Trading Statement

Burberry Group PLC
16 October 2007

16 October 2007


                              Burberry Group plc

                           First Half Trading Update

Burberry Group plc, the global luxury company, reports on trading for the six
months to 30 September 2007.

First half highlights (on an underlying basis*)

• Total revenue increased by 19%

• Retail revenue up 25%, with comparable store sales growth of 11%

• Wholesale revenue increased by 16% as expected, with a further mid-teens
  percentage increase forecast for the second half

• Licensing revenue up 5%

• Increased investment in infrastructure, including Atlas, to support
  growth


Commenting on this performance, Angela Ahrendts, Chief Executive Officer, said:

'We are delighted with Burberry's 19% underlying increase in revenue in the
first half of the year. Our new luxury outerwear, apparel and non-apparel
collections, combined with our compelling marketing campaigns, have again driven
demand in both our retail and wholesale channels. This performance is consistent
with our profit expectations for the full year as we continue to increase our
investment in the infrastructure of the business to support this strong growth.'

There will be conference calls to discuss this update today at 9am and 3pm (UK
time). The conference calls can be accessed live on the Burberry website 
(www.burberryplc.com), with replays of both calls available later today.

Burberry will release its interim results for the six months to 30 September
2007 on 14 November 2007.


* Underlying change is calculated at constant exchange rates.
  Certain financial data within this announcement has been rounded.


Revenue by origin of business

                             Six months to 30 September              % change
£ million                           2007          2006               reported
------------------             ---------     ---------              ---------
Europe (excluding Spain)             169           127                     33
Spain                                 82            87                     (5)
North America                         96            80                     20
Asia Pacific                         102            98                      4
                               ---------     ---------              ---------
Total                                449           392                     15
------------------             ---------     ---------              ---------



Revenue by channel of distribution

                               Six months to 30                 % change
                                   September
£ million                        2007         2006        reported underlying
------------------          ---------    ---------       ---------  ---------
Retail
- Q1                               97           82              18         25
- Q2                              105           87              21         26
                            ---------    ---------       ---------  ---------
Six months to 30 September        202          169              20         25
------------------          ---------    ---------       ---------  ---------
Wholesale
- Q1                               56           38              47         51
- Q2                              151          144               5          7
                            ---------    ---------       ---------  ---------
Six months to 30 September        207          182              14         16
------------------          ---------    ---------       ---------  ---------
Licensing
- Q1                               15           15              (3)         6
- Q2                               25           26              (3)         5
                            ---------    ---------       ---------  ---------
Six months to 30 September         40           41              (3)         5
------------------          ---------    ---------       ---------  ---------
Total
- Q1                              168          135              24         30
- Q2                              281          257              10         13
                            ---------    ---------       ---------  ---------
Six months to 30 September        449          392              15         19
------------------          ---------    ---------       ---------  ---------

Q1 is the three month period to 30 June; Q2 is the three month period to 30
September



Retail and wholesale revenue by destination

                             Six months to 30                  % change
                                 September
£ million                      2007         2006          reported underlying
------------------        ---------    ---------       ---------  ---------
Europe (excluding Spain)        138          110              26         26
Spain                            75           75               1          1
North America                    98           81              20         29
Asia Pacific                     83           76               9         16
Other                            15            9              71         71
                          ---------    ---------       ---------  ---------
Total                           409          351              17         21
------------------        ---------    ---------       ---------  ---------



Total revenue

Total revenue in the first half increased by 19% on an underlying basis (15%
reported), further reinforcing the strength of the Burberry brand and
strategies. By channel, retail sales increased by 25% on an underlying basis. By
region, both Europe (excluding Spain) and North America grew in excess of 20%
underlying; and by product, non-apparel increased by 35% underlying.

Retail

Retail sales, which accounted for 45% of total revenue in the first half,
increased by 25% on an underlying basis (20% reported).

Comparable store sales grew by 11%, driven by strong autumn/winter product
designs, by cohesive advertising and marketing campaigns and by the more
frequent flow of new products to our stores. Luxury handbags, women's runway
apparel and outerwear continued to perform well, further increasing the average
unit retail price in our mainline stores. Comparable store sales growth was
particularly pleasing in the US, Italy and other parts of Continental Europe,
including our Spanish womenswear concessions.

In the first half, there was a 12% increase in average selling space
year-on-year. The net addition of 11 stores, 13 concessions and two outlets in
the period included six in the US, four in Italy and 10 throughout Asia.

Wholesale

Wholesale revenue, which accounted for 46% of total sales in the first half,
increased by 16% on an underlying basis (14% reported), consistent with our
expectations.

This performance reflects the strength of the autumn/winter collection which was
shipped to wholesale customers predominantly during the second quarter. As in
retail, revenue growth was driven by the appeal of the product, by the more
frequent flow of product to customers with the new market calendar and by basic
replenishment. While Spain remained down year-on-year, the US showed particular
strength with growth in key accounts of over 40%. Europe (excluding Spain) and
emerging markets also performed well.

Licensing

Total licensing revenue in the first half increased by 5% on an underlying basis
(down 3% reported). The weakness of the yen reduced reported revenue and profit
by around £3m in the first half. There was growth from non-apparel licences in
Japan and from the global eyewear licence, where the new product range was
launched in late 2006.

Investment in infrastructure

The implementation of Project Atlas continued successfully in the first half,
with further progress in both improving business processes and in installing new
IT systems. To accommodate the strong growth in our business, we have increased
our investment in both areas.

To mitigate the risks of implementation at a time when Burberry is growing so
strongly, we have delayed certain elements of the IT roll-out into the third
quarter. This re-phasing has led to some additional spend, both in operating
costs within the business and in IT resources. As a result of the latter,
overall costs relating to Atlas in the current financial year are now expected
to be approximately £19m (previously £15m). This still brings the total project
cost to just over £50m in the three year period. The programme remains on track
to deliver the targeted £20m tangible benefits to profit in 2007/8.

We have also increased our investment in improving business processes around the
group, including strengthening our global supply chain team, adding warehouse
capacity to handle the strong growth in volume and upgrading our corporate
functions.

Outlook

Retail: Average selling space is expected to increase by 12% year-on-year in the
second half.

Wholesale: Based upon orders received to date, Burberry expects wholesale
revenue in the second half to show a further mid-teens percentage increase on an
underlying basis. This builds on the strong performance of wholesale in the
second half of last year (H1 2006/7: wholesale revenue +1%; H2 2006/7: +17% on
an underlying basis). Spain is expected to show further weakness with the
continuing erosion of multi-brand accounts, countered by good growth elsewhere
across the rest of Europe and the US.

Licensing: For the full financial year, Burberry continues to expect broadly
flat underlying licensing revenue relative to last year. For the second half of
the year, revenue is expected to be moderately down, largely reflecting
different phasing of royalty payments between halves and the non-renewal of
certain menswear licences. The weakness of the yen is expected to reduce
reported revenue and profit by about a further £3m in the second half (about £6m
in the full year).


Enquiries

Burberry                                                      020 7968 5919
Stacey Cartwright   Chief Financial Officer
Fay Dodds           Director of Investor Relations


Brunswick                                                     020 7404 5959
David Yelland
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.





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