Trading Statement

Burberry Group PLC
12 April 2006


                               Burberry Group plc

                          Second Half Trading Update

12 April 2006. Burberry Group plc reports on trading for the six months ended 31
March 2006.

Highlights

   • Retail sales increased 13% on an underlying(1) basis driven by new and
     existing stores
        -  In the fourth quarter, underlying retail sales increased 16%
   • Wholesale sales decreased 7% underlying, in line with expectations
   • Licensing revenue increased 8% underlying
   • Total revenue increased 3% underlying

Revenue by geographical origin (statutory accounts format)

                           Second Half                                        Full Year
           --------------------------------------------     -------------------------------------------------
            Reported(2)              % change                 Reported(2)                  % change
           ---------------    -------------------------     -------------------     -------------------------

£ million  2005/06 2004/05    Reported     Underlying(1)    2005/06     2004/05     Reported     Underlying(1) 
           -------  ------    --------     ------------     -------     -------     --------     ------------

Europe         117     120          (3)              (3)        232         239           (3)              (3)
Spain           68      80         (14)              (7)        156         170           (8)              (5)
North          
America        100      90          11                5         177         158           12                6
Asia           
Pacific        105      78          35               21         189         149           27               20
           -------  ------      ------          -------     -------     -------     --------          -------
Total          390     368           6                3         753         716            5                3


Revenue by channel of distribution

                           Second Half                                        Full Year
           --------------------------------------------     -------------------------------------------------
            Reported(2)              % change                 Reported(2)                  % change
           ---------------    -------------------------     -------------------     -------------------------

£ million  2005/06 2004/05    Reported     Underlying(1)    2005/06     2004/05     Reported     Underlying(1) 
           -------  ------    --------     ------------     -------     -------     --------     ------------
Retail         196     155          27               13         325         265           22               11
Wholesale      152     174         (12)              (7)        347         372           (7)              (4)
Licence         41      39           6                8          81          78            3                6
           -------  ------      ------          -------     -------     -------     --------          -------
Total          390     368           6                3         753         716            5                3


Commenting on the trading results, Rose Marie Bravo, Chief Executive, stated,
'Retail operations were the highlight of Burberry's fourth quarter. Consumers'
favourable response to spring merchandise, particularly womenswear, and an
exciting advertising campaign contributed to the strong retail performance. At
the same time, the strategically important shift to concession format for a
significant portion of our business in Spain was completed. During the period,
we also successfully launched a major new fragrance, Burberry London.'


(1) Underlying figures exclude the financial effect of Taiwan Acquisition and
the portion of Burberry's business in Spain affected by the retail conversion,
in both reporting periods. In addition, underlying figures are calculated at the
same exchange rates used in the 2004/05 year's reported results for the period.
Burberry completed the acquisition of the operations and assets of its
distributors in Taiwan in August 2005 (the 'Taiwan Acquisition') and initiated
actions related to the retail conversion in Spain during the third quarter of
2005/06.

(2) Calculated at average annual exchange rates.

Total revenue

Total revenue in the six months to March 2006 increased 3% on an underlying
basis (i.e. adjusted for (i) the Taiwan Acquisition, (ii) the portion of
Burberry's business in Spain affected by the retail conversion and (iii)
exchange rate differences). The Taiwan Acquisition and Spain retail conversion
shift sales from Burberry's wholesale channel to its retail channel. In
determining underlying performance, the financial effects of the relevant
businesses are excluded from both reporting periods. Total reported revenue
increased 6% in the half.

Retail

Retail sales in the second half increased 13% underlying, 27% reported, driven
by contributions from newly opened and existing stores. The acquisition of 12
retail locations in Taiwan during August 2005 and the retail conversion of
womenswear shop-in-shops in the stores of a major customer in Spain during
February 2006 contributed approximately seven percentage points of the reported
gain. In addition to the two stores, two outlets and two concessions opened in
the third quarter, the Group opened a store in Naples, Florida, three outlets
and a net one concession during the fourth quarter. On a year on year basis
(excluding Taiwan and Spain), average net retail selling space increased
approximately 9% in the half, and 8% for the full financial year.

In the fourth quarter, retail sales growth accelerated relative to that of the
third quarter, producing a 16% underlying increase. In the US, new and
refurbished stores largely drove sales growth. The majority of Continental
European markets achieved strong gains driven by new stores and momentum at
existing stores. In the UK, existing stores produced a double digit gain in the
period. Asia demonstrated continued underlying strength. Sales in Korea
continued to firm, resulting in a modest gain for the quarter. Hong Kong and
Southeast Asia achieved robust gains primarily on the performance of existing
stores.

Wholesale

In line with expectations, total wholesale sales decreased by 7% on an
underlying basis, 12% reported, during the second half. Primarily as a result of
the ongoing adjustment of the brand's wholesale/retail balance in the US, sales
in this market declined in the half. In Spain, soft demand resulted in a
significant underlying sales decline during the period. Fuelled by existing
accounts, other Continental European markets achieved strong gains in the half.
The UK continued to be challenging. In Asia, timing differences negatively
affected shipments to some markets. Boosted by new stores, emerging markets
achieved strong gains. In conjunction with local partners, the Group opened five
franchise stores in the half, including stores in Abu Dhabi (UAE) and Cancun
(Mexico) in the fourth quarter.

Licensing

Total licensing revenue in the second half increased 8% on an underlying basis,
6% reported. In Japan, the high single digit increase in underlying revenues
largely reflected royalty rate increases as Burberry continues its initiatives
to enhance brand positioning in that market. Global product licences achieved a
solid underlying increase in the half. In February, Burberry launched a new
major fragrance, Burberry London, which enters most large consumer markets
during spring 2006.

2006/07 outlook

In line with the ongoing execution of its core growth strategies, Burberry's
plans for the 2006/07 financial year include:

  • Retail. A minimum 10% underlying increase in average net retail selling
    space (excluding the impact of the Taiwan Acquisition and Spain retail
    conversion). The majority of space expansion will be concentrated in the US
    and Asian markets.
  • Wholesale. First half wholesale sales up a low single digit percentage
    underlying and reported relative to the comparative period based upon orders
    received to date for the Autumn/Winter 2006 season.
  • Licensing. Broadly flat underlying licensing revenue relative to 2005/06
      -   Revenues from Japan are expected to experience a moderate underlying
          decline for the year as a result of licence transitions and Burberry's 
          other ongoing efforts to enhance brand positioning in this market.
      -   Global product licenses are expected to produce strong gains.
      -   On a reported basis, the Group will also experience a significant
          negative exchange rate comparison.
  • Project Atlas. With the initial year of Burberry's five-year
    infrastructure redesign programme drawing to a close, the Group has made
    good progress in implementation while having the opportunity to evaluate the
    initial project scope and assumptions. This first phase of work has
    identified additional opportunities in terms of project scope and
    implementation phasing. The overall financial outline of the programme
    remains unchanged with an approximate £50 million investment during the
    first three years generating in excess of £20 million annually in expense
    savings by the project's third year. Expected expense benefits for the 2006/
    07 financial year are currently anticipated to be a minimum of £5 million. A
    further update will be provided with the Group's preliminary results
    announcement.

Burberry will release its preliminary results for the year ended 31 March 2006
on 25 May 2006.

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


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 shares. Past
performance is not a guide to future performance and persons needing advice
should consult an independent financial adviser.

Appendix



Revenue by geographical destination

                           Second Half                                        Full Year
           --------------------------------------------     -------------------------------------------------
            Reported(2)              % change                 Reported(2)                  % change
           ---------------    -------------------------     -------------------     -------------------------

£ million  2005/06 2004/05    Reported     Underlying(1)    2005/06     2004/05     Reported     Underlying(1) 
           -------  ------    --------     ------------     -------     -------     --------     ------------
Europe         111     104           7                7         217         206            5                5
Spain           61      71         (15)              (6)        135         150          (10)              (6)
North          
America        103      93          10                4         183         166           11                5
Asia           
Pacific        110      95          15                3         206         187           11                4
Other            6       4          49               49          11           7           63               63
           -------  ------      ------          -------     -------     -------     --------          -------
Total          390     368           6                3         753         716            5                3




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