Trading Statement

Burberry Group PLC
12 October 2005


                               Burberry Group plc

                           First Half Trading Update


12 October 2005. Burberry Group plc reports on trading for the six months ended
30 September 2005.

Financial Highlights

   • Total revenues increased 3% on an underlying* basis
   • Retail sales rose 9% underlying driven by new and refurbished stores
   • Underlying wholesale revenues declined 1%, consistent with previous
     guidance
   • Licensing revenue increased 3% underlying driven by global licenses
   • Outlook for second half
       -  On schedule to increase average retail selling space by 9% for the
          financial year
       -  Moderate underlying wholesale sales decline expected
       -  Anticipate licensing revenue growth consistent with first half


                  First Half to 30 September              % change
                  --------          --------      ---------     -----------
£ million           2005              2004        Reported      Underlying*
                  --------          --------      ---------     -----------

Retail               124               111             12               9
Wholesale            191               197             (3)             (1)
Licence               40                39              1               3
                  --------          --------      ---------     -----------
     Total           355               347              2               3

*Underlying figures exclude the financial effect of Burberry's Taiwan-related
business in both reporting periods and 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')


Commenting on the trading results, Rose Marie Bravo, Chief Executive, stated,
'Burberry took several important strategic actions in the first half. We brought
our Taiwan business under direct control, continued to rebalance the US channel
mix, set the groundwork for direct distribution in Spain and announced an
exciting new eyewear licence. In retail, with outerwear just entering high
season, our Prorsum collection is the highlight of autumn/winter 2005 to date.'


Total revenues

Total revenues in the first half increased by 3% on an underlying basis (i.e.
excluding the financial effect of the Taiwan Acquisition and exchange rate
differences), 2% reported, compared to the same period last year. The Taiwan
Acquisition results in a sales shift from Burberry's wholesale channel to its
retail channel. Therefore, in determining underlying performance, the financial
effect of the Group's Taiwan-related business is excluded from both reporting
periods. Revenue growth by geographical region is shown below:

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

                           North America         5
                           Europe               (1)
                           Asia Pacific          5


Retail

Retail sales accounted for approximately 35% of total revenue in the period.

Retail sales in the first half increased 9% underlying, 12% reported, driven by
contributions from new and refurbished stores. The acquisition of 12 retail
locations in Taiwan during August 2005 also contributed to reported gains.
During the half, the Group opened a Burberry store in San Antonio, replacement
stores in Zurich and Taipei and an outlet store. Burberry also opened six
concessions, in Spain and Asia. Several store refurbishments were completed in
the half including those in Frankfurt, Munich, Boston, Denver, Philadelphia,
Washington DC and Westchester. On a year over year basis, average selling space
increased approximately 8% in the half.

Retail sales performance varied by region in the half. In the US, solid sales
growth was driven by contributions from new stores, complemented by gains at
existing stores. Against strong comparatives, new stores and concessions drove
sales growth in Continental European markets. The UK market, affected by
external factors, continued to be soft. In Asia, Korea achieved a small gain in
the half notwithstanding the difficult retail environment. Led by existing
stores, Hong Kong and Southeast Asian markets generally achieved strong gains in
the period.


Wholesale

Wholesale sales accounted for approximately 54% of total revenue in the first
half.

Consistent with previous guidance, underlying wholesale sales declined 1% in the
half. Affected by the Taiwan Acquisition, reported wholesale sales decreased 3%.
The US market experienced a moderate decline as a result of Burberry's ongoing
adjustment of the brand's wholesale/retail balance in this market, as well as
caution on the part of certain wholesale customers. In Europe, soft demand in
Spain produced a moderate sales decline during the period. At the same time,
other Continental European markets achieved strong gains in the half. The UK
continued to be soft. Asia achieved good underlying growth in the period.
Boosted by new stores, emerging markets achieved strong gains. In conjunction
with local partners, the Group opened franchised stores in Istanbul (Turkey),
Warsaw (Poland), Sao Paolo (Brazil), Jeddah (Saudi Arabia) and Riyadh (Saudi
Arabia) during the first half.



Licensing

Total licensing revenue in the first half increased by 3% on an underlying
basis, 1% reported. Flat Japan-related royalties reflected a small volume
decline resulting from licence transitions/cancellations, Burberry's programme
to restrict selectively distribution of certain products and a soft apparel
market. This was largely offset by an increase in certain royalty rates.
Excluding the effect of cancelled licenses, total underlying licensing revenue
increased 6% in the half.

Licensing revenue growth also reflected solid gains from Burberry's global
licenses. Fragrance-related royalty growth slowed in the half reflecting strong
comparatives resulting from the Burberry Brit for men launch in the previous
year and the anniversary of the royalty rate increase.

Burberry recently announced a new ten-year eyewear licence with Luxottica Group.
The first collections under the new agreement are expected to be shipped in late
2006.

Second Half Outlook

  • Retail. Retail expansion continues on track. The Group opened a store in
    San Diego (California) in early October and also plans to open Burberry
    stores in Naples (Florida) and Palm Beach Gardens (Florida) and four outlet
    stores in the period. Retail selling space is planned to increase by
    approximately 9% for the financial year, excluding the effect of the Taiwan
    Acquisition.

  • Wholesale. On the basis of Spring/Summer 2006 merchandise orders
    received to date, Burberry anticipates a moderate underlying decline in
    wholesale sales for the second half of the year. As stores are added in the
    US, the Group continues to rebalance its channel mix in that market.
    Burberry also anticipates soft demand in Spain and the UK in the second
    half. In addition, the Group expects to begin the transition of portions of
    its womenswear business in Spain from a wholesale to a retail concession
    format in the financial fourth quarter, which will affect reported results.
    As a result, sales will shift both in terms of timing and channel relative
    to the previous year. Following a period of transition, Burberry expects the
    conversion to enhance its positioning and financial performance in this
    market.

  • Licensing. Burberry anticipates licensing revenue growth broadly
    consistent with that of first half. In Japan, Burberry will continue its
    activities to improve brand positioning, which restrain volume growth.
    Revenues will also be affected by the initial phase of the transition to a
    new eyewear licence, which will commence in the second half. With respect to
    other licenses, Burberry expects trends to be consistent with those of the
    first half of the year.




Burberry will release interim results 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
Alexandra Tweed



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.



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