Trading Statement

Burberry Group PLC
15 April 2008

15 April 2008

                               Burberry Group plc
                                        
                            Second Half Trading Update


Burberry Group plc, the global luxury company, reports on trading for the six
months to 31 March 2008.


Second half highlights (on an underlying basis*)

• Total revenue increased by 18%

• Retail revenue up 17%, with comparable store sales growth of 6%
   •Retail sales over 50% of revenue
   •Nine mainline stores and nearly 40 concessions opened
   •12% increase in selling space

• Wholesale revenue increased by 25%
   •North America and Emerging Markets outperformed
   •Around 10% growth expected in first half of 2008/09

• Licensing revenue unchanged, as expected


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


'Burberry had a good finish to the year, against the background of an
increasingly challenging external environment. Looking forward, we are thrilled
with the momentum of our brand as our core luxury, retail and non-apparel
strategies continue to gain traction, while our seasoned management team focuses
on improving the operational aspects of our business.'

There will be a conference call for investors and analysts to discuss this
update today at 9am (UK time). The conference call can be accessed live on the
Burberry website (www.burberryplc.com), with a replay available later today.

Burberry will release its preliminary results for the year to 31 March 2008 on
28 May 2008.


* Underlying change is calculated at constant exchange rates.

Certain financial data within this announcement have been rounded.


Revenue by origin of business

                             Six months to 31 March                   % change
£ million                         2008        2007                    reported
------------------           ---------   ---------                   ---------
Europe*                            194         143                          35
Spain                               91          87                           4
North America                      135         113                          20
Asia Pacific                       126         115                          10
                             ---------   ---------                   ---------
Total                              546         458                          19
------------------           ---------   ---------                   ---------
* excluding Spain


Retail and wholesale revenue by destination

                            Six months to 31 March              % change
£ million                        2008        2007          reported underlying
------------------          ---------   ---------         ---------  ---------
Europe*                           154         119                29         25
Spain                              86          77                12          1
North America                     137         115                19         24
Asia Pacific                      106          92                16         18
Rest of World                      18          10                87         87
                            ---------   ---------         ---------  ---------
Total                             501         413                21         20
------------------          ---------   ---------         ---------  ---------
* excluding Spain


Revenue by channel of distribution

                          Six months to 31 March               % change
£ million                      2008          2007         reported underlying
------------------        ---------     ---------        ---------  ---------
Retail
- Q3                            161           144               12         14
- Q4                            121            97               24         20
                          ---------     ---------        ---------  ---------
Six months to 31 March          282           241               17         17
------------------        ---------     ---------        ---------  ---------
Wholesale
- Q3                             74            43               71         74
- Q4                            145           129               13          9
                          ---------     ---------        ---------  ---------
Six months to 31 March          219           172               28         25
------------------        ---------     ---------        ---------  ---------
Licensing
- Q3                             19            19               (1)         7
- Q4                             26            26                1         (5)
                          ---------     ---------        ---------  ---------
Six months to 31 March           45            45                -          -
------------------        ---------     ---------        ---------  ---------
Total
- Q3                            254           206               23         26
- Q4                            292           252               16         12
                          ---------     ---------        ---------  ---------
Six months to 31 March          546           458               19         18
------------------        ---------     ---------        ---------  ---------
Q3 is the three month period to 31 December; Q4 is the three month period to 31
March


Total revenue

Total revenue in the second half increased by 18% on an underlying basis (19%
reported), with consistent double-digit growth in both the retail and wholesale
channels and in all regions except Spain. The modernisation of our core icons,
our diversified product offering and consistent marketing message continue to
appeal to consumers globally.


Retail

Retail sales, which accounted for over 50% of total revenue in the second half,
increased by 17% on an underlying and reported basis. Non-apparel continued to
outperform, driven by handbags, shoes, soft accessories and men's accessories.
Product innovation is driving strong growth in apparel in areas such as
seasonless and fashion outerwear, knitwear and dresses.

Comparable store sales increased by 6% in the fourth quarter and the second half
as a whole, although the competitive environment became more volatile as the
period progressed. In the United States, there was double-digit comparable store
sales growth in the second half, boosted by strong performances in tourist and
oil-producing cities. Europe and Asia Pacific both showed positive comparable
store sales growth, with Italy, Germany, Hong Kong and Singapore among our
strongest markets. As expected, comparable store sales in Spain remained down
year-on-year, reflecting a difficult retail environment.

In the second half, we opened a net nine mainline stores including one in
Belgium, one in Aspen, Colorado and our first ever childrenswear standalone
store, located in Hong Kong. We also opened nearly 40 concessions (including the
conversion to retail of over 20 small Spanish babywear shop-in-shops) and five
outlets. There was a 12% increase in average selling space year-on-year during
the second half.


Wholesale

Wholesale revenue, which accounted for 40% of total sales in the second half,
increased by 25% on an underlying basis (28% reported), in line with our
guidance. As with retail, non-apparel and outerwear were the best performing
categories. A more balanced product offer, the more frequent flow of goods to
customers and our basic replenishment programme contributed to growth in all
ranges.

In North America, our product and marketing strategies resulted in increased
penetration of our brand in department stores in key product categories. There
were very strong performances from North America and Europe, where wholesale
revenue by origin in both regions increased by over 40%. Sales growth in Asia
was in excess of 20%, with particular strength in China. Spain remained weak
year-on-year.


Licensing

As expected, total licensing revenue in the second half was unchanged
year-on-year on an underlying and reported basis. The weakness of the Yen
reduced reported revenue and profit by nearly £2m in the second half, although
the strength of the Euro countered this.

Reflecting phasing differences, licensing revenue from Japan was marginally down
on an underlying basis in the second half. There was good volume growth in our
global product licences, including the successful launch of our new fragrance,
Burberry The Beat. The non-renewal of certain licences, predominantly in
menswear, as part of our strategy to move to a more consistent global product
offer, also affected revenue growth.


Outlook

Retail: In the year to March 2009, Burberry expects average selling space to
increase by 12-13% year-on-year, including about 15 mainline store openings.

Wholesale: Based upon orders received to date, Burberry expects wholesale
revenue in the six months to September 2008 to increase by around 10% on an
underlying basis. While Spain is expected to show further weakness, this will be
countered by good growth in all other regions, especially North America (up by
over 20%) and Emerging Markets, as we pursue our strategy of investing in
under-penetrated markets.

Licensing: In the year to March 2009, Burberry again expects broadly flat
underlying licensing revenue, with modest volume growth in apparel in Japan and
good volume growth from our global product licences offset by the non-renewal of
certain other licences. The impact of the Yen exchange rate on reported revenue
and profits is expected to be minimal.

Balance sheet: Net debt at 31 March 2008 is expected to be approximately £70m
(30 September 2007: £89.2m). There will be a mid to high single-digit million
pound interest charge in the year to March 2008.



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.


Notes to Editors

   • Burberry is a global luxury brand with a distinctive British heritage.

   • Burberry designs and sources apparel and accessories, selling through a
    diversified network of retail, wholesale and licensing channels worldwide.

   • Burberry has five strategic themes to underpin its growth: leverage the
    franchise; intensify non-apparel development; accelerate retail-led growth;
    invest in under-penetrated markets; and pursue operational excellence.

   • At 31 March 2008, Burberry had 97 retail stores globally, with 231
    concessions and 40 outlets.

   • Burberry was founded in 1856 and is listed on the London Stock Exchange
    (BRBY.L).







                      This information is provided by RNS
            The company news service from the London Stock Exchange