Trading Statement

Burberry Group PLC
11 October 2006



                              Burberry Group plc

                           First Half Trading Update


11 October 2006. Burberry Group plc reports on trading for the six months ended
30 September 2006.


Financial Highlights

   • Total revenue increased 10% on an underlying* basis
   • Retail sales rose 23% underlying driven by new and existing stores
   • Wholesale revenues increased 1% underlying
   • Licensing revenue increased 5% underlying
   • Outlook for second half

         - Increased pace of retail expansion to include the opening of five
            stores and five concessions, resulting in an expected 14% average 
            retail selling space gain in the second half and 13% for the 
            financial year

         -  Anticipate a mid single digit percentage increase in wholesale sales

         -  Continue to expect underlying licensing revenue broadly flat 
            relative to the previous year period

Revenue by geographical origin (statutory accounts format)

                                First Half
£ million                    2006        2005

Europe (excluding Spain)      127         115
Spain                          87          86
North America                  80          74
Asia Pacific                   98          80
Total                         392         355



Revenue by channel of distribution

                    Second Quarter                          First Half
           Reported           % change           Reported           % change
£ million 2006   2005   Reported   Underlying   2006   2005   Reported   Underlying
           /07    /06                       *    /07    /06                       *

Retail      87     63         39           28    169    124         36           23
Wholesale  144    152        (5)            1    182    191        (5)            1
Licence     25     25        (1)            1     41     40          3            5
Total      257    240          7            8    392    355         11           10



* Underlying figures exclude the financial effect of the 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 2005/06 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.

Commenting on the trading results, Angela Ahrendts, Chief Executive Officer,
stated, 'Continued strength in outerwear and womenswear as well as the
extraordinary consumer response to the launch of the Burberry Icons Collection
of luxury handbags have fuelled excellent retail performance across markets. Our
distinctive 150th year anniversary advertising campaign and unprecedented
editorial coverage contributed to the sales momentum as drivers of store
traffic, customer acquisition and transaction value. As a whole, performance in
the first half is consistent with expectations for the full financial year.'


Total revenue

Total revenue in the first half increased 10% 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. First half combined revenue for the Retail and Wholesale
channels by geographical market is presented below:



  First Half Retail and Wholesale Revenue by Geographical Market (Destination)

                                 Reported             % change
          Region               2006/    2005/   Reported   Underlying
                                  07       06

          Europe (excluding      113       95         19           19
          Spain)
          Spain                   75       74          0          (3)
          North America           82       76          8           10
          Asia Pacific            76       65         17           10
          Other                    6        5         21           21
          Total                  351      315         11           10



Retail

Retail sales accounted for approximately 43% of total revenue in the period.

Retail sales in the first half increased 23% underlying, 36% reported, driven by
contributions from existing and new stores. The Taiwan acquisition and Spain
retail conversion contributed approximately 13 percentage points to the reported
gain. Comparable store sales increased 11% and average selling space increased
approximately 12% year over year. During the half, the Group opened a total of
six stores, a replacement store, a net five concessions and two outlets. In the
second quarter, Burberry opened stores in Madrid (Spain), Kansas City
(Missouri), Northbrook (Illinois), Hackensack (New Jersey) and Sydney
(Australia). Concessions were added in the UK, Spain and Japan.

Building on strong first quarter performance, retail sales accelerated in the
second quarter. Underlying retail sales increased 28% on a 14% comparable store
sales gain and 15% selling space addition in the quarter. In the US, existing
stores, complemented by new store space, drove strong sales growth. Performance
at existing stores and concessions led excellent sales increases in Continental
European markets. The UK market achieved another double-digit gain on the
strength of existing stores and concessions. Asia achieved good underlying
growth led by existing stores in Hong Kong and other Southeast Asian markets.


Wholesale

Wholesale sales accounted for approximately 46% of total revenue in the first
half.

Underlying wholesale sales increased 1%. In the context of good external demand,
production delays in outerwear and a core handbag group constrained growth in
the half. Reported wholesale sales were also affected by the Taiwan acquisition
and Spain retail conversion, resulting in a 5% reported decline in the period.
The US market experienced a moderate decrease primarily as a result of shipping
delays. In Spain, the ongoing challenges of the specialty store channel produced
a moderate underlying sales decline during the period. Other European markets in
aggregate achieved strong gains, with particular strength in Italy and Germany.
Asia was broadly flat in the period, with initial shipments to Japan offsetting
deferred shipments to duty free and other customers. Emerging markets achieved
strong gains on the basis of new stores and excellent performance at existing
locations. In conjunction with a local franchise partner, the Group opened a
second store in Istanbul (Turkey) during the second quarter.


Licensing

Total licensing revenue in the first half increased 5% on an underlying basis,
3% reported. In Japan, volume gains among ongoing licenses were offset by the
effect of licence terminations, resulting in a moderate underlying decline in
revenue. Good growth in product licence revenue was led by fragrances, which
benefited from the successful launch of Burberry London for women in Spring 2006
and the men's fragrance in Autumn 2006. Watches also continued to maintain good
progress in the period.


Second half outlook

   •Retail. Burberry has accelerated its retail expansion programme for the
    year. The Group plans to open nine Burberry stores, a net 10 concessions and
    four outlets in 2006/07 resulting in an expected 13% increase in average
    retail selling space for the financial year (excluding the effects of the
    Taiwan acquisition and Spain retail conversion). For the second half,
    average retail selling space is planned to increase approximately 14%
    through the addition of five stores and five concessions. Capital
    expenditure is expected to total approximately £50 million for the year.

   •Wholesale. On the basis of Spring/Summer 2007 merchandise orders
    received to date, Burberry anticipates a mid single digit underlying
    increase in wholesale sales for the second half of the year.

   •Licensing. The Group continues to expect licensing revenue broadly flat
    relative to the previous year period. In Japan, Burberry will continue its
    activities to reinforce brand positioning, which constrain volume growth.
    With respect to product licenses, Burberry looks forward to the launch of
    its new eyewear collection during the second half.


Burberry will release interim results on 14 November 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.




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