First Quarter Trading Update

Burberry Group PLC
13 July 2005



Burberry Group plc

First Quarter Trading Update



13 July 2005. Burberry Group plc reports on trading for the first quarter ended
30 June 2005.

Highlights

   • Total revenue increased 9% on an underlying* basis
   • Retail sales rose 9% underlying driven primarily by new and refurbished
     stores
   • Wholesale revenues increased 5% underlying; excluding the effect of the
     Taiwan Acquisition, Burberry continues to anticipate first half wholesale
     sales broadly flat relative to the previous year
   • Licensing revenue increased 26% underlying; Burberry continues to
     anticipate moderate licensing revenue growth for the year
   • Entered into agreements to acquire Taiwan distributors



                      Quarter to 30 June
                     -----------------------
                                2005           2004             % change
                      ----------------                       ----------------
£ million   Reported       Underlying*     Reported     Reported       Underlying*
            --------       ---------       --------     --------       ---------
                                                              

Retail          60.8            60.5           55.6            9               9
Wholesale       38.7            38.8           37.0            5               5
Licence         14.2            13.9           11.1           28              26
              --------       ---------       --------     --------       ---------
    Total      113.7           113.2          103.7           10               9

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


Commenting on the trading results, Rose Marie Bravo, Chief Executive, stated,
'Burberry has had a successful first quarter. We largely completed the seasonal
transition of our stores and are encouraged by the initial consumer response to
autumn/winter merchandise. At the same time, Burberry continued to strengthen
the brand's presence in Asia by finalising terms for the acquisition of our
distributors in Taiwan.'

Total revenue

Total revenue in the first quarter increased 9% on an underlying basis (i.e. at
constant exchange rates), 10% reported, compared to the same period last year.

Retail

Retail sales in the quarter increased 9% underlying, 9% reported, driven by
contributions from newly opened and refurbished stores and marginal gains at
existing stores. Retail sales accounted for approximately 53% of total revenue
in the period. During the quarter, Burberry opened four concessions in Spain and
Korea and an outlet store. The Group also reopened several refurbished stores,
including those in Boston, Denver, Philadelphia and Washington DC. Year on year
average retail selling space increased approximately 8% in the quarter. Burberry
remains on schedule to increase net retail selling area by approximately 8% for
the financial year, excluding the impact of the Taiwan Acquisition.

Retail sales performance varied by region. In the US, strong sales growth at
full price and outlet stores resulted from gains at existing stores, which
benefited from end of season clearance activity, and selling space additions.
Against strong comparatives, sales growth in Continental European markets was
driven primarily by new stores and concessions. The UK market continued to be
soft. In Asia, sales in Korea continued to be volatile as a result of the
challenging retail environment, which produced a small decline for the quarter.
Led by existing stores, Hong Kong and Southeast Asian markets achieved strong
gains in the period.

Wholesale

In the quarter, total wholesale sales increased 5% on an underlying basis, 5%
reported. The majority of autumn/winter product shipments are concentrated in
the second quarter of each financial year. Excluding the impact of the Taiwan
Acquisition, Burberry continues to anticipate first half wholesale sales broadly
flat relative to the previous year. The Taiwan Acquisition will result in a
modest shift of sales from Burberry's wholesale channel to its retail channel
for the half and full financial year.

In conjunction with local partners, the Group opened franchised stores in Sao
Paolo (Brazil), Jeddah (Saudi Arabia) and Riyadh (Saudi Arabia) in the quarter.

Licensing

Total licensing revenues in the quarter increased 26% on an underlying basis,
28% reported. In Japan, aggregate volumes declined as a result of Burberry's
programme to restrict selectively distribution of certain products, a soft
apparel market and licence transitions/cancellations. This decline was largely
offset by increases in certain royalty rates. Licensing revenue growth also
reflected increased royalties from Burberry's global product licensees. These
gains were led by fragrance revenues, which benefited from an improved royalty
structure relative to the previous period. Burberry continues to anticipate
moderate licensing revenue growth for the full financial year.

Taiwan Acquisition

In June, Burberry entered into agreements to acquire the operations and assets
of its distributors in Taiwan (the 'Taiwan Acquisition'). These operations
consist of 12 retail stores and concessions located across Taiwan. Total
consideration for the acquisition, including the value of a future contingent
payment, is expected to be approximately £9 million in cash. Following the
initial partial year of transition, the purchase is expected to contribute in
the order of £2 million of operating profit in financial year 2006/07. The
transaction is scheduled to close in August 2005.

Burberry will provide a first half trading update on 11 October and release
interim results for the six months to 30 September 2005 on 15 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
Robert Gardener
Laura Cummings



The financial information contained in this Trading Update has not been audited.

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