channel, partially
driven by the highly successful launch of Burberry Brit for men. We are also
delighted with our new fragrance licence which will deliver ongoing financial
and marketing benefits.'

Total revenues

Total revenues in the first half increased by 14% on an underlying basis (i.e.
at constant exchange rates), 8% reported, compared to the same period last year.
Revenue growth by geographical region is shown below:

Region                          % change
                              underlying
---------------               ----------

North America                     15
Europe                             7
Asia Pacific                      29


Retail

Retail sales accounted for approximately 32% of total revenue in the period.

Retail sales in the first half increased by 12% underlying, 4% reported, driven
by contributions from newly opened stores with a marginal contribution from
existing stores. During the half, Burberry opened three stores in the US: King
of Prussia, PA; Charlotte, NC; and Scottsdale, AZ. The Company also opened one
concession in Korea. On a year over year basis, selling square feet increased
approximately 10%.

Retail sales growth varied by region in the half. In the US market, a
combination of demanding comparatives (partially driven by unusual end of season
sale activity in the first quarter of the previous year), renovation activity in
key stores, and a slow start to autumn outerwear sales restrained sales growth
in the period. In Europe, Continental markets continued to achieve strong
growth, while the UK market was subdued for the half. In Asia, while sales in
Korea continued to be volatile as a result of the difficult macro environment,
the market achieved a gain for the first half. Hong Kong experienced vigorous
growth throughout the half, while Southeast Asia, boosted by new stores,
achieved strong gains throughout the period.

Burberry remains on schedule to open a minimum of 4 new stores and concessions
during the second half, resulting in the addition of approximately 7% retail
selling area for the financial year. Important openings include a new store in
Rome and the re-openings of the renovated San Francisco and Paris stores in the
third financial quarter.

Wholesale

Wholesale sales accounted for approximately 57% of total revenue in the period.

In the first half, total wholesale sales increased by 13% on an underlying
basis, 8% reported. The US achieved strong growth driven by continued
intensification of Burberry's key accounts. In Europe, the underpenetrated
markets of Italy, France, Benelux and Germany combined with the more developed
markets of Spain and the UK to produce modest growth in the half. Asia, fuelled
by demand in greater China, continued to achieve substantial gains.

On the basis of orders received to date, Burberry anticipates 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.

Licensing

Total licensing revenues in the first half increased by 31% on an underlying
basis, 28% reported. Approximately half of the increase was driven by gains in
Japan and half driven by other licences. Gains in the Japanese market largely
reflect 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. Global product licences produced strong gains, including
fragrance, timepieces and children's apparel.

On 12 October 2004, Burberry entered into a new fragrance licence with its
existing partner, Inter Parfums SA. The long-term agreement is designed to
further the development of Burberry's successful fragrance business. The terms
of the new agreement provide for a substantially enhanced royalty rate and
marketing commitment relative to the previous agreement. Driven by the very
successful launch of Burberry Brit for men in selected markets in August and the
terms of the new agreement, which became effective in the second quarter and
contributed approximately 7 percentage points of the licensing revenue growth,
fragrance related royalty gains were particularly strong in the half.

In the second half of the financial year, Burberry anticipates licensing
revenues consistent with the first half. The more measured pace of growth
relative to that of the first half is expected to be driven by the effects of
licence transition in Japan and Burberry's programme to reduce selectively the
distribution of certain products in that market as well as the anniversary of
the reduction in management fees. Licensing revenue should continue to benefit
from increases in certain royalty rates in Japan and global licence revenue
gains, with fragrance as an important contributor.

Conclusion

As a whole, this performance is consistent with expectations for the financial
year.

Burberry will release interim results 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
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.



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