Second Half Trading Update

Burberry Group PLC
14 April 2004



                               Burberry Group plc

                           Second Half Trading Update
                                        
14 April 2004. Burberry Group plc reports on trading for the six months ended 31
March 2004.

Highlights

   • Total revenues increased by 15% on an underlying* basis, 13% reported
   • Retail sales rose 12% underlying (7% reported) driven by accelerated
     growth in the fourth quarter
   • Wholesale revenues increased 16% underlying (17% reported) driven by
     strong growth for the Spring/Summer 2004 season
   • Licensing revenue increased by 21% underlying (17% reported)
   • 2004/05 plans
     -  increase net retail selling space by approximately 8%
     -  high single digit wholesale revenue growth led by anticipated strong
        growth for the Autumn/Winter 2004 season
     -  more moderate growth in licensing revenue relative to 2003/04

                                6 months to 31 March 2004
                            % change vs the prior year period
                           ----------------------------------
                                   Reported      Underlying *
                                -----------     -------------
Retail                                   7%               12%
Wholesale                               17                16
Licensing                               17                21
                                -----------     -------------
Total                                   13                15

*Underlying figures are calculated at constant exchange rates.

Commenting on the trading results, Rose Marie Bravo, Chief Executive, stated,
'Building on first half success, Burberry continued to achieve strong results in
the second half of 2003/04. In particular, the outstanding response to our
womenswear designs and use of colour throughout the product lines was a key
catalyst across the business. This performance is consistent with expectations
for the financial year.'

Total revenues

Total revenues in the six months to March 2004 increased by 15% on an underlying
* basis (i.e. at constant exchange rates), 13% reported, compared to the same
period last year.

Retail

Underlying retail sales in the second half increased by 12% (7% reported),
driven primarily by contributions from newly opened stores complemented by
modest gains at existing stores. In addition to the four Burberry stores opened
in the third quarter, the Group opened a new store in Houston, Texas and an
expanded store in Manhasset, New York during the fourth quarter. Total net
selling space increased by approximately 12% in the financial year.

Retail growth accelerated in the fourth quarter, with sales increasing by 14%
underlying relative to an 11% gain in the third quarter. Regional market
performance was directionally consistent with third quarter trends. The US
market achieved vigorous growth. Continental European markets continued to gain
momentum while UK trends improved later in the quarter. In Asia, Korea continued
to be adversely affected by the volatile macro environment. Hong Kong
demonstrated ongoing strength, while Southeast Asia, boosted by new stores,
achieved solid gains.

Wholesale

Total wholesale sales increased by 16% on an underlying basis, 17% reported,
during the second half driven by strong sales growth for the Spring/Summer 2004
season. By region, growth was led by the US market complemented by gains in
Europe, modest growth in Spain and expansion in Asia's younger markets. Other
emerging markets also contributed to this increase. Through a local partner, the
Group opened the first Burberry store in Russia (Moscow) in February.

Licensing

Total licensing revenues in the second half increased by 21% on an underlying
basis, 17% reported. Licensing revenues from the Japanese market reflected
increases in certain royalty rates and a reduction in management fees payable
with respect to specific licences. Volumes were in line with the previous year.
In early April, the Group's partners in Japan opened a Burberry store featuring
the brand's Prorsum and London collections in Tokyo's Omotesando district.
Licensing revenue increases were also driven by outstanding sales gains at
global product licensees, particularly fragrances, which continued to benefit
from the highly successful Burberry Brit launch.

2004/05 plans
In line with the ongoing execution of its core growth strategies, Burberry's
plans for the 2004/05 financial year include:
• An approximate 8% increase in net retail selling area through the
  addition of seven stores and concessions and expansions of existing stores
• High single digit wholesale sales growth driven primarily by increased
  sales to existing customers; orders received to date indicate a high single
  digit percentage increase in sales for the Autumn/Winter 2004 season
• More moderate licensing revenue growth relative to 2003/04
  -  revenues from Japan will benefit from an increase in certain royalty 
     rates and a reduction in management fees payable on a base of anticipated
     broadly static volumes
  -  global licensees are expected to continue to produce strong gains,
     although at a more moderate rate

Burberry will announce its preliminary results for the year ended 31 March 2004
on 24 May 2004.

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

*Underlying figures are calculated at constant exchange rates.

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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